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Spot Market Loads Jump 74% Last Week, 2013 Rates and Activity Better Than 2012

Activity on the spot market skyrocketed the first full week of the year, according to new figures from the freight-matching service provider DAT, but rates lagged.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
January 15, 2014
Spot Market Loads Jump 74% Last Week, 2013 Rates and Activity Better Than 2012

 

2 min to read


Activity on the spot market skyrocketed the first full week of the year, according to new figures from the freight-matching service provider DAT, but rates lagged.

The number of loads available increased 74% Jan. 5 through Jan. 11, compared to the week before, while a 28.4% jump in capacity, pushed rates down. The increase in load volume for vans was even greater during the same time, nearly 85%.

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The average rate for vans fell 0.5% to $1.94 per mile, while flatbed rates lost 3.2% for $2.10 per mile with reefers losing 1.4% for $2.10 per mile. Rates also declined as load-to-truck ratios in all three categories posted strong double-digit increases.

After lopsided numbers and pent-up demand, due to winter weather, the average van rate out of Buffalo dropped 31 cents to $2.01 per mile and the Philadelphia rate dipped 8 cents to $1.84 per mile. Rates also fell across the West, notably outbound from Los Angeles at $2.08 per mile, a 10-cent drop. Columbus, Ohio, was among the few major Midwestern van markets that saw rates rise, adding 8 cents to an average of $2.13 per mile.

DAT also just released figures for December showing spot market freight availability compared to November, capped two quarters of unusually strong seasonal volume.

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“Typically, freight levels peak in the second quarter, fall in Q3 the third quarter and remain low through year end, but this year's pattern formed a high plateau through most of the second half," the company said.

Compared to December 2012, freight volume last month increased 45%, while continued, atypical demand set a sixth consecutive record for same-month freight volume, the highest level for any December on record, going back to 1996.

Load availability in December compared to November rose 19% for vans, 14% for refrigerated trailers and 1% for flatbeds.

When all of 2013 is compared to the year before, van freight volume increased 41%, reefer loads added 65% and flatbed freight increased 43%.

Rates on the spot market in December versus November rose 5% for vans, to a monthly average of $1.95 per mile, the highest observed since DAT began publishing spot market rates in 2009. Reefer and flatbed rates also increased, 3.2% and 3.8% respectively.

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Compared to December 2012, rates rose 15% for vans, 6.7% for reefers and 7.8% for flatbeds.

Reference rates are derived from DAT RateView and are for line haul only, excluding fuel surcharges, which increased on a month-over-month basis but declined compared to December 2012. 

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