Home Business News Spot Rates Tank in Freighting Industry, as Demand Slows

Spot Rates Tank in Freighting Industry, as Demand Slows

Spot Rates Tank in Freighting Industry, as Consumer Demand Slows

In another sign of weakening demand, freight companies are reporting a significant decrease in business in Q4, a season that is typically the busiest of the year. Spot freight orders, a type of at-will agreement that allows consumers to choose the best price from several bidders, are a strong indicator of who is moving inventory. At the moment, the spot rate for shipping goods sits at $1.83 per mile down from nearly $2.7 in January of 2022, according to DAT Solutions. By comparison, the contract rate, which is set up in advance is currently sitting at $2.47 per mile. 

Adam Satterfield, the chief financial officer of Old Dominion Freight Line, said in the company’s earnings call last week: “We believe this decrease in LTL tons reflects the overall softness in the domestic economy that has generally caused a decrease in demand for our customers’ products.” This sentiment is compounded by a myriad of inconsistencies related to a battered supply chain.

In regards to the stockpiling of supplies, Aman Advani, co-founder and CEO of Ministry of Supply Inc., said in an interview with the Wall Street Journal: “We were holding kind of two winters’ worth of stuff in, like, August… Our fall-winter line, a lot of pieces arrived two months early. Our fall-winter line last year, a lot of pieces arrived six months late.”

In other news, TP-Link has announced the release of three new Deco mesh wireless networks and access points: The Deco X50-PoE AX3000, the Deco X50-Outdoor AX3000 and the Deco PX50. The new additions feature a weatherproof access point, a unit powered by the ethernet and a Powerline mesh system. These new systems are designed to provide Wi-Fi to indoor and outdoor settings with thick walls or complex layouts.


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