FMCSA Reaches Settlement With Three Trucking Associations

"CSA is a safety-critical program that helps to reduce commercial motor vehicle-related crashes and save lives,” said FMCSA Administrator Anne S. Ferro. “Through this settlement agreement, we addressed the concerns raised by petitioners without compromising the CSA program and its safety benefits.” http://csa.fmcsa.dot.gov/whats_New.aspx#30184

SPECIAL TRUCKLOAD RATE REPORT

Brokers Pay More Than Shippers in 20% of Key Lanes
By Mark Montague, Industry Pricing Analyst, Courtesy TransCore Trendlines

Although February is typically a slow month for spot market freight, a surge in demand drove broker "buy" rates above the shipper's direct contract rate for dry vans in almost 20% of major lanes with a length of haul above 250 miles. The pricing bump included a 2.5% increase in the national average line haul rate for vans, month over month.

Price increases may have been driven by pent-up demand following January's severe weather, combined with growing truckload capacity constraints. Market conditions in February even began to look surprisingly similar to June, when brokered truckload freight movements in about a third of the major U.S. lanes commanded a premium compared to shippers' contract rates with carriers.

As a national average, contract rates exceeded spot market rates by 14% for the month of February, a gap that typically covers broker commissions and fees. These comparisons are based on line haul rates, not including fuel surcharges. [Note: Comparisons are based on average spot market rates from February but contract rates are from January. February contract rates, due for release on March 23rd, are not expected to change significantly.]