This Week in Freight

May 16, 2024

McAllen has become a market with some risk for the uninformed trucking companies who subcontract capacity. The average net margin per transaction is $278, meaning you get to keep that in profit. Compare $278 per shipment (pictured below) to the $338 per transaction premium for trucks purchased on the spot market (not pictured here), and you can see that gambling on tenders you can’t cover could easily cost $60 per transaction, should you need a truck from the spot market.

In this analytic, we’re using averages, so the cost penalties could easily top the averages depending on the time of day and the markets you tap for available capacity outside of McAllen, TX. This pinch typically occurs just before the rates shippers pay - bounce off the bottom. Practice prudence and count your trucks before accepting the tenders. Sometimes, rejected tenders come back as spot market opportunities where you can mark to market the rate it takes to cover those extra tenders. Make rational bets and use MPact.RatePro analytics to improve your odds of winning!

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. 

Learn more about MPact