Contract Rate Falls Again While Diesel Price Rises
A.N. Webber Logistics makes it the company’s business to help its customers, both large and small, ship smarter and live better. Arming its partners with the latest industry news and analysis is one way to help achieve that together.
Early in 2024, we continue to monitor dry van contract and spot rates; federal funding to build bridges across the country; a ruling that could result in a maximum speed for big rigs; the ups and downs of diesel prices; the creation of more truck parking spaces in key freight corridors; dampened estimates for truckload carriers’ fourth-quarter earnings; and the removal of doctors from a truck driver medical certification registry.
Trucking Dive reported that 2023 ended with the dry van contract rate dropping to $2.49, the lowest level since early 2021. In addition, the spread between contract and spot rates narrowed another 7 cents in December to a 39-cent difference, according to DAT Freight & Analytics.
The U.S. Department of Transportation has selected 37 projects to receive $4.9 billion in funding through the National Infrastructure Project Assistance and Infrastructure for Rebuilding America grant programs. Funding spans bridge projects across the country and a new container terminal at the Port of New Orleans.
The Federal Motor Carrier Safety Administration has again pushed back a ruling that would require that trucks weighing more than 26,000 pounds be equipped with an electronic speed governor to set the device at a maximum speed.
The average price of diesel went up and down throughout January but finished the month at $3.867, a whopping 75.5 cents cheaper than the price per gallon in late January 2023.
The American Trucking Associations applauded federal funding through the Infrastructure for Rebuilding America Program to add about 1,000 truck parking spaces along key freight corridors in California, Florida, Missouri, Oregon, Pennsylvania, Washington, and Wisconsin.
“We understand that multiple companies across multiple sub-sectors across our industry saw a sharp drop-off in on-the-ground activity toward the very end of December, which has the potential to wreck the quarter relative to expectations,” Morgan Stanley analyst Ravi Shanker wrote in a note to clients.
The Federal Motor Carrier Safety Administration says it will disqualify more than 15,000 physicians who can certify truck drivers are healthy enough to operate behind the wheel. Many of them simply have not maintained their accounts in a national registry.
A.N. Webber Logistics’ customers don’t need to wait for after-the-fact analyses on what’s happening in the freight market. The logistics stalwart provides real-time truckload spot market rating that fuels its customers’ supply chain efficiency.
A.N. Webber’s veteran logistics team applies its expertise every time, whether it’s a single shipment or management of an entire supply chain. The family-owned company can move it all, from dry van to heavy haul, flatbed, step decks, and rail. The Kankakee, Illinois-headquartered company utilizes McLeod TMS to offer the best solutions for clients in the appliance, automotive, chemical, food grade/distribution, industrial, manufacturing, paper products, and steel industries. And A.N. Webber moves its customers’ goods with a fleet of Peterbilts with an average age of just 2 years old.
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