Spot loads, rates weaker than expected

Spot loads, rates weaker than expected

The number of available loads on the spot truckload freight market rose 7% during the week ending July 16, but that's still well below the 20% expected following a holiday-shortened workweek, according to DAT Solutions, which operates the DAT network of load boards.

Truck posts increased 37% and load-to-truck ratios dropped for all equipment types:

  • Van L/T ratio: 2.6 (down 26%)
  • Reefer L/T ratio: 4.7% (down 27%)
  • Flatbed L/T ratio: 13.4% (down 14%)

The average spot rate for reefer freight fell 4 cents to $1.98/mile during the week, still a penny higher than the national average in June. The van rate was $1.66/mile, also 4 cents higher than the June average. The national average flatbed rate gained 4 cents to $1.85/mile.

VANS: The number of van load posts gained 3% and truck posts rose 38% as outbound van rates declined in major markets. The highest average outbound van rates by region:

  • West: Los Angeles, $2.16/mile, down 8 cents
  • Midwest: Chicago, $1.91/mile, down 2 cents
  • South Central: Dallas, $1.58/mile, down 2 cents
  • Southeast: Charlotte, N.C., $2.07/mile, down 5 cents
  • Northeast: Allentown, Pa., $2.08/mile, down 2 cents

One bright spot, according to the DAT report: Memphis, where rates held steady at an average of $1.94/mile (up 1 cent). The Memphis-Columbus lane jumped 15 cents to $2.03/mile; that lane is associated with retail freight so this could be a sign of good things to come.

REEFERS: The number of reefer load posts dropped 4% while truck posts increased 32% for the week. Again, load activity was below expectations, DAT noted. 

Rates fell in major regional markets in the Southeast and West. The average outbound rate from Los Angeles fell 9 cents to $2.58/mile; Sacramento, Ontario, Fresno, and Twin Falls all had lower rates. 

On the Mexican border, the average outbound rate from McAllen, Texas, gained 7 cents to $1.82/mile and edged up on most high-volume lanes. Nogales, Ariz., meanwhile, fell 15 cents per mile with Nogales-Los Angeles plunging 39 cents to $1.67/mile.

FLATBEDS: Flatbed load availability added 18% and capacity increased 37%. National average flatbed rates recovered 4 cents to $1.89/mile, still 6 cents below the average rate for June.

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 DAT.com.

TAGS: News
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