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Rates Fail to Follow Increased Load Posts on Spot Market

The number of posted loads on the spot market jumped 5.7% for week ending Oct. 3, as shippers rushed to move inventory before the end of the quarter while available truck capacity fell 4.5%, but the changes were not enough to advance rates.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
October 7, 2015
Rates Fail to Follow Increased Load Posts on Spot Market

 

2 min to read


The number of posted loads on the spot market jumped 5.7% for week ending Oct. 3, as shippers rushed to move inventory before the end of the quarter, while available truck capacity fell 4.5%, but the changes were not enough to advance rates.

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New figures from DAT Solutions, which operates the DAT network of load boards, show the national average truckload van spot market rate dipped 1 cent to $1.74 per mile because of a decline in the average fuel surcharge. However, line-haul prices actually rose outbound from Los Angeles, Dallas and other key markets.

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Van load availability rose 11% while truck capacity fell 2.9% compared to the previous week. The resulting national van load-to-truck ratio increased 14.3%, meaning there were 2.0 available van loads for every truck posted on the DAT network.

Flatbed load availability rose 3.1% and truck posts were down 7.9%, pushing the load-to-truck ratio for flatbeds up 12% to 11.5 loads per truck. The national average flatbed rate was unchanged at $2.03 per mile, the same three out of the past four weeks.

Refrigerated load volume increased by 2.7% and available truck capacity fell 5.5%. As a result, the national reefer load-to-truck ratio increased 8.7% from 4.3 to 4.6 loads per truck. The national average reefer rate was unchanged at $2.01 per mile.

The national average price of diesel increased 1 cent to $2.49 per gallon last week. All reported rates include fuel surcharges.

The load-to-truck ratio is a sensitive, real-time indicator of the balance between spot market demand and capacity. Changes in the ratio often signal impending changes in rates, according to DAT.

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Despite these steady or lackluster freight rates, depending on how you look at the situation, there are some places that are no doubt better than others to find loads. A few days ago, DAT compiled a list of the five best places to find one fast when it comes to van freight, including in Los Angels, which at the time had an outbound load-to-truck ratio of 3.1 to 1. You can read more about this in the DAT blog.

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