TransCore's Canadian Freight Volumes End the Fourth Quarter Showing Promise for 2016
TransCore Link Logistics Freight Index for all Canadian and cross-border loads, as reported by Loadlink's Canadian-based customers, dipped in December. However, a favourable dip in equipment volumes led to tightening of the truck-to-load ratio.
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Year over Year
Over the last 12 months, freight volumes were tumultuous, experiencing lows very close to 2009's economic downturn. At the same time, truck volumes showed an all-time high in 2015. December 2015 volumes dropped 36 percent compared to December 2014. The high point for 2015 was seen in the first quarter of the year, followed by a steep decline in the summer months and closing out the year at the lowest point. December saw lows similar to volumes on the uptick during the first quarter of 2010.
Equipment capacity was up significantly by 44 percent year-over-year. Posted equipment increased in the first half of the year, reaching a record-high peak set in July 2015 with almost five trucks available for every load. The lofty levels continued in the second half of the year with slight declines in November and December.
Quarter over Quarter
Fourth quarter load volumes were down 31 percent compared to the fourth quarter volumes of 2014, and only down eight percent compared to the third quarter of 2015. Capacity was up 35 percent in the fourth quarter over of 2015 over the first quarter of 2015.
Month over Month
There was a marginal dip of two percent in load volumes month-over-month, which is an expected seasonal norm for the month given there are two fewer shipping days to observe Christmas and Boxing Day. Equipment availability declined by five percent tightening the capacity month-over-month.
Some factors that may have impacted the Canadian trucking industry for 2015 include:
- The weakening Canadian dollar throughout 2015
- Oil prices reaching the lowest levels since 2003
- The decline in commodity prices
It was an ambiguous year for truck and load volumes, although a general decrease in truck volumes was evident for the months of November and December across Canada. Interestingly, for the last three months of 2015, the Western Region showed notable increases in load volumes along with decreases in truck volumes.
TransCore's Canadian Freight Index accurately measures trends from roughly 5,500 of Canada's trucking companies and freight brokers, and includes all domestic, cross-border and interstate data submitted by Loadlink's customers.
Real-time and historical data on total truck and load volumes, as well as ratios in specific areas can be accessed from TransCore's Posting Index.
About TransCore Link Logistics
Looking for a better way to match available freight loads with trucks, TransCore Link Logistics in 1990 developed Loadlink, a load board connecting brokers, carriers, owner operators and private fleets in Canada to a real-time database of 15 million loads, shipments and trucks – the largest in the industry. The monthly Canadian Freight Index now defines the freight movement spot market. The company also provides its customers with dispatch solutions, ACE/ACI eManifest, Posting Index, Rate Index, credit solutions, factoring, online transportation job boards, mileage software and more.
TransCore Link Logistics is a unit of Roper Technologies, a constituent of the S&P 500, Fortune 1000, and the Russell 1000 indices. Roper designs and develops software (both software-as-a-service and licensed), and engineered products and solutions for healthcare, transportation, food, energy, water, education and academic research markets worldwide. Additional information about Roper is available on the company's website at www.ropertech.com.
TransCore Link Logistics
Karen Campbell-Jones, 905-795-0580