Spot market exits October with fewer available loads
The number of available spot market loads fell 3.6% during the week ending October 29, 2016, and the number of trucks was down 1.2%, according to DAT Solutions, which operates the DAT network of load boards.
For the month of October, load availability rose 2.8% and capacity was up 3.4% compared with September. Freight volume also exceeded 2015 levels for the month.
But rates did not catch up to the previous year’s highs. Week-over-week, average rates held firm for reefers ($1.90/mile), slipped 1 cent for vans ($1.65/mile), and was up a penny for flatbeds ($1.92/mile).
Load-to-truck ratios were mixed:
•Reefer L/T ratio—6.0. up 2%
•Van L/T ratio—2.7, unchanged
•Flatbed L/T ratio—14.4, down 8%
Average spot rates:
•Reefer—Reefer rates held steady at a national average of $1.90/mile
•Van—The national average van rate edged down 1 cent to $1.65/mile
•Flatbed—The national average flatbed rate added 1 cent due to rising fuel surcharges. The average rate was $1.92/mile
Reefer trends—Reefer load posts declined less than 1% the week ending October 29, while truck posts were down 2.5%.
Reefer volumes in California slumped, which hurt the national picture. There was much more regional movement with refrigerated freight than there was with van freight, though, so there’s evidence of a pre-Thanksgiving push.
Key reefer lanes from the week ending October 29:
—Ontario CA–Phoenix AZ rebounded 20 cents to an average of $3.03/mile.
—Green Bay WA–Des Moines IA added 20 cents to an average of $1.93/mile.
—Twin Falls SD-Los Angeles CA paid an average of $1.97/mile, 20 cents better than the previous week.
—Atlanta GA–Lakeland FL was off 11 cents to $2.76/mile.
—A lot of poultry ships out of northern Georgia this time of year, so those factors combined led to a 24-cent drop on the lane from Elizabeth NJ–Atlanta, which paid $1.54/mile the week ending October 29.
Van trends—Van load availability and truck posts both slipped 1%, which caused the load-to-truck ratio to remain at 2.7 loads loads per truck. Rates barely moved on a majority of lanes, but volumes rose significantly in Atlanta, Chicago IL, and Los Angeles as van freight volume continued to gain from west to east. Rates fell in major Northeast markets.
Top van markets by region:
—West—Los Angeles, $2.07/mile, up 2 cents
—South Central—Dallas TX, $1.51/mile, down 1 cent
—Midwest—Chicago, $2.01/mile, up 1 cent
—Northeast—Allentown PA, $1.95/mile, down 2 cents
—Southeast—Charlotte NC, $1.90/mile, up 3 cents after falling sharply in the previous week, in the aftermath of Hurricane Matthew
Flatbed trends—Flatbed load posts declined 8% the week ending October 29, as truck posts increased less than 1%.
At $2.48/gallon, the national average price of diesel was unchanged compared with the previous week.
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.
Get the latest rate trends at www.dat.com/trendlines/.