Overdrive Magazine

July 2019

Issue link: https://dmtmag.uberflip.com/i/1135354

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July 2019 | Overdrive | 25 Spot rates outlook bleak for 2019 YOUR REPUTATION IS ONLY AS GOOD AS YOUR DRIVETRAIN. You can't afford to risk your reputation on drivetrain parts you don't trust. DEX has you covered with a dependable line of drivetrain parts all remanufactured to the highest quality standards to keep your wheels moving. dexheavydutyparts.com/drivetrain 888.631.3409 DEX-19-004_Drivetrain_OD_042219.indd 1 4/22/19 4:06 PM Per-mile rates on the spot market are forecasted to decline 18 per- cent in 2019 compared to 2018, as freight growth has stalled and market conditions have softened since fall 2018, according to analysts at freight research group FTR. Demand for truck service is "slow- ing substantially," and the slower market is translating to weaker rates, said Avery Vise, FTR's vice president of trucking, on FTR's monthly State of Freight webinar in June. "But let's be clear — that's coming after a couple of very strong years" for spot market and contract rates, said Vise. He said FTR projects contract rates to hold flat this year. Todd Tranausky, FTR's vice presi- dent of rail, said lingering trade dis- putes with China prompted a wave of imports last October to get ahead of a new tariff deadline imposed by the Trump administration. That spike was followed by a lull in imports, leading to some of the decline in freight movement seen in recent months, Tranausky said. An escalation in trade tensions with Mexico – particularly the tariffs threatened by President Trump – "would be painful" for the economy, Vise said. "If we did get involved in a trade war with Mexico, the risks are larger than a trade war with China," he said, because U.S. exports to Mexico are much greater than those to China. — James Jaillet Uber Freight, whose freight-match- ing platform is geared toward small carriers and independent owner- operators, released in June its first Facility Insights Report, a collection of conclusions based on drivers' rat- ings of shippers and receivers. The most prominent factor in drivers' ratings of facilities was turn- around time at shippers or receivers. In positive reviews, quick loading and unloading times were cited 89% of the time. In negative reviews, loading and unloading times were cited in 40% of the reviews, followed by friendliness of staff (26%) and facility amenities (18%). Also, drivers tend to book loads more quickly with shippers and receiv- ers with higher star ratings. Uber based its findings on 145,000 reviews from January to April. — James Jaillet Detention weighs heavily in truckers' Uber ratings

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