DAT Solutions: Signs that spot rates will rise

Special to Land Line | Wednesday, May 25, 2016

Spot truckload freight volume and available capacity both fell during the week ending May 21, reported DAT Solutions, which operates the MembersEdge load board.

However, load-to-truck ratios increased and diesel prices are up sharply – an indication that spot truckload rates may pick up soon.

Let’s take a look at the latest trends:

Loads, capacity down: The number of spot market load posts fell another 4 percent due to a 6 percent drop in flatbed load volume. The number of posted van loads was steady while reefer load posts were up 2 percent.

Tighter capacity helps L/T ratios: Fewer truck posts compared to the previous week helped boost load-to-truck ratios. The van ratio gained 1 percent, to 1.7 loads per truck; the reefer ratio increased 18 percent to 3.3; and the flatbed ratio was up 5 percent to 15.4. Load-to-truck ratios measure the number of loads posted for each available truck on the DAT network.

Fuel surcharges up: Diesel priceswere up sharply last week with the national average retail price gaining 6 cents to $2.36/gallon. Expect an increase in the average fuel surcharge this week—and a corresponding rise in spot rates.

National average spot TL rates:

  • Van: Down 1 cent to $1.53/mile
  • Reefer: Down a penny to $1.87/mile
  • Flatbed: Unchanged at $1.91/mile for the third week in a row

Reefer trends: Rates rose on more than half of the highest-volume lanes. The high-dollar market in each region:

  • West: Los Angeles, $2.41/mile, unchanged
  • Midwest: Grand Rapids, Mich., $2.39/mile, up 2 cents
  • South Central: McAllen, Texas, $1.88/mile, down 1 cent
  • Southeast: Miami, $2.06/mile, unchanged
  • Northeast: Philadelphia, $2.16/mile, down 9 cents

Atlanta and Lakeland, Fla., are still No. 1 and 2 for reefer load posts on DAT MembersEdge, though volumes slipped a bit in Central Florida.

Van trends: Volume was up in Houston, the country’s No. 2 market for van load posts on DAT MembersEdge, after Atlanta. Chicago’s average outbound rate was down 2 cents to $1.71/mile, and rail competition is killing the lane from Chicago to L.A.: the average spot van rate lost another 14 cents to just $1.05/mile.

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/Trendlines or join the conversation on Twitter with @LoadBoards. Look for more information about load availability and rates at OOIDA’s MyMembersEdge.com, and listen in each Wednesday to Land Line Now for more talk about where to find profitable freight.

Copyright © OOIDA

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