Connect with us

Business

DAT Solutions says despite solid volumes, spot truckload rate slide

Published

on

This chart shows rates for the past four months for dry van, reefer and flatbed segments. (Courtesy: DAT SOLUTIONS)

PORTLAND, Ore. — Echoing previous weeks, load postings increased in a handful of key markets and are generally solid but fell 5% nationwide during the week ending October 27, according to DAT Solutions, which operates the industry’s largest electronic marketplace for spot truckload freight. Plentiful capacity pushed load-to-truck ratios lower and held rates in check.

National Average Spot Rates for October (through October 27) included:

  • Van: $1.80 per mile, 4 cents lower than the September average
  • Flatbed: $2.18 per mile, 2 cents lower compared to September
  • Reefer: $2.11 per mile, 5 cents lower than September

Van Trends

Spot van rates were higher on just 32 of DAT’s Top 100 largest van lanes by volume. While most markets were softer in terms of shipper demand for trucks, the number of van loads out of Los Angeles increased 8% and the outbound rate gained 2 cents to an average of $2.18 per mile. The load-to-truck ratio there touched 5.2 last Friday, a positive turn for carriers and perhaps a sign of better days ahead for fourth quarter imports.

Where rates were up: After Los Angeles, it’s a short list of markets where rates increased last week. Seattle, up 1 cent to $1.61 per mile, improved on last week’s modest gain, and Denver rose a penny to $1.19 per mile. While truckers would welcome higher rates, Seattle and Denver are perennial low-priced markets with sub-national-average outbound rates. On the downside, Columbus, Ohio, fell 1 cent to $2.08 per mile and is down 5% over the past four weeks. Lanes to watch:

  • Los Angeles to Dallas, up 5 cents to $1.82 per mile
  • Seattle to Spokane, Washington, up 17 cents to $3.09 per mile
  • Philadelphia to Boston, down 14 cents to $3.26 per mile

Flatbed Trends

Spot flatbed rates have been slipping all month and the national average load-to-truck ratio has declined from nearly 15:1 during the first week of October to 9:1 last week.

Where rates were up: Phoenix, Tampa, Florida, and Harrisburg, Pennsylvania, may be on different sections of the map but they all had one thing in common: higher spot flatbed volumes. Loads from Harrisburg increased 6% compared to the previous week while Tampa and Phoenix gained roughly 4%. Lanes to watch:

  • Houston to Wichita, Kansas, up 38 cents to $2.51 per mile
  • Memphis, Tennessee, to Tulsa, Oklahoma, up 36 cents to $3.11 per mile

– Reno, Nevada, to Watsonville, California, up 39 cents to $3.53 per mile

This weekly spot-rate snapshot is derived from DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $65 billion in annualized freight payments. DAT load boards average 1.2 million load searches per business day.

For information go to www.dat.com/Trendlines.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Werner Logistics recognized as Enterprise Business of Year at tech celebration

Published

on

Members of the Werner Logistics team include (front row) Rajan Bhattarai, Stacey Richter, Marina Brown, Vajra Anugu, Lavanya Gudimetla, Kim Smith, Padmaja Ravipati and Manoj Eedara; (back row) Andy Damkroger, Ronnie Thomas, Johnny Boykin and O’Brien Chin.  (Courtesy: WERNER ENTERPRISES)

OMAHA, Neb. — Werner Enterprises, a transportation and logistics provider, has been recognized as the Enterprise Business of the Year at the 2019 AIM Tech Celebration.

Werner associate Marina Brown was also named the Tech Champion of the Year.

“Werner Logistics continues to show our ability to differentiate the Werner portfolio with creative and innovative solutions,” said President and Chief Executive Officer Derek Leathers. “It is especially important to acknowledge our talent and culture because without them none of these groundbreaking achievements are possible.”

Leathers said Werner Logistics was named Enterprise Business of the Year for its outstanding application of technology. Other criteria included innovative product/project deployment, groundbreaking ideas or implementations or an outstanding return on technology investment.

The Tech Champion of the Year Award is a special recognition conferred by the Tech Celebration award committee to an individual or group who has contributed their time and talents to AIM and other tech community initiatives to develop tech awareness and skills in others. Brown is an Application Development Manager at Werner.

The AIM Institute, headquartered in Omaha, is an innovative not-for-profit that grows, connects and inspires the tech talent community through career development and educational programs. Through these efforts, the AIM Institute improves thousands of lives across the Silicon Prairie.

Werner Enterprises was founded in 1956.

For more information, visit www.werner.com.

 

 

 

Continue Reading

Business

FTR’s September Shippers Conditions Index Stays in Positive Territory

Published

on

September Shippers Condition Index is unchanged over August but forecast indicate upward trend.

Bloomington, Ind.– FTR’s Shippers Conditions Index (SCI) for September remained unchanged from August at a 6.4 reading. All measures included in the SCI were positive with less favorable fuel pricing offsetting more favorable freight volume, capacity utilization, and logistics cost factors.

FTR projects the Shippers Conditions Index to trend towards neutral through 2020 as freight demand softens and capacity utilization firms. The potential impact of a global reduction in the sulfur content of marine fuel due to IMO 2020 remains a wildcard.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Shippers’ place in the freight market remains solidly positive as the year moves into its final quarter. We expect shippers’ position in the marketplace to slowly deteriorate in 2020 as capacity tightens and freight demand recovers.”

The November issue of FTR’s Shippers Update, published November 7, 2019, details the factors affecting the September Shippers Conditions Index. Also included in November is an analysis of trucking failures, the total number of carriers operating and the effect on overall capacity.

The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem…and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.

Continue Reading

Business

ATA For-Hire Truck Tonnage Index declines 0.3% in October

Published

on

ATA’s tonnage data is dominated by contract freight, which is performing significantly better than the plunge in spot market freight this year. (The Trucker file photo)

ARLINGTON, Va. —  The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index declined 0.3% in October after rising 1% in September. In October, the index equaled 118.1 (2015=100) compared with 118.5 in September.

“October’s tonnage change, both sequentially and year-over-year, fits with an economic outlook for more moderate growth in the fourth quarter,” said ATA Chief Economist Bob Costello. “The ongoing slowdown in manufacturing activity also weighed on truck tonnage last month.”

It is important to note that ATA’s tonnage data is dominated by contract freight, which is performing significantly better than the plunge in spot market freight this year.

September’s reading was revised up compared with our October press release.

Compared with October 2018, the SA index increased 1.7%, the smallest year-over-year gain since June. The index is up 3.9% year-to-date compared with the same period last year.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 125.4 in October, 8.4% above the September level (115.7). In calculating the index, 100 represents 2015.

Trucking serves as a barometer of the U.S. economy, representing 70.2% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks hauled 10.77 billion tons of freight in 2017. Motor carriers collected $700.1 billion, or 79.3% of total revenue earned by all transport modes.

ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 5th day of each month. The report includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.

Continue Reading

Trending