An index that compares pricing methods for truckload freight continued to show that spot rates continued to exceed contract rates, signaling an expected favorable improvement for carriers.
The Cowen-Chainalytics Freight Indices report, distributed by Cowen analyst Jason Seidl, showed that spot rates maintained a trend that began two months earlier. The positioning of spot rates above contract rates for multiple months previously hadn’t been seen for a year, Seidl’s report said.
“Truckers are seeing some spot rate increases after a very difficult bid season,” Seidl said, noting that the spot rates were about 1.2% higher on average than contract, compared with a difference of about 2% in July.
The data compiled by the analytics firm based on freight payments “lends further credence to our view that we are off the bottom of the market and may be nearing a turning point,” the report said.
Other rate indicators, such as the Cass Truckload Line Haul Index, have shown a deterioration in freight rates on a year-over-year basis throughout 2016, following the 2015 trend that began with increases in the 7% range that evaporated to near zero when the year ended.