Truckstop.com is committed to helping the freight community better leverage market data. See below for the market update from the week of February 18-23, 2019.
What It Is
This graph shows the ratio of loads posted to trucks posted by equipment type.
Why It’s Useful
- There is a strong correlation between MDI and average spot market rates, as shown by comparing the bottom right and left charts over the previous four weeks.
What It Means for Carriers
- Rates have remained mostly flat and aligned with seasonality over the last four weeks.
- As seasonal loads start to pick up, so too will the MDI – projecting ~10% increase week over week.
- Estimated MDI shown by grey bars on top chart.
- As MDI increases, carriers have more loads available and more leverage in spot rate negotiations.
What It Means for Brokers
- While MDI is down ~25% from 2018, capacity remains relatively tight above the 5-year average.
- It will take a month or more of steady drops in MDI to declare the “capacity crisis” over.
- Watch your excess tender lead time/acceptance from shippers and lock down spot capacity early.