First, the bad news: In the first quarter of 2008, 935 trucking companies closed their doors, according to Donald Broughton, a transportation industry analyst with Avondale Partners. In total, an estimated 42,000 trucks - 2.1% of the nation's capacity - were idled in the first three months of 2008, Broughton said. Economic growth has slowed in the U.S., and overall freight levels are flat. Truck tonnage rose by 0.5% in May, but the market is likely to remain soft through year end, according to American Trucking Association's seasonally adjusted Truck Tonnage Index, published June 26, 2008.
Seasonally adjusted truck tonnage improved by 0.5% in May, and increased by 3.3% when compared with May 2007, but tonnage is expected to remain flat for 2008. (Source: ATA, 6/26/08 - www.truckline.com)
Now for the good news: Carriers can find high-paying loads on the spot freight market. That's because economic uncertainty drives shippers to seek greater flexibility. Many of them have parked their own fleets, terminated shipping contracts and shifted loads to the spot market. In fact, traffic on TransCore's DAT® Network has doubled since January! That represents a 42% increase compared to freight levels in January through May 2007.
Because the DAT Network is comprised of more than 50 million loads and trucks per year, it is considered a bellwether of the overall spot freight market. The dynamic DAT Network, established 30 years ago as the "Dial-A-Truck" load board, forms the core of the 3sixtyTM and DAT freight matching services.
Exception freight doubled from January to May 2008 (in blue) and is 42% higher than the same period in 2007.
(Source: TransCore, June 2008)
Meanwhile, load postings on the DAT Network have increased while truck postings have declined. That imbalance can provide an edge for carriers, who may find new business opportunities and higher-paying loads.
Load boards can be a gateway to incremental profits, or they can become a primary source of revenue. While most carriers take advantage of freight matching services to minimize costly deadhead miles, some carriers also use load boards to find the most profitable loads and lanes for front hauls as well as back hauls.
Such a load board-based business strategy is an attractive, low-risk alternative to parking the truck - especially if you have the right load board. With its broad user base and longstanding reputation, the DAT Network consistently attracts the best loads and the best brokers. Brokers on the DAT Network have average credit scores above 91 and they pay within an average of 28 days. TransCore load boards provide this credit information, along with a robust set of tools and data to help carriers choose the right loads for their specific equipment type and routes.
(Note: The preceding article was adapted from a feature provided by TransCore to the TruckersB2B Dispatch newsletter for June 2008.)