Last week we saw freight volumes remained strong while economic data remained positive. Consumer confidence and consumer spend continued to climb. The manufacturing sector in the USA also exceeded expectations with the ISM manufacturing index came in at 59.3%, the highest value in two years.
There are many market indicators enforcing our opinion that the OTR freight spot market rates will continue to be strong to the end of 2020.
The above all point to the freight market volume demands continuing to squeeze truck capacity across the nation and freight spot rates to be on the up.
As the freight market rallies, the markets with the largest gains last week included Savannah, Georgia, Ontario, California, and Laredo, Texas. The markets with the largest declines last week were Houston, Miami, and Fresno, California.
The week ahead of us begins the holiday season
We expect widespread freight spot rate pressure pushing rates up with peak season rate volatility. Following a small decline in market pressure over the last few weeks, West Coast markets began to tighten once again last week on the back of the surge of imports prior to the holiday shopping season, with carrier freight rate rejections to freight offers out of Los Angeles increased once again last week.
The container import market remains extremely strong and market indicators are showing this surge may continue past 2020 into 2021 and may pass further than February 2021 with overseas manufacturing reporting orders heading to February 2021.
Thank you so much for being with us today, have a wonderful day, and stay safe.