Transport Topics | Tight Capacity, ELD Mandate Send 3PL Rates Higher

01.03.18 | Burney Simpson

The new year is bringing good news to third-party logistics firms as tight capacity sends the rates they charge shippers higher and their spot market business flourishes.

Capacity demand has been building since the spring of 2016 due to solid economic growth, said Mark Montague, an industry pricing analyst with DAT Solutions, operator of a truckload freight marketplace. DAT’s load-to-truck ratio is a measure of capacity that doubled at one point in 2016 and then nearly tripled in 2017. The industry research group FTR found that in December truckload capacity had hit 100%.

In addition to a bustling economy, capacity has been stretched by e-commerce growth and implementation of the electronic logging device mandate, which some fear will exacerbate the driver shortage. This whirlwind has sent more shippers to the spot market.

Read the full article by clicking here >

For more information about the work of FTR, follow on Twitter @ftrintel, sign up to receive the State of Freight TODAY monthly eNewsletter, or call Helen Lile at (888) 988-1699, ext. 1.