Spot truckload rates accelerate while freight volume soars 17%

Spot truckload rates accelerate while freight volume soars 17%

Spot truckload freight volume jumped 17% during the week ending March 4, 2017, and rates responded with the first week-over-week increase in national averages in more than a month, according to DAT Solutions, which operates the DAT network of load boards.

Load-to-truck ratios were up sharply for all three equipment types:

•Reefer ratio—5.7, up 30%

•Van ratio—2.9 loads per truck, up 25%

•Flatbed ratio—34.6, up 19%

Despite several weeks where freight volume was up 100% year-over-year, spot truckload rates have been depressed by the number of trucks contract carriers were putting onto the spot market, particularly in the Southwest and West.

However, the overall number of available trucks dropped 4% the week ending March 4.

Reefer trends—After seven consecutive week-over-week declines, the national average reefer rate increased, picking up a penny to settle in at $1.88/mile. The number of spot reefer load posts was up 24% against a 14% drop in the number of available trucks.

One market to watch: Miami FL, where reefer volumes are surging perhaps because of an early growing season or imports from South America. Usually when there’s an uptick in loads and rates out of Miami, it means the inbound rate goes down. That wasn’t the case the week ending March 4 on the lane from Atlanta GA–Miami, which was up 15 cents to $2.58/mile.

Van trends—Outbound van load volume on the spot market rose 21% while truck posts closed the week down 4%. Prices rose on 56 of the top 100 van lanes the week ending March 4, led by Memphis TN ($1.90/mile, up 6 cents) and Atlanta ($1.89/mile up 4 cents). The national average van rate was up 4 cents to $1.66/mile.

In Chicago IL and Los Angeles CA, big gains in the number of available van loads this week may send rates higher.

Flatbed trends—Demand for flatbed trucks keeps building. Flatbed load posts climbed 13% while truck posts fell 5% the week ending March 4, which sent the flatbed load-to-truck ratio (34.6) higher for the fifth week in a row.

The national average flatbed rate was $2.02, up 6 cents.

Rates improved in major markets and especially out of port cities like Los Angeles ($2.24/mile, up 7 cents) and Houston TX ($2.10/mile up 6 cents).

Other lanes with gains:

•Baltimore MD–Springfield MA was up 25 cents to $3.44/mile

•Roanoke VA–Springfield added 21 cents to $2.82/mile

•Houston–Fort Worth TX paid 12 cents better on average at $2.36/mile

•Harrisburg PA outbound gained 5 cents to $3.07/mile

Rates are derived from DAT RateView, which provides real-time reports on prevailing spot market and contract rates, as well as historical rate and capacity trends. All reported rates include fuel surcharges.

For the latest spot market load availability and rate information, access www.dat.com/trendlines.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish