Spot market volumes bounce back to pre-Thanksgiving volume, and then some

Discussion in 'Freight Broker Forum' started by Scooter Jones, Dec 8, 2020.

  1. PPDCT

    PPDCT Road Train Member

    1,449
    4,079
    Jun 15, 2017
    St. Paul, MN
    0
    Yeah, I suppose that's fair. I don't currently run any contract freight, so I never really know how well contract rates on these rate averages hold up against the actual contract rates.
     
    Dale thompson Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. 6wheeler

    6wheeler Road Train Member

    2,631
    4,613
    Aug 30, 2009
    0
    DAT and Truckstop get there "lanes" for rates from guess who? Factoring companies.
    I know this is going to sound harsh, but don't let that distract from the point. Factoring companies are for trucking companies that are limited on funds. That information comes from the bottom.

    There are many many shippers that pay $3-$4 per mile. Those "lanes" at $2.25 per mile from DAT and Truckstop is broker's cutting down the cash strap trucking company that needs a factoring company to keep up with cash flow that pay there driver's 45-50 cents per mile.
     
  4. Midwest Trucker

    Midwest Trucker Road Train Member

    3,501
    9,260
    Aug 31, 2018
    0
    Well, and I assumed that contract also means spot pay to the broker as well. Sort of all mixed in together. I guarantee they got their hands in a lot of pies that people aren’t aware of their data being mined. All in the fine print I’m sure. It’s scary almost how much data freight waves is able to buy. Do you guys subscribe to sonar?
     
    JimmyTwoTimes, Dale thompson and PPDCT Thank this.
  5. PPDCT

    PPDCT Road Train Member

    1,449
    4,079
    Jun 15, 2017
    St. Paul, MN
    0
    We don't. We kinda played with it a little during the "try for free during the hurricane" bit, but honestly not hard enough to give it a fair evaluation. We were pretty busy. I'd like to circle back to it, and maybe consider it more, but that'll be a decision made by the boss, one way or the other.
     
  6. 86scotty

    86scotty Road Train Member

    2,619
    6,169
    Aug 27, 2017
    Appalachia
    0
    I agree. I use the DAT average to negotiate with brokers all the time. I find it very helpful when the market is strong and not helpful at all when it is weak. Just last Friday I needed a short hop home. I called on a 250 mile run and she wanted to pay $600. I said, truthfully, DAT 15 day average for this lane is $947, I'll cover it for $900. She didn't even argue, just said OK and sent me a rate con.
     
  7. rollin coal

    rollin coal Road Train Member

    10,822
    16,931
    Mar 29, 2008
    TN
    0
    That's nonsense. Take a look at some of these screenshots below. Plenty of $3+ a mile 15 day average rates on decent miles hauls. Some of them to decent areas or areas that can be deadheaded right back to the start point empty to do it again. I could spend all night posting screenshots like that from all over the country. There's a bunch of them and they're not rare. There's also some in the $2 range and worse. If DAT is working in tandem with brokers to suppress $3+ lane averages then they need to work harder because they're massively failing. And the cash poor carriers that factor need to quit skewing the averages up like they are.
     
    Last edited: Dec 9, 2020
  8. rollin coal

    rollin coal Road Train Member

    10,822
    16,931
    Mar 29, 2008
    TN
    0
    The screenshots...

    Screenshot_20201208-231908_Load Board for Truckers.jpg Screenshot_20201208-231805_Load Board for Truckers.jpg Screenshot_20201208-231731_Load Board for Truckers.jpg Screenshot_20201208-231716_Load Board for Truckers.jpg Screenshot_20201208-231700_Load Board for Truckers.jpg
     
    86scotty Thanks this.
  9. SteveScott

    SteveScott Road Train Member

    4,048
    12,641
    Nov 10, 2015
    0
    I think we'll see those rates starting to trend down starting next week. I'm seeing shippers forcing rates down now in California, and a quick search on DAT for available trucks yesterday (Tuesday) in Sacramento showed over 700 trucks looking for loads. That's the highest I've seen in since last year. My northbound loads the last 2 weeks are about 20% less than the previous weeks. My contract southbound rates have remained the same.
     
    Dale thompson Thanks this.
  10. JimmyTwoTimes

    JimmyTwoTimes Light Load Member

    134
    285
    Aug 23, 2019
    0
    DAT receives data from our TMS, I'm assuming they do with other 3PLs as well. When I look at a trendline on a lane when I use my DAT login, I can actually see little pips that indicate what we paid versus the trend on the lane (see below).

    upload_2020-12-10_8-21-50.png

    I tend to find that DAT is much more accurate for major market to major market 1 pick 1 drop lanes. It gets worse when you deviate from that, and also is tends to lowball short mile rates. It also will lag behind in a shifting market (if you are relying on DAT rates out of Florida in May during a normal produce season, you are going to get burned when the market flips). It's not a perfect system but it is definitely useful.

    We don't currently subscribe to SONAR, but I really like it and would love if we started using it. It's so much easier to send data to a customer supporting challenges in the market place when sending trendlines around outbound tender volume and tender rejection, instead of sending them a RPM trendline that might not even match up with what is being charged on the lane.
     
  11. JimmyTwoTimes

    JimmyTwoTimes Light Load Member

    134
    285
    Aug 23, 2019
    0
    I think any down trend in rates will be short lived, I think there will be a surge in Load to Truck ratio for Christmas. It will probably cool off a bit once the new year rolls around though.
     
    Dale thompson and 86scotty Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted