Important: What to Expect From Carriers in a Tightening Market

You may have already felt the squeeze on truck capacity as of late, occurring across the country. Besides freight demand hitting peak levels, spot market volumes, in particular, have peaked. With load-to-truck ratios high, rates have begun rising.

Though historically, costs have lagged volume, contract rates are expected to move in line with spot increases.

Demand Outweighs Supply

Two other significant events continue to threaten the supply and cost of trucks. The first is the ELD mandate, beginning December 18, 2017, which will effectively lower truck capacity, increasing cost and rates for shippers.  A 3 to 5% loss in capacity is expected, maybe more, as a result of this mandate. Further, the cost of installing the technology in fleets, required by the mandate, will push a few smaller carriers out of the market, further diminishing the availability

Operation Black and Blue

A protest that starts October 3, thru Sunday October 8th is the second factor likely to put a strain on truck supply and/or available drivers. Operation Black and Blue taking place in Washington D.C., Northern and Southern California, Seattle, and New York (with more locations possible) is led by drivers protesting the ELD mandate, and advocating for fair pay. Besides the high cost of installing the technology, they further protest the federal oversight the mandate will carry.  This protest could turn into a national strike

Mother Nature Has a Hand in the Market Shift

Adding more strain to the supply and demand levels are the two most recent hurricanes that have torn through Florida and Texas. Relief efforts have diverted trucks carrying supplies to help those in need.


What to Expect

In an effort to minimize issues with supply and cost, we want to stress the importance of communication between Traffic Management, Inc., customers, shippers, and receivers.  

We will do our best to:
  • Honor contract rates, or quotes given prior
  • Notify at time of tender if any rate needs to be adjusted
  • Will provide all alternative shipping options before turning away capacity.
  • Will offer increased transparency in our costs.
In addition, we ask that our customers provide:
  • Flexibility with pick-up dates/times
  • Ship date at time of rate request, if known
  • 48 hours’ notice or more for pick-ups


Please Note: Fewer carriers will be willing to lock in pricing for extended periods of time due to lack of capacity.