This Week in Freight

May 2, 2024

Reefer truck capacity is constrained, providing 3PLs and brokers an opportunity to book incremental improvements in earnings. To generate positive cash flow, transaction costs should be balanced, so an increase in net margins results in positive cash flow. Purchasing spot reefer capacity comes at an average premium of $186 per transaction, indicating that negotiating contract capacity is the best way to improve cash flow. Recent improvements in net margin are due to cost controls. This usually occurs at the bottom of a rate cycle, just before an increase in demand causes sell-side rates to rise. We need to wait to see when that inflection in demand will occur.

What is McLeod MPact?

MPact is a rate analysis tool for McLeod customers. Over 1,000 carriers, brokers, and 3PLs anonymously contribute to this data on a daily basis. 

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