Load posting activity, spot rates on MembersEdge continue to drop

August 18, 2022

Special to Land Line

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The number of loads posted to the DAT MembersEdge load board fell for all three equipment types during the week of Aug. 7-13, following a seasonal pattern and generally lower activity on the spot market.

Dry van load posts decreased 6% week over week while van equipment posts fell 3%. The number of available loads were 37% lower year over year while truck posts were 8% higher compared to the same period in 2019, the last time the market was oversupplied with capacity for an extended period. The van load-to-truck ratio slipped from 3.6 to 3.3 as a national average.

 

MembersEdge average van haul rates

 

Hot weather and fresh produce shipments helped drive demand for refrigerated equipment, but the number of available loads fell 12% week over week. Reefer equipment posts rose 4%, and the reefer load-to-truck ratio fell a full point to 6.6. Load posts were down 46% lower compared to the same period in 2021.

Demand for flatbed equipment also continued to slide. Load posts decreased 7% compared to the previous week and were 51% lower year over year. Flatbed equipment posts fell 7% and the load-to-truck ratio was 13.3 as a national average, down from 15.0.

Rates slip

The national average van rate for loads moved last week was $2.57 a mile, down 2 cents versus the previous week, while the reefer rate was unchanged at $2.89 a mile. The average flatbed rate fell 5 cents to $3.00 a mile.

Spot rates are negotiated between the broker and carrier on a per-transaction basis. Subtracting a portion equal to a national average fuel surcharge, last week’s line-haul van and reefer rates were well below previous-year levels:

  • Vans – $1.95 a mile, 45 cents lower year over year.
  • Reefers – $2.26 a mile, down 52 cents year over year and nearly $1 lower than at the start of the year.
  • Flatbeds – $2.38 a mile, down 29 cents year to date with 28 cents of that decline happening since the end of May.

Market to watch: Michigan reefers

The U.S. Dept. of Agriculture lists Michigan among the top 10 states for apple, cabbage, celery, corn, bell pepper, potato, tomato and watermelon production, and the state is 13th in refrigerated volume for produce over the last five years.

The reefer rate from the Bay City/Saginaw region to Chicago averaged $3.53 a mile last week while loads to Hunts Point in Brooklyn, N.Y., averaged $4.28 a mile, nearly 35 cents higher than the July average but 34 cents lower compared to the same period last year.

DAT posts market updates every Wednesday or sooner if conditions change materially. Visit DAT.com/MarketUpdate for more information.

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DAT MembersEdge is a service provided exclusively to OOIDA members at a discounted price. LL