MembersEdge load posts fell 16% last week; load-to-truck ratios declined

The total number of load posts on the MembersEdge load board dropped 16% last week, from 2.9 million to 2.4 million loads on the network during the week of July 17-23.

Dry van load posts fell 14.8% week over week and were 36% less than the same period last year. The number of reefer load posts declined 17.3% compared to the previous week and were down 44% year over year, while flatbed load posts decreased 16.6%, a 39% decline year over year.

Capacity rose 1.7% to 423,000 trucks posted, a high mark compared to the same period in other years. Dry van equipment posts increased 1.5% compared to the previous week and reefer equipment rose 1.9%. Flatbed equipment posts increased 2.1%.

Load-to-truck ratios continued to fall.

• Vans – 3.3 loads per truck as a national average, down from 3.9 the previous week.
• Reefers – 6.0 loads per truck, down from 7.9.
• Flatbeds – 19.03 loads per truck, down from 23.3.

A lower ratio usually means better pricing power for the broker or shipper, and indeed national average spot rates dipped.

• Vans – $2.66 per mile, virtually unchanged from the previous week.
• Reefers – $2.92 a mile, down 1 cent.
• Flatbeds – $3.18 a mile, down 1 cent.

Spot rates are all-in rates and do not include a separate fuel surcharge. As a guide, the current average fuel surcharge amounts are 70 cents a mile for van freight, 76 cents a mile for reefers, and 84 cents a mile for flatbed freight.

For all the talk of an economic recession, there was no freight recession during the first half of the year, and certainly not in the last quarter. Truckload volumes were strong in April, May and June as they have been this month as well. However, an abundance of trucks on the spot market plus high retail prices for diesel fuel have led to significant declines in rates since January.

Markets to watch: Gulf Coast ports for flatbed freight

Average outbound flatbed rates were up in Houston and New Orleans compared to the previous week. Tonnage at Port Houston’s general cargo facilities was up 16% in June and 24% for the first half of the year as compared to last year. Steel imports were up 33% for the month and 102% year-to-date – oil and gas drilling is driving that traffic.

In Houston, spot flatbed rates increased 6 cents to an average of $3.77 a mile last week. In neighboring New Orleans the average outbound rate rose 17 cents to an average outbound rate of $4.20 a mile.

Elsewhere, the flatbed freight market continued to slow. Flatbed load post volumes are within 3% of 2020 levels and are 10% lower than this time in 2018. Equipment post volumes hit an all-time high, surpassing the previous record set in late 2019.

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

Listen to Land Line Now every Wednesday for the latest spot-market update.

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