Three things that could affect trucking this year

February 11, 2021 – According to Cargo Business News, “truckload freight volumes ended 2020 up 2% year over year but that doesn’t tell the whole story. Contract freight volumes were down 8% compared to 2019 while spot market volumes increased by more than 86%.”

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So what are the determinants that may affect trucking in 2021?

1. Diesel prices: By the end of November diesel prices were up 33 cents to $2.70 a gallon. A hike in fuel prices will increase costs and reduce per-mile revenue for a carrier.
2. Truck orders: The current backlog of Class-8 retail truck orders won’t arrive until the middle of 2021. The last time truck orders were this hot was July and August 2018 when spot rates were at multi-year highs.
3. Spot rates: With spot rates now 16% higher than in 2020 and rising, expect more resistance to these rates in the coming weeks.

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