Spot truckload rates begin June by continuing to climb
National average spot truckload rates continued to climb after the Memorial Day week, according to DAT Solutions, which operates the DAT network of load boards.
A four-day work week would normally account for a 20% to 25% decline in the number of posted loads, but load availability was down just 9% for the week ending June 4, 2016—a good sign for the spot market. Load-to-truck ratios for vans, reefers, and flatbeds all increased as a result.
The national average spot van rate jumped 8 cents or 5.2% to $1.62/mile compared with the previous week. The reefer rate added 6 cents for a national average of $1.93/mile while the average flatbed rate was up 1 cent to $1.93/mile. The national average price of diesel rose 3 cents to $2.41/gallon, which pushed fuel surcharges up a penny for van and flatbed freight, and up 2 cents for reefers.
There’s often a slump in reefer freight availability right after Memorial Day. Things were still trending upward, however, particularly in the Midwest, with overall demand down just 7% and truck capacity off 18%. By region, spot rates for notable reefer markets include:
•West—Fresno CA, $2.13/mile, up 6 cents
•Midwest—Green Bay WI, $2.40/mile, up 4 cents
•South Central—McAllen TX, $1.89/mile, unchanged
•Southeast—Lakeland FL, $1.70/mile, down 17 cents
•Northeast—Philadelphia PA, $2.16/mile, up 3 cents
Reefer rates have fallen sharply in Florida. The steep drop in volumes in the central part of the state has affected pricing out of Miami: the average rate from Miami to Baltimore MD, a key lane, plunged 61 cents to $2.26/mile.
Flatbed load availability was off 14% while capacity fell 33%. That led to a 30% increase in the flatbed load-to-truck ratio, at 18.4 loads per truck.
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.
Load-to-truck ratios are a sensitive, real-time indicator of the balance between spot market demand and capacity. Changes in the ratio often signal impending changes in rates.
For complete national and regional reports on spot rates and demand, go to www.dat.com/Trendlines.