DAT: Truckload Spot Rates Slip Seasonally, But Uncertainty Looms
August 09 2019 - 4:21PM
Spot market truckload rates retreated in July, despite an increase
in freight volume. Shipments of dry van freight – the most common
truckload shipment – rose 6.8 percent in July compared to June,
according to the DAT Truckload Volume Index, which reflects the
change in the actual number of spot market loads moved each month.
The national average van rate declined seasonally from June to
July, however.
“That trend is not uncommon,” said Peggy Dorf, Market Analyst
with DAT Solutions.
“July often marks the beginning of a downward turn for truckload
rates,” she explained. “That has less to do with volume than the
fact that, after the close of Q2 and the end of the Fourth of July
holiday, shippers feel less urgency to get deliveries made by a
specific date.”
While those trends may have been predictable, the announcement
of new tariffs on Chinese imports beginning Sept. 1 could disrupt
typical seasonal trends in late summer.
“There was an uptick in activity at the end of July, and that
could carry over into August,” said Dorf. “Shippers may rush to
move imports ahead of the new tariffs, which could disrupt what
would normally be the summer doldrums for pricing.”
The national average van rate in July was $1.84 per mile, which
includes fuel surcharges. While that was a 5-cent decline from the
June average, it was otherwise the highest monthly average for vans
since March. Year over year, the national rate was 43 cents lower
than the historic highs set in July 2018, even though volume this
July was up 13 percent compared to last year.
Harsh weather curtailed and/or delayed many produce harvests
this year. That disrupted refrigerated (“reefer”) shipments, but
improved yields out of California contributed to an 8.7 percent
increase in reefer volume from June to July. Reefer rates averaged
$2.19 per mile nationally, a 6-cent drop from June but otherwise
the highest monthly average since February. The July 2019 average
was down 41 cents from July 2018, even though volume increased 12
percent compared to last year.
Flatbed volume also rose in July, up 6.6 percent month over
month, although the national average flatbed rate fell to $2.27 per
mile, 3 cents below the June rate and 50 cents below the sky-high
average of July 2018. Compared to last year, flatbed volume was up
18 percent.
“Truckload pricing followed normal seasonal patterns in July,
despite uncertainty in some segments of the economy,” said Dorf.
“Moving forward, the new tariffs are a wild card, on top of the
potential risks to supply chain operations during hurricane
season.”
About the DAT Truckload Freight Volume
Index
The DAT Truckload Freight Volume Index reflects the change in
the number of loads with a pickup date during that month; the
actual index number is normalized each month to accommodate any new
data sources without distortion. Baseline of 100 equals the number
of loads moved in January 2015, as recorded in DAT RateView, a
database of rates paid on an average of 3 million loads per month.
DAT national average spot rates are derived from RateView and
include only over-the-road lanes with lengths of haul of 250 miles
or more. Spot rates represent the payments made by freight brokers
and 3PL to the carriers.
About DAT
DAT market trends and data insights are derived from 256 million
annual freight matches and a database of $65 billion in annual
market transactions. Related services include a comprehensive
directory of companies with business history, credit, safety,
insurance, and company reviews; broker transportation management
software; authority, fuel tax, mileage, vehicle licensing, and
registration services; and carrier onboarding.
Founded in 1978, DAT Solutions LLC is a wholly owned subsidiary
of Roper Technologies (NYSE:ROP), a diversified technology company
and constituent of the S&P 500, Fortune 1000, and Russell 1000
indices. www.DAT.com
Media ContactEileen Hart, Vice President, Marketing &
Corporate CommunicationsDAT
Solutionseileen.hart@dat.com503-672-5132
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/549c7687-d216-4795-8255-b8f59f6be0b4
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