I don’t know if anyone could have forecasted Russia invading Ukraine or the fallout that would ensue. We have spent the last few weeks reeling over the prices for over-the-road truck rates. Rates that were good last week are not high enough this week. Fuel prices climb weekly as the war continues. All the while the US economy seems to still be surging and demand for all materials climb alongside increasing fuel prices. Just today, (April 1st) President Biden has said he will release one million barrels per day to ease gas prices; let’s hope that wasn’t a bad April Fool’s joke.
As we enter spring, we are seeing demand for trucking go into overdrive with the change of seasons. Alongside fuel prices, rates are climbing for all trailer types across the board to match demand. The shift into spring has many trucks scattered out of their normal pattern. Many loads in the northwest and northeast are becoming available as it warms up and road conditions improve. This has the US truck fleet not nearly as condensed as it was in the months prior. Sometimes we are asked to increase drivers’ rates to get things moving and the fact is that truck capacity is not where it should be in many lanes. So, therefore, a higher rate is not going to make much of a difference. This will settle as we see the normal summer pattern emerge. This frenzy drives rates up as businesses try to meet consumer demand and compete for trucks. Plus, some customers have been waiting on their orders for 3-4 months due to weather delays. Now that the days are warming up, orders are all coming ready at the same time, and this also adds to the demand for trucking. End users are starting to get outdoors more and COVID restrictions are lifting at the same time. It’s the perfect storm conversation at the end of the day. We monitor truck capacity daily and plan for the weeks to come. In the end, we have many things to be thankful for like the current burgeoning economy with no end in sight. Hopefully, the government can pull back on inflation in such a way this year as to not put a halt to economic progress and employers can once again restaff their businesses.
If we can help quote rates for your upcoming spring season, please reach out to us. If you have a dilemma that we can possibly solve, please reach out to us. As always, thank you for your loyalty.