Source DAT Trednlines at datcomtrendlines bull National average permile spot market brokerbuy rates are derived from DAT RateView Copyright 2016 DAT Solutions All rights reserved

Source: DAT Trednlines at dat.com/trendlines • National average per-mile spot market (broker-buy) rates are derived from DAT RateView. Copyright 2016 DAT Solutions. All rights reserved.

Load weakness, low diesel prices drive down spot rates

Van, reefer demand down; flatbed up slightly

Spot-market load availability fell 5.6% during the week ending Feb. 6, with the number of van and refrigerated loads dropping 17% and 12%, respectively, according to DAT Solutions, which operates the DAT network of load boards. 

The combination of fewer posted loads and 2.5% more capacity helped hold rates down compared to the previous week. Declining fuel prices also played a role: diesel prices fell 3 cents to a national average of just under $2.01 per gallon, an 11-year low. Freight brokers usually quote a one-time rate that includes both the line-haul rate and the fuel surcharge.

The national average van rate edged down 3 cents to $1.62 per mile, while the reefer rate fell 3 cents to $1.85 per mile. The average flatbed rate was unchanged at $1.85 per mile compared to the previous week.

  • Van load posts declined 14% while available capacity increased 4%, which sent the van load-to-truck ratio down 17%. The decrease from 1.7 to 1.4 loads per truck means there were 1.4 van loads for every van posted on the DAT network.
  • In the reefer market, there were 11% fewer loads while truck posts added 1%. The load-to-truck ratio declined 12% from 3.8 to 3.4 loads per truck.
  • The spot flatbed freight market found some traction, with load volume up 6% against a 1% increase in capacity. That yielded a 6% increase in the flatbed load-to-truck ratio, from 8.3 to 8.7 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 represent the number of loads posted for every truck available on DAT load boards, and the ratio is a sensitive, real-time indicator of the balance between spot market demand and capacity, DAT notes. Changes in the ratio often signal impending changes in rates.

For complete national and regional reports on spot rates and demand, visit dat.com/Trendlines. DAT Trendlines is a weekly report on spot market freight availability, truck capacity, and rates. 

TAGS: News
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