2018 OTR Market Snapshot

1. 2018 OTR Market Outlook
© 2018 Convoy

2. ● Volatile Q4 led to rising prices across the country
○ Weather events (hurricanes in the South, fires in the West, snow in the Midwest) combined with
the ELD Mandate generated a decreasing truck supply through the quarter
■ December truck shortages in the marketplace were more extreme than EOY levels and
lingered into early January
● Year-over-Year Trends: Dec ‘16 to Dec’17
Market Snapshot - 2017 Lookback
Spot Market Loads:
+86% YoY
Van RPMs:
+22% YoY
Reefer RPMs:
+24% YoY
Load to Truck Ratio:
+138% YoY
*Data from DAT

3. Market Snapshot - Dry Van Trends
Key Takeaway:
Unstable primary freight
acceptance could carry
into 2018, find ways to
innovate and reduce
spend on spot.
*Data from DAT
Feb 2018: Van load posts
declined 6% while truck
posts rose 1%. That caused
the load-to-truck ratio to
fall 7%, from 7.2 to 6.7
loads per truck. That's still
almost three times as high
as the ratio at this time last
year.

4. Market Snapshot - 2018 so far
National DAT L/T Ratios
● Load/Truck ratios and spot rates remain above
previous year in most areas around the
country
○ Dry Van ratios hit a monthly high of 9.9 in
January (load postings increased 16%, truck
postings 6%)
● Cooling within our marketplace through the
first two months of the year
○ Shipment portfolios is weighted towards the
West, where demand has been light in the
first quarter

5. 2018 Market Outlook
National Spot Rate
Trends:
National Van Rates break
records in January with
rates $0.59 cents higher
than prior year.
Key Takeaway:
Volatility and uncertainty
could impact the volume
of freight falling to spot
this year.
*Data from DAT
Dry Van

6. Market Snapshot - What to Expect in 2018
Holiday VolatilityProduce Seasonality
ELD Enforcement &
Driver Shortages
ELD enforcement begins April 22nd
ELDs have increased sensitivity
to transit times and facility
loading/unloading
Driver shortages could result in more
drastic market fluctuations
Southeast Produce will begin in March
with peripheral effects in MW/SC
California & Arizona in the late Spring
Northwest potatoes, trees & onions in
Q4
Memorial Day & July 4th surge will drive
large increases in demand within our
shipper network
Q4 Weather along with Thanksgiving &
Christmas volume ramp up could
produce additional supply volatility