Bulk/Dump rates remain weak during Q2
July 21, 2011
Bulk/dump rates have shown a very weak recovery in pricing so far. Rates were actually negative during the first quarter of 2011, and initial indications are that they likely remaine negative during the April-June time. Our model is showing a gradual recovery in rates through the end of the year with a strong surge in 2012. Unfortunately, the growth is probably being overstated. With the overwhelming weakness in the construction markets expected to continue into 2012, the strong rate impact from HOS and CSA will likely be muted in these short-haul bulk applications.
After dropping 11.2% in 2009 rates rose 2.7% in 2010. Rate growth is likely to be only slightly positive this year (+1.1%). Rate should grow better during 2012 but it may be difficult to get to the 7.6% level that our model currently estimates. By the time 2013 comes around the rate environment should be much improved due to better freight growth. We look for rate growth of nearly 7%.
Click the link below to print a print-friendly page of the this analysis.Print Page
Use our chart creator to generate charts using the data that was used in this analysis.TruckGauge Chart Creator
This functionality is only available to Premium Members. Please upgrade your account to gain access to the data used in this analysis.Upgrade to a Premium Member