By Jonathan S. Reiskin, Associate News Editor
This story appears in the June 28 print edition of Transport Topics. Click here to subscribe today.
TransCore Holdings, a major electronic load board operator, reported a tripling of activity across its U.S.-Canadian network in May, calling it the busiest May the company has seen in 10 years.
A company executive said shippers needing refrigerated trucks to haul produce out of California is a major reason for the surge, and that has replaced demand for flatbed trucks, which dominated April activity.
Separately, a freight broker in Illinois said there is an incremental pickup in the economy, but brokers are using load boards more these days because trucks are becoming harder to find.
“Part of the gaudiness of the 216% increase from last May is a function of the very weak activity last year, but there is some real volume out there. This was the largest number of load postings for trucks we’ve seen in 10 years for a May,” said David Schrader, TransCore senior vice president for freight services.
While the year-over-year acceleration is very eye-catching, Schrader said the sequential monthly activity is more commonplace.
“The actual activity from April was higher than May on an absolute basis. All of May and June, so far, are flattening, but at a healthy level of freight,” Schrader said, adding that TransCore aggregates its findings from three separate U.S. and Canadian load boards.
The May 2009 to May 2010 tripling refers to loads posted by brokers or shippers looking for trucks, he said.
“We’re busier last year than this year, no question,” said Alec Gizzi, president of JBS Logistics, Glendale Heights, Ill.
Gizzi also is vice chairman of the Transportation Intermediaries Association and talks frequently with other freight brokers.
“There’s a slight uptick in the economy, but our inventory [of loads] has not even doubled. Load boards get involved when there’s an imbalance of some kind, and there’s a truck shortage now, with lots of trucks having been parked or carriers gone out of business,” Gizzi explained.
Gizzi agreed with Schrader on the need for trucks by agricultural shippers but also pointed to a restocking of inventory.
“This was a long, severe recession, so inventories across the nation were depleted to almost zero,” Gizzi said.
