Spot Freight Rates Drop Despite More Available Freight
November 20, 2013
While there was more freight to haul over the past week on the spot market, freight rates moved little, according to the freight matching service provider DAT.
It reports overall spot market loads increased 2.9% Nov. 10-16, compared to the previous seven days, while spot market capacity fell 1.3%.
Average rates for both vans and flatbeds were unchanged during the period while it fell 1.4% for reefers.
The national average rate for vans was $1.86 per mile with fuel, 3 cents higher than November 2012 and 2 cents ahead of October 2013.
Flatbed rates stabilized last week at $2.05 per mile as a national average, after having dropped 6 cents the prior week. This is the lowest level out of the last four-weeks.
The national average for reefer rates decreased 3 cents to $2.07 per mile overall, despite a large jump in load volume as the supply chain continues to gear up for the holidays.
During the same time load-to-truck ratios improved 4.2% for vans, 4.4% for flatbeds and 8.3% for reefers.
Comparing last month to the month before rates in all three sectors were down while the only sector posting a gain in October compared to the same time in 2012 was vans, increasing 4%
Lower freight rates and cargo levels are nothing unusual this time of the year, according to DAT, because now marks the beginning of the “slow season” for some operations, but on its it talks about ways to deal with this time of the year.