According to data from Truckstop and FTR Transportation Intelligence for the week ended Sept. 20 (Week 38), broker-posted spot rates for dry van equipment fell to their lowest level since June 2020, a “notable benchmark” according to a Sept. 24 press release.
Dry van spot rates in the latest week were a tiny fraction of a cent lower than they were during a single week in May 2023, which had been the previous low since June 2020.
Total spot rates and rates for flatbed equipment had already been at their lowest level since July 2020. Refrigerated spot rates are not as weak as the other equipment types relative to history, although they declined in the latest week to their lowest level since April.
With the growth in truck postings outpacing the uptick in load postings, the Market Demand Index declined to 58.4, which is the lowest level in three weeks.
Following is a breakdown of rate activity for the past week.
Total spot load availability
Total load activity edged 0.9% higher to the highest level in seven weeks after jumping nearly 20% during the week following Labor Day week.
Load postings were 3.6% below the same 2023 week and about 34.5% below the five-year average for the week.
Total truck postings rose 3.7%, and the Market Demand Index — the ratio of load postings to truck postings in the system — declined to its lowest level in three weeks.
Total spot rates
The total broker-posted rate decreased 2.6 cents to the lowest level since July 2020 after declining just over 2 cents in the prior week. Rates were 4% below the same below the same 2023 week and more than 10% below the five-year average.
The current week (Week 39) historically has seen mostly rising rates for dry van and flatbed but mostly declining rates for refrigerated.
The all-in broker-posted rate has been predominantly negative year over year since April 2022, but the lowest diesel prices in nearly three years shows a somewhat different picture for carriers’ overall finances when compared to last year summer when diesel prices were surging.
Excluding fuel costs (as estimated by a hypothetical fuel surcharge), broker-posted rates have been positive year over year for the past 10 weeks.
Dry van spot rates
Dry van spot rates declined more than 3 cents after falling just over 6 cents during the previous week. The decrease was expected as dry van rates have fallen in every week 38 since 2018.
Rates were more than 6% below the same 2023 week — the largest negative year-over-year comparison since March — and almost 17% below the five-year average for the week.
Excluding an imputed fuel surcharge, rates were 4.6% higher than the same 2023 week. Dry van loads barely changed, ticking up 0.4%.
Volume was about 26% below the same 2023 week and close to 49% below the five-year average.
Refrigerated spot rates
Refrigerated spot rates fell nearly 8 cents after declining 2 cents in the prior week. As with dry van, refrigerated spot rates have fallen in every week 38 since 2018.
Rates were 3.5% below the same week last year and close to 13% below the five-year average. Rates excluding an imputed fuel surcharge were up 5.6% year over year.
Refrigerated loads fell 8.9%. Volume was almost 9% below the same 2023 week and about 40% below the five-year average for the week.
Flatbed spot rates
Flatbed spot rates declined just over a half-cent for the 13th decrease in the past 14 weeks.
In recent years, flatbed rates have mostly risen in Week 38 and declines have been small. Rates were more than 4% below the same 2023 week and about 10% below the five-year average for the week.
Flatbed rates excluding an imputed fuel surcharge were up 4.7% year over year. Flatbed loads increased 3.1%.
Volume was 15.5% above the same week last year but more than 28% below the five-year average.
Linda Garner-Bunch has been in publishing for more than 30 years. You name it, Linda has written about it. She has served as an editor for a group of national do-it-yourself publications and has coordinated the real estate section of Arkansas’ only statewide newspaper, in addition to working on a variety of niche publications ranging from bridal magazines to high-school sports previews and everything in between. She is also an experienced photographer and copy editor who enjoys telling the stories of the “Knights of the Highway,” as she calls our nation’s truck drivers.
