Data recently issued on the DAT One network provided to LM by DAT Freight & Analytics highlighted some mixed signals for truckload spot market posts, for the week of January 26-February 1.
DAT observed that spot rates declined even though there was an uptick in demand for trucks.
“Demand for trucks on the spot market typically rises at the end of a month as shippers clear their docks,” the company said. “Indeed, the total number of loads posted on DAT One increased by 4% in the final week of January compared to the previous week. However, the total number of trucks posted rose almost 6%, and weekly average rates declined (All rates are weekly average linehaul spot rates net fuel).”
The weekly breakdown for van loads, van equipment, load-to-truck ration and linehaul rates for Dry Vans, Reefers (refrigerated), and flatbeds provided by DAT is below:
Dry Vans:
- Van loads: 1,010,734 up 4.5% week-over-week;
- Van equipment: 168,858, up 6.2%; and
- Linehaul rate: $1.72 net fuel, down 4 cents
Reefers:
- Reefer loads: 419,025, down 11.8% week over week;
- Reefer equipment: 49,109, up 5.5%; and
- Linehaul rate: $2.04 net fuel, down 7 cents
Flatbeds:
- Flatbed loads: 682,742, up 16.9% week over week;
- Flatbed equipment: 29,564, up 5.0%; and
- Linehaul rate: $2.00 net fuel, down 1 cent
DAT iQ Industry Analyst Dean Croke observed that DAT’s Top 50 van lanes by loads moved last week averaged $2.03 a mile (net fuel), representing a 5 cent decrease for the second week in a row, while up 31 cents compared to the national 7-day rolling average rate.
Croke added that the average spot reefer rate plunged last week as temperatures warmed and demand for temperature-controlled equipment eased, adding that reefer demand typically declines through the end of April when harvests bring tighter capacity.
Looking at flatbed rates, Croke said the national average flatbed linehaul rate has been within 3 cents of $2 a mile for the last 11 weeks.
“The 52-week rolling average is $2.01 a mile,” said Croke. “The 104-week rolling average is… $2.02 a mile.”
DAT Chief of Analytics Ken Adamo recently told LM that things got off to a good start through the first three weeks of January, with the expectation that activity will slow down in February.
What’s more, he added that if the further peak-related activity could be stretched into late January, it helps to shrink what he called the February and early March lull, in turn, helping to better set up the market over the entire first half of the year. And if the market can go one more week, possibly two, before the bottom falls out on rates, Adamo said rates are only going to probably to fall and equalize for four or five weeks before March starts to give seasonality back.
In looking at 2024 on balance, Adamo said it was “OK,” with the second half of the year showing some promising signs.
“It was a pretty-to-very disappointing first third of the year, and a very surprisingly flat middle third,” he said. “And then I think the last third of the year was optimistic, we were at least starting to see visions of what 2025 could look like. But if you are a carrier, I don’t know that you noticed much difference from January 1-December 31. Maybe there was more optimism at the end of the year, but if you’ve been in the game a while, it is hard to parse optimism from seasonality. Many of the carriers I’ve talked to want to trust—but verify—that the recovery is happening.”
