February Freight Rates Slip Seasonally: DAT Freight Index
March 12 2019 - 1:57PM
Truckload freight volumes typically decline on the spot market in
February, but the 12 percent drop from January was sharper than
usual this year, according to the DAT Freight Index. Extreme winter
weather in many parts of the country contributed to the drop in
volumes, but February also followed an unexpectedly strong January.
Shippers accelerated freight movements in January in response to
Chinese New Year, which came early this year. The two-week holiday
often leads to a lull in overseas trade, and dry van and
refrigerated (“reefer”) freight rates and volumes fell throughout
the month of February. Volumes rose 3 percent compared to February
2018, however, which signals a rebound to come in the second
quarter.
These trends were revealed in the DAT Freight Index, a monthly
report that tracks demand for truckload freight transportation. DAT
re-indexed the metric based on data collected in DAT RateView,
based on $60 billion in annual transactions and an average of 3
million loads moved per month.
Spot rates drop sharply compared to 2018
Last year’s rates were elevated following the start of the
electronic logging device (ELD) mandate. As a result, this
February’s national average spot market rates did not compare well
to the previous year. Compared to January, though, the national
averages for spot market van and reefer rates lost a much more
modest 7 cents per mile, while flatbed rates were unchanged, month
over month.
“February is typically the slowest month for truck freight, but
spot market volume is holding up well this winter compared to
previous years,” said Mark Montague, DAT’s senior industry analyst.
“We expect trucking activity to gain momentum in March and
throughout the second quarter,” he added, noting that spot market
rates typically peak in June.
Contract carriers collect higher rates in 2019 on lower
volume
For contract carriers, volume slid lower for van, reefer, and
flatbed freight, compared to January. As a result,
shipper-to-carrier direct rates edged down month over month, but
prices were up sharply compared to February 2018.
Many carriers renegotiated their agreements with shippers last
year, but the new rates had not taken effect yet in February. The
year-over-year increase also includes a higher fuel surcharge,
which is tied to the retail price of diesel.
About the revised DAT Freight Index
For more than 10 years, DAT’s North American Freight Index has
provided monthly reports on spot market truckload demand, based on
posting data from the company’s load board service. Beginning in
February 2019, the Index is based on actual load counts from DAT
RateView, with an average of 3 million freight moves per month.
Rates cited also derived from DAT RateView. Spot market
information is based on transactions arranged by third-party
logistics (3PL) companies, while contract volume and rates are
arranged between shippers and carriers, with no intermediary.
About DAT Solutions
DAT operates the largest truckload freight marketplace in North
America. Transportation brokers, carriers and industry analysts
rely on DAT for market trends and data insights derived from 256
million annual freight matches and a database of $60 billion in
annual market transactions. Services include a directory of
companies with business history, credit, safety, insurance, and
company reviews. DAT Solutions LLC is a wholly owned subsidiary of
Roper Technologies (NYSE: ROP), a diversified technology company
and constituent of S&P 500, Fortune 1000 and Russell 1000
indices. www.DAT.com
Contact Eileen Hart Vice President, Marketing
& Corporate Communications DAT
SolutionsEileen.Hart@dat.com 503-672-5132
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