Freight Recession? August Truckload Volumes Suggest Otherwise
September 11 2019 - 08:00AM
There were more truckload shipments on the spot market in August
than any other month in 2019. Monthly volumes for dry van,
refrigerated (“reefer”) and flatbed freight peaked for each
segment, according to the DAT Truckload Freight Volume Index, which
reflects the change in the actual number of spot market loads moved
each month.
“The economy has certainly been a hot topic as of late,”
explained Peggy Dorf, Market Analyst with DAT Solutions, “but the
strong positive trends at the end of August gave us a lot to be
optimistic about as we head into the fall shipping season.”
August is often the top month of the year for spot market
volume, with late summer truckload demand boosted by back-to-school
season. Plus, supply chains traditionally kick into high gear for
Labor Day sales and Halloween inventory.
This year, shippers also rushed to move freight ahead of
Hurricane Dorian, which crashed into the Southeast coast in early
September.
While stronger volumes have yet to push truckload prices higher,
there were signs late in the month that rates were turning a
corner.
Van rates averaged $1.80 per mile in August, down 4 cents from
the July average. The August average was 34 cents below the
sky-high rates of August 2018. Much of the year-over-year decline
can be attributed to more available truckload capacity, as dry van
volume last month was 7.9 percent higher than a year ago. Compared
to July, van volume rose 2.1 percent.
Produce harvests in the Upper Midwest provided a lift for reefer
markets. Reefer volume in August increased 2 percent from July and
rose 6 percent compared to August 2018. Reefer rates dropped 4
cents in August from July, however, and as with vans, the national
average of $2.15 per mile was also 34 cents lower than last year’s
rate.
The increase in flatbed volume was modest at only 0.5 percent,
month over month. Flatbed shipments were up 7.7 percent compared to
August 2018, but declining oil prices last month led to cutbacks in
drilling activity. That contributed to lower flatbed rates, and the
national average slipped to its lowest point of the year at $2.19
per mile. That’s an 8-cent drop from July and 45 cents lower than
the August 2018 average.
“Spot market rates seem to have found the bottom in August, and
are poised for a rebound,” said Dorf. “Even if there’s disagreement
over the economic outlook, one thing is certain – truckload
capacity is still in high demand.”
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/5389d459-d4c1-4f0f-a183-89ae88587d5d.
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