Spot market is technology being adopted by the trucking industry and it could save the driver shortage currently being experienced in the United States. Spot market is technology similar to apps like Uber and Lyft but for truckers. The trucking industry is a key indicator of the American economy. When shipments and truck loads are delayed for various reasons, the ripple effect is felt in grocery stores, gas stations, hospitals and more.
Spot market prioritizes participants to negotiate an individual transaction for each load. There was a dramatic increase in spot freight market rates following the COVID-19 outbreak and subsequent shutdowns in February 2020. These past two years have been an indication of progress towards improvement and hopefully the end to our national truck driver shortage. Shippers will soon no longer have to compete with high prices to get truck drivers to move their products. This will in turn also positively impact the supply chain operations as well as the overall economy.
With that being said, there are many other factors that contribute to the overall economy of the world. Wars, a global pandemic, border closures and food shortages will all play into whether or not we are heading into a recession here in the near future.