Spot freight

Freight Brokers: Where are we in the freight cycle?

The relationship between gross revenue and gross margins for freight brokerages is inversely related across much of the freight cycle. As spot market rates rise faster than paper (contract) rates, margins compress on higher load volumes. The opposite is also true: As spot rates fall faster than paper rates are rebid down, gross margins expand …

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ACT Research says trucking sector is in a recession

The trucking industry is officially in a recession, according to data tracked by ACT Research. After months of suggesting a pullback was possible, ACT President Kenny Vieth told FreightWaves on Thursday, July 11 that all metrics his firm tracks meet the technical definition of a recession – two consecutive quarters of negative growth. “Every freight …

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Lakefront: hedging trucking rate risk could raise public carrier valuations

Lakefront Futures & Options, a Chicago-based brokerage and trading firm with 16 regional offices, recently launched a Trucking & Freight Derivatives Group to help its clients use trucking freight futures and other risk management tools, including fuel hedging, spot market pricing, and contract or ‘forward’ rates.  Gary Saykaly joined Lakefront to head up the new …

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