Avery Vise and Eric Starks were posed with the question, "How is FTR viewing the truckload rate environment, as you indicated 10% gains in truckload rates in 2021?"
This Q&A response from the FTR experts came from the January 2021 State of Freight webinar, Preparing for 2021. View the video and the key takeaways below and then leave a comment at the bottom to let us know what you think.
- We always see a response in the contract rate arena to what's happening in the spot arena with a lag of 6 to 8 months.
- That timeframe was shortened in 2020 as shippers recognized very quickly how extreme the capacity situation was and responded faster to lock in capacity
- Truckload rates in 2020 were up 3% y/y, even with the huge dip in the second quarter
- Our freight forecast puts peak demand in the middle of 2021, putting additional strain on already tight capacity.
- Our forecast is for 11% y/y for truckload contract rates in 2021.
If you need to manage your transportation spend, or set budgets for rates, only FTR provides history and forecast for truckload rates for spot and contract, coupled with a freight demand outlook that helps you plan for capacity, letting you decide when it makes sense to go short on the spot market, or lock in contracts to secure capacity.