DAT-RTOW-Bars-1-12-2019.jpg

Spot rates slump as truck capacity comes back strong

Jan. 16, 2019
The number of available trucks on the spot truckload freight market jumped 77% during the week ending Jan. 12, well ahead of the 9% gain in available loads.

The number of available trucks on the spot truckload freight market jumped 77% during the week ending Jan. 12, well ahead of the 9% gain in available loads, said DAT Solutions, which operates the DAT network of load boards.

The surge in capacity and less urgency on the part of shippers knocked down national average rates for dry van, refrigerated, and flatbed freight:

  • Van: $2.05/mile, down 6 cents
  • Flatbed: $2.42/mile, down 4 cents
  • Reefer: $2.42/mile, down 5 cents

Lower fuel surcharges also contributed to the decline in rates. The average price of on-highway diesel was $2.97 per gallon on Jan. 14, down 4 cents compared to the previous week.

Van trends: Van truck posts on DAT load boards surged 83% while load posts declined 5%. The van load-to-truck ratio dropped 48% from 8.9 to 4.6 loads per truck. Rates were lower on 84 of the top 100 van lanes by volume. Average outbound van rates from Philadelphia (-6.4%), Stockton (-5.6%), Los Angeles (-6.6%), and Seattle (-6.5%) were all trending lower; notably, these markets handle ocean cargo.

Flatbed trends: Flatbed load posts on DAT load boards increased 44% last week while truck posts surged 94%. As a result, the national flatbed load-to-truck ratio fell 26% from 33.7 to 25.1 loads per truck.

Reefer trends: Reefer capacity bounced back last week as truck posts jumped 57%. The number of load posts declined 3%, however, which caused the reefer load-to-truck ratio to fall 38% from 9.8 to 6.1 loads per truck.

Average spot rates were down on 62 of the top 72 reefer lanes, and average outbound rates fell sharply in many major markets:

  • Los Angeles: $3.03/mile, down 18 cents
  • Atlanta: $2.60/mile, down 14 cents
  • McAllen, Texas: $2.33/mile, down 15 cents
  • Dallas: $2.20/mile, down 19 cents
  • Philadelphia: $2.96/mile, down 11 cents
  • Chicago: $2.93/mile, down 13 cents

Nogales, a big gainer the previous week, saw lane-rates drop significantly:

  • Nogales-Dallas: $2.51/mile, down 86 cents
  • Nogales-Brooklyn: $2.56/mile, down 51 cents
  • Nogales-Los Angeles: $2.53/mile, down 47 cents

Volumes will likely continue to trend at lower levels until produce season breaks in southern California, Florida, and other key markets.

DAT Trendlines are generated using DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $60 billion in freight payments.

DAT load boards average 1.2 million load posts searched per business day.

About the Author

Fleet Owner Staff

Our Editorial Team

Kevin Jones, Editorial Director, Commercial Vehicle Group

Cristina Commendatore, Executive Editor

Scott Achelpohl, Managing Editor 

Josh Fisher, Senior Editor

Catharine Conway, Digital Editor

Eric Van Egeren, Art Director

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Uniting for Bold Solutions to Tackle Transportation’s Biggest Challenges

Over 300 leaders in transportation, logistics, and distribution gathered at Ignite 2024. From new products to innovative solutions, Ignite highlighted the importance of strong...

Seasonal Strategies for Maintaining a Safe & Efficient Fleet Year-Round

Prepare your fleet for every season! From winterizing vehicles to summer heat safety, our eBook covers essential strategies for year-round fleet safety. Download now to reduce...

Streamline Compliance, Ensure Safety and Maximize Driver's Time

Truck weight isn’t the first thing that comes to mind when considering operational efficiency, hours-of-service regulations, and safety ratings, but it can affect all three.

Improve Safety and Reduce Risk with Data from Route Scores

Route Scores help fleets navigate the risk factors they encounter in the lanes they travel, helping to keep costs down.