BLOOMINGTON, IN – Shipping conditions were down again in September say industry analysts at FTR Intelligence.
The data complied from Truckstop.com shows a tightness in capacity that is causing rates to continue to climb, the groups says. Continued hurricane recovery efforts in the Southern United States also contributed too pressure on conditions.
FTR expects efforts from the hurricane to ease in the coming months, improving conditions slightly for shippers, although the group says conditions will still remain in the negative through the new year if the economy remains strong.
Eric Starks, chairman and CEO at FTR, said shipper pressure has been mounting since the middle of the summer, and suggests further rate increases are on their way.
“We have already seen the increase in spot rates, and are recently seeing contract rates being pushed higher. This is coming from increased freight demand, while real capacity continues to tighten,” he said. “Another data point that validates the tight environment is showing up in demand for new trucks as orders for equipment has surged over the last two months as fleets look to expand their fleets.”
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