Are FreightWaves data nerds finally getting bullish? While pricing power remains firmly with the carriers, Michael Rudolph reports, “Any outlook for spot rates should all but guarantee growth in the coming months. Not only is Q4 riddled with holidays and their corresponding capacity crunches, but the price of diesel is threatening to rise exponentially.”
As you can see in the chart above, if you got in this business with equipment during the pandemic run-up, you’re now deep underwater on your semi loans.
However, if you’re looking to enter the market now or if you need to increase your own capacity, this soft market is creating those buy-in opportunities. Just be mindful that even though spot is bound to go up, the fundamentals around peak season are still very weak.
