BLOOMINGTON, Ind. — Relief and recovery efforts and, perhaps, highway infrastructure damage in the wake of Hurricane Helene apparently fueled the largest increase in spot rates this year, according to Truckstop and FTR Transportation Intelligence.
“Total broker-posted spot rates in the Truckstop system rose to their highest level since early August during the week ended October 4 (week 40) as rates rose strongly for each of the principal equipment types – dry van, refrigerated, and flatbed,” FTR said in a media release. All three saw their sharpest increase in a comparable week since at least 2008.”
According to Truckstop and FTR, data for the week ended October 4 indicated that Hurricane Helene had a big effect on the spot market in the week following its initial landfall due to relief and recovery efforts and, possibly, due to highway infrastructure damage, such as the closure of a section of I-40 in western North Carolina.
Total broker-posted spot rates in the Truckstop system saw their largest increase of the year as they rose to their highest level since early August. All three principal equipment types saw large increases with the gain in flatbed being the largest in a single week since May 2022. The increase in dry van was the largest since International Roadcheck week in May of this year, and the refrigerated increase was the largest – and the first – since late August.
“The current week (ending October 11) almost always sees lower dry van and refrigerated rates week over week, but effects from Hurricane Milton and continued impacts from Helene could produce a different outcome,” the release said.
Regional load and rates data support the logical assumption that Helene was the principal driver of spot market changes in the latest week. Nationwide, with load postings rising and truck postings declining, the Market Demand Index rose to 70.6, which is the highest level since mid-July.
Total Spot Load Availability
Total load activity rose 7.6% after increasing about 5% during the previous week. Load postings were about 8% above the same 2023 week – the first positive comparison since late July – but about 24% below the five-year average for the week. The week-over-week increase in volume was strongest in the Southeast region, supporting the conclusion that Hurricane Helene’s aftermath was the key stress on the market. Total truck postings fell 5.2%, and the Market Demand Index – the ratio of load postings to truck postings in the system – rose to its highest level since mid-July.
Total Spot Rates
The total broker-posted rate increased more than 8 cents after ticking up just over a half cent in the prior week. Rates were 0.4% above the same 2023 week for the first positive y/y comparison since late July but were still about 7% below the five-year average. The increase in total rates was strongest in the Southeast, although all regions saw some increase except for the Northeast where rates were basically flat. Spot rates excluding a calculated fuel surcharge were about 11% higher than the same 2023 week and were positive y/y for all equipment types. The current week (week 41) almost always sees lower dry van and refrigerated rates week over week, but effects from Hurricane Milton – expected to hit Florida’s Gulf Coast on Wednesday – and continued impacts from Helene could produce a different outcome.
Dry Van Spot Rates
Dry van spot rates increased more than 7 cents after increasing 2 cents during the previous week. Rates, which saw their biggest increase since International Roadcheck week in May, were about 3% below the same 2023 week and close to 14% below the five-year average for the week. Excluding an imputed fuel surcharge, rates were nearly 9% higher than during the same 2023 week. Dry van loads rose 8.4%. Volume was nearly 9% below the same 2023 week – the least negative comparison in 10 weeks – and more than 36% below the five-year average.
Refrigerated Spot Rates
Refrigerated spot rates rose about 8 cents after falling close to 5 cents in the prior week. Rates, which were up for the first time in five weeks, were 0.4% below the same week last year and nearly 10% below the five-year average. Rates excluding an imputed fuel surcharge were up more than 9% y/y. Refrigerated loads increased 7.7%. Volume was nearly 3% above the same 2023 week – the first positive y/y comparison in 12 weeks – but about 33% below the five-year average for the week.
Flatbed Spot Rates
Flatbed spot rates jumped more than 9 cents for its largest increase in a single week since May 2022. Rates were 0.4% above the same 2023 week – the first positive y/y comparison in 11 weeks – but about 6% below the five-year average for the week. Rates excluding an imputed fuel surcharge were up nearly 11% y/y. Flatbed loads rose 7.9%. Volume was more than 22% above the same week last year but close to 19% below the five-year average.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
