Short-term freight contracts between shippers and motor carriers (and brokers) remain en vogue, as supply chain stakeholders continue to try to balance the recent run-up in truckload demand with the lingering uncertainties surrounding the longer-term outlook for the market and the broader economy.
While contract rates have been steadily climbing since the economic recovery began in early June, the ultimate outlook for contracted per-mile rates between carriers and shippers is somewhat muddy — especially after the calendar flips to 2021.
“There’s winners and losers in nearly every sector at the moment,” said Dean Croke, a principal analyst at DAT Solutions. In large part, carriers have muted any significant contract price increases and haven’t been in a rush to add capacity, he said, lest the bubble pop and the industry find itself in a capacity excess, such as in 2019.
