Spot market data from September and the most recent week in October reflect a relatively stable market.
Volumes contracted in September, while rates rose slightly. For the most recent week, rates were down slightly, however the market has settled into a period of stability.
Spot market volumes dipped in September
DAT Freight & Analytics reported spot market volumes contracted in September, which is usual for the month.
Van volumes were down 3% compared to August and 2% year over year. Reefer volumes fell 7% from August levels but were up 2% year over year. And flatbed volumes ticked up 1% for the month and were 9% stronger year over year.
Despite volume softness, rates increased slightly.
“The data shows that last month’s upward pricing pressure was not the result of demand, which is a trend worth watching as we approach peak season in October and November,” said Ken Adamo, DAT chief of analytics. “Freight imbalances and changes in available capacity drove rates higher in certain markets, as opposed to volumes.”
Van rates ticked up 2 cents/mile to $2.05 (all figures USD), reefer rates climbed 3 cents to $2.44 and flatbed rates were up a penny to $2.50/mile.
Contract rates were unchanged for van loads, while reefer rates were up 2 cents/mile to $2.76 and flatbed rates fell 2 cents/mile to $3.06.
“Carriers and brokers are in a tough spot when it comes to pricing,” Adamo said. “Rate increases have been modest and, in many cases, isolated to certain lanes and markets. For example, with less containerized freight landing at Southern California ports in September, fewer truckers were heading to destination markets for Los Angeles van freight — places like Stockton, Las Vegas, and Phoenix — and reduced capacity pushed spot rates higher in those markets. It’s healthier for everyone when rates rally on stronger shipping volumes.”
Spot rates fell in most recent week
For the week ended Oct. 10, spot rates slid slightly despite U.S. crackdowns on immigration.
Truckstop.com and FTR Transportation Intelligence report the spot market is stabilizing following solid gains the previous week. Reefer rates got their biggest boost in four weeks, while rates declined for dry van and flatdeck haulers.
“Overall rates continue to align with seasonal expectations, indicating that recent federal immigration enforcement in trucking has not yet significantly impacted market conditions,” truckstop.com reported. “As load postings decrease and truck postings increase, the Market Demand Index dropped to 94.1, its lowest point in four weeks.”
Credit: Source link
