Less-than-truckload (LTL) carriers have increased their rates in recent months despite a trend toward lower average weight per shipment that was likely caused by a shift from brick and mortar retail to e-commerce, according to a freight sector analysis from the investment bank Cowen Inc. and logistics provider AFS Logistics LLC.
Although they’re moving less weight in each parcel, the carriers have hiked their rates to cope with other factors such as labor shortages and capacity restraints, the companies said in their Cowen/AFS Freight Index.
The index forecasts the LTL rate per pound to continue to grow in the fourth quarter and truckload rates per mile to continue to grow through 2021.
“Using applied machine learning, data science, and the annual transportation spend at AFS since 2018 to give a strong picture of the overall market, the Freight Index currently forecasts, among other things, that we should see the (full load) TL rate market reach a new high in the fourth quarter of 2021, with LTL rates expected to grow at an even larger clip,” said Jason Seidl with Cowen.
Source: DC Velocity