March 23, 2023 Market Update

The transportation industry is experiencing a continued softening trend throughout March, with ample capacity readily available in the market. The current load-to-truck ratio is 2:1, indicating a loosening market. Furthermore, the FreightWaves SONAR Outbound Tender Volume Index (OTVI), which tracks contract tender volumes across all modes, has declined by 25% compared to the previous year and 3.3% compared to the previous month.

Despite strong RFP activity at this time of year, truckload freight rates have decreased by 6.2% compared to rates six months ago. This relative softness in the market has led many shippers to question the sustainability of the cutthroat pricing that is currently being offered. The market's continued softening trend has also led to increased uncertainty about the direction of pricing in the transportation industry. Nevertheless, with strong RFP activity and competitive pricing, the industry is poised for continued growth and evolution.

The Short-Term Energy Outlook report from the EIA provides estimates for diesel pricing for March 2023, with real retail prices projected to decrease to $4.34 per gallon from February's price of $4.42. This represents a significant decline from the price of $5.37 in March 2021, which occurred before the pandemic. Additionally, in March 2020, at the beginning of the pandemic period, diesel prices were $3.19 per gallon.

Our mission is to revolutionize the shipping industry by addressing common pain points such as uncertainty in service, pricing, and technology. We strive to set a new standard in the industry by delivering exceptional service and utilizing cutting-edge technology to ensure a seamless delivery. Contact us to find out more information! General Inquiry:?[email protected] / Phone: 1-833-GOSHIPX