The freight market is volatile, and spot rates fluctuate daily, sometimes in real time, making it challenging for carriers to secure consistent, profitable loads. Many small fleets and owner-operators turn to load boards and brokers to find freight, but relying solely on the spot market is rarely a winning long-term strategy. Many fleets struggle to turn serious profits on spot-rate freight because the model often favors shippers and brokers over carriers.
So, how can trucking companies secure better, more consistent rates and avoid the roller coaster of load board pricing? The answer lies in establishing direct relationships with shippers. While spot freight has its place, direct shipper contracts provide stability, better margins and predictable revenue, which are critical for long-term success.
Understanding Spot Freight Rates and Why They Fluctuate
Spot freight rates are one-time pricing agreements for moving a load. The rates are determined by real-time market conditions and fluctuate based on capacity, fuel costs and supply chain disruptions. While spot rates offer flexibility, they lack consistency and make it difficult for carriers to plan for a steady income.
Several key factors influence spot freight rates:
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Market demand and capacity – If more freight is available than trucks, rates increase. If too many trucks chase too few loads, rates drop.
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Fuel prices and operational costs – Rising fuel prices directly impact freight rates, making long-haul loads less profitable when fuel costs surge.
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Urgency of the shipment – Last-minute loads often pay a premium, but shippers may still secure cheap rates through desperate carriers if capacity is low.
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Seasonality and freight volume – Peak seasons (e.g., produce season and holiday shipping) drive up rates, whereas slow seasons leave many carriers competing for limited freight.
While spot rates may occasionally work in a carrier’s favor, they are highly unpredictable. This makes it difficult for owner-operators and small fleets to plan fuel purchases, maintenance schedules and long-term financial decisions.
The Load Board Problem and Why Spot Freight Doesn’t Always Pay
Load boards are necessary for many carriers, especially those just starting out. Platforms like DAT, Truckstop and Convoy offer access to available freight but come with significant downsides:
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Rate compression – With hundreds of carriers competing for the same loads, brokers drive rates down, maximizing their profits while carriers accept minimal margins.
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Inconsistent freight – Loads posted on load boards are often last-minute, leftover or overflow freight. Shippers give their best lanes to contracted carriers, leaving the least desirable freight for the spot market.
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Lack of direct relationships – Since brokers and 3PLs control the freight, carriers rarely build direct ties with shippers, making it harder to negotiate better rates.
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Short-term thinking: Carriers that rely exclusively on spot market loads are at the mercy of rate swings, which prevent them from scaling their businesses.
