CoinDesk news: As the freight industry recovers from nearly four years of sluggish conditions, the trucking and under-the-truckload freight-rate index hit a new high in the second quarter. According to a Tuesday report by 3PL AFS Logistics and financial services firm TD Cowen, freight rates are expected to keep rising in the third quarter. Truck freight rates reached a cyclical peak in the second quarter and are expected to increase further in the third quarter. Due to soaring diesel prices and capacity constraints, the per-mile rate component of the TD Cowen-AFS freight index reached a 14-quarter high. The per-mile rate in the second quarter was 16% higher than the January 2018 baseline. The index is expected to rise to a level 17.7% above the baseline in the third quarter. The report also noted that over 48,000 non-compliant drivers were forced out of the industry over the past year. Smaller carriers may temporarily shut down due to the economic downturn and pressure from fuel prices. Andy Dyer, CEO of AFS Logistics, said that small trucking carriers with tight profit margins may suspend operations and wait for fuel prices to fall to more acceptable levels.

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CrystalBallForSentiment

· 1h ago

Will it still rise another 17.7% in the third quarter? Cargo owners’ cost pressure is enormous, and the supply chain will need to be adjusted again

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AirdropEtiquette

· 2h ago

14 quarterly highs—this data is enough to make your scalp tingle; even the 2018 benchmark has been left far behind

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RetroRadioEcho

· 2h ago

With freight charges like this, small and mid-sized carriers really can’t keep up—4.8 ten thousand drivers exiting isn’t a small number.

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YieldKaraoke

· 2h ago

With freight rates spiking this much per mile, terminal consumers ultimately end up paying—then inflation pressure comes again.

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YieldFarmLibrarian

· 3h ago

With strained capacity and expensive diesel, only the truly tough can keep going under the double squeeze.

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CollateralMixer

· 3h ago

Small carriers halting operations and waiting-and-seeing—will market concentration be passively increased? Worth watching.

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TL and LTL shipping rates will hit a new high in the third quarter

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