BLOOMINGTON, Ind. — While fireworks created spectacular scenes across the U.S. over the Independence Day holiday, spot market freight rates and volumes mostly fizzled.
Broker-posted refrigerated and dry van rates in the Truckstop system fell during the week ended July 7, and load activity dropped sharply.
Large rate decreases are typical for the van segments during the holiday week, although the decreases were smaller than they were during the same week in either 2021 or 2022, a Truckstop news release noted.
Flatbed rates were the lone area of strength with an increase after five straight weeks of decline.
Loads available
Total load activity fell nearly 32% to the lowest level since Thanksgiving week last year. Volume was about 49% below the same week last year and almost 39% below the five-year average. Loads fell sharply in all regions. Truck postings declined nearly 22%, and the Market Demand Index — the ratio of loads to trucks — fell to its lowest level since Thanksgiving week last year.
Total rates
The total broker-posted rate declined nearly 2 cents, which is a strong showing for the July 4 holiday week. The relative resilience stems from smaller than typical declines in van rates and a rare increase in flatbed rates. The total market rate was about 20% below the same 2022 week and about 5% below the five-year average. The year-over-year comparison was the least negative since March.
Dry van
Dry van spot rates declined 3.4 cents after rising nearly 7 cents during the prior week. Although the 2022 decrease in the same week was only slightly larger, dry van rates frequently see double-digit drops during the July 4 holiday week. Rates were more than 17% below the same 2022 week and about 9% below the five-year average. Dry van loads fell 31% for the largest decrease since Thanksgiving week. Volume was more than 41% below the same week last year and about 31% below the five-year average for the week.
Reefer
Refrigerated spot rates fell nearly 17 cents after rising more than 13 cents in the previous week. The decrease was the smallest for the July 4 holiday week since 2020, and rate drops during the holiday week frequently are larger than they were this year.
Rates were 13% below the same 2022 week and about 9% below the five-year average for the week. Refrigerated loads fell more than 33%. As was the case with dry van, the decrease was the largest since Thanksgiving week. Volume was 48% below the same week last year and nearly 34% below the five-year average for the week.
Flatbed
Flatbed spot rates surprised with a 2.5-cent increase following five straight weeks of decreases. Although flatbed rate drops are not as large during the July 4 holiday week as van rates are, in previous years they have always declined during the week.
Rates were about 24% below the same 2022 week and nearly 4% below the five-year average for the week. Flatbed loads fell nearly 32% to their lowest level since Thanksgiving week. Volume was nearly 58% below the same week last year and 50% below the five-year average for the week.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.
