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BLOOMINGTON, Ind. — Broker-posted dry van and refrigerated spot rates in the Truckstop system saw modest gains during the week ended June 23 (week 25), but flatbed spot rates fell sharply for the second straight week. The drop in flatbed spot rates was the largest since March. Dry van saw a larger increase than did refrigerated, but in both cases the gains were the largest since the surge in mid-May due to the International Roadcheck event. The van segments saw healthy volume increases while flatbed loads fell. Loads available Total load activity fell 1.8% due solely to flatbed. Volume was about 43% below the same week last year and nearly 31% below the five-year average. Load activity was up on the West Coast and in the Mountain Central region, but regional volumes varied greatly by equipment type. Truck postings barely changed, ticking up just 0.1%, and the Market Demand Index – the ratio of loads to trucks – eased to its lowest level since the week before Roadcheck. Total rates The total broker-posted rate fell just over 5 cents after falling exactly 5 cents during the previous week. The total market rate was 23% below the same 2022 week and 5.5% below the five-year average. Total rates typically rise during week 25 heading into the mid-year peak, but sharply weaker flatbed rates thwarted that expected move. The current week – week 26 – typically represents the peak of van spot rates each year except for the December holiday period. Dry van Dry van spot rates rose nearly 5 cents after declining 3.5 cents during the prior week. Rates were nearly 19% below the same 2022 week and more than 10% below the five-year average. Dry van rates traditionally rise significantly during the current week. Dry van loads increased 11.2%, which is the strongest gain since Roadcheck week. Volume was more than 34% below the same week last year and nearly 25% below the five-year average for the week. Loads were up in all regions except for the South Central region. Reefer Refrigerated spot rates increased about 2 cents after falling nearly 5 cents in the previous week. Rates were almost 17% below the same 2022 week and more than 9% below the five-year average for the week. As with dry van, refrigerated rates almost always rise significantly during the current week of the year. Refrigerated loads jumped 18.4% – the strongest increase since Roadcheck week. Volume was nearly 45% below the same week last year and about 28% below the five-year average for the week. Loads were down on the West Coast but up in all other regions. Flatbed Flatbed spot rates fell more than 7 cents after dropping more than 5 cents in the prior week. The decrease was the segment’s largest since March. Rates were about 26% below the same 2022 week and more than 4% below the five-year average for the week. Flatbed loads fell 13.8%, which is the largest weekly decrease this year. Volume was nearly 50% below the same week last year and about 39% below the five-year average for the week. Loads were up on the West Coast but down in all other regions.

BLOOMINGTON, Ind. — Total spot market rates in the Truckstop system fell by the most in more than three months during the week ended June 16 (week 24), due largely to the largest drop in flatbed rates since then, according to the latest report from Truckstop and Freight Transportation Research. Broker-posted dry van and refrigerated rates also declined in the latest week, but those decreases were not especially notable compared to those seen in recent weeks. Truckstop analysts note that “the next couple of weeks are key for the van segments as week 26 typically represents one of the strongest weeks of the year for spot rates.” Loads available Total load activity declined 4.6% after rising about 10% in the previous week. Volume was almost 44% below the same week last year and nearly 29% below the five-year average. Load activity rose in the Southeast and was up slightly in the Northeast but fell in all other regions. Truck postings ticked up 0.3%, and the Market Demand Index – the ratio of loads to trucks – declined to its lowest level since mid-May. Total rates The total broker-posted rate fell 5 cents after easing more than a cent in the prior week. The decrease was the largest since a slightly larger one in week 10. The total market rate was 22% below the same 2022 week and 2.5% below the five-year average. Dry van Dry van spot rates declined 3.5 cents after falling 4 cents in the previous week. Rates were about 20% below the same 2022 week and more than 10% below the five-year average. Dry van loads declined 3.7% after rising more than 7% during the prior week. Volume was about 42% below the same week last year and nearly 29% below the five-year average for the week. Reefer Refrigerated spot rates fell nearly 5 cents after ticking up just a tenth of a cent in the prior week. Rates were almost 15% below the same 2022 week and 7% below the five-year average for the week. Refrigerated loads fell 9.2% after rising nearly 8% during the previous week. Volume was more than 47% below the same week last year and nearly 32% below the five-year average for the week. Flatbed  Flatbed spot rates fell more than 5 cents after decreasing 1.6 cents in the previous week. The decrease was the segment’s largest since March. Rates were nearly 25% below the same 2022 week and 1% below the five-year average for the week. Rates had not been below the five-year average since 2020. Flatbed loads declined 4.2% after rising more than 12% in the prior week. Volume was nearly 46% below the same week last year and more than 32% below the five-year average for the week.

Each of the experts in most industries has their method of interpreting the economic “tea leaves.” However, by the end of May a common theme was emerging: Nearly everyone was questioning whether the trucking market had hit bottom. As early as May 16, analysts at ACT Research noted that capacity was beginning to tighten. That’s another way of saying the excessive number of trucks available for the reduced number of available loads was starting to shrink. There are two ways to reduce the excessive number of trucks: 1) Get trucks out of the market or 2) increase shipment numbers. One way to tell trucks are leaving the market is by the number of orders for Class 8 trucks. For the past few months, new orders have trailed production by thousands each month. In May, for example, 14,000 to 15,000 trucks were ordered, while more than 24,000 were actually sold, bringing down the backlog of trucks on order but yet to be built. At the same time, used truck inventories increased, indicating some trucks are coming off the road. Another way to monitor the number of trucks is by the number of interstate operating authorities granted by the DOT. That number fell rapidly in the first few months of the year and is still beneath record levels set last year. At the same time, authority revocations exceeded the number granted. This means there are fewer carriers — mostly businesses with one to five trucks — shutting down, which may also help explain the increase in available used trucks. Yet another method is to note the number of truck drivers employed by the industry. According to reports from the U.S. Department of Labor, long-haul trucking jobs declined by 8,700 in the first quarter of 2023. That’s about 1% of the driving force. The other part of the equation — increasing freight shipments — hasn’t happened yet. When it does, spot freight rates will begin rising. For now, however, an entire industry hopes they don’t go any lower. The Cass Freight Index for Shipments grew 1.9% in May from April levels. Unfortunately, shipment levels almost always rise in May. When seasonally adjusted, the shipments index actually fell by 0.8%. The year-over-year change, May 2023 compared to May 2022, showed a 5.6% decline. According to the Cass Freight Index for Expenditures, payments for those shipments fell 7.1% in May. If shipments fell slightly less than 1% while expenditures fell more than 7%, the culprit must be lower rates. The Cass release blamed declining retail sales and “destocking” for the drop. Destocking is the deliberate reduction of inventory to meet current customer demand. As for expenditures, it’s important to note the Cass Freight Index for Expenditures rose by a record 38% in 2021 and followed that up with another 22% increase in 2022. The expected decline in 2023 is around 16%, so freight rates are still considerably higher than in 2020. Unfortunately, so are expenses due to inflation and EPA-mandated emissions requirements for new trucks. The Cass Freight Index numbers are compiled from billing for Cass customers and represent transport by multiple modes, including truck, rail, pipeline, barge, ship and air. For strictly truck numbers, DAT Freight and Analytics tracks weekly and monthly data from its load board, which is the largest in the industry. DAT’s “Trendlines” report showed a 29.4% increase in spot loads posted for May compared to April. However, much of that gain is due to the start of produce shipments, which begin around the same time each year. Compared with May 2022, this year’s May spot load postings declined by 61.2%. Spot rates for van freight fell 0.3% in May from April numbers, while flatbed spot rates fell 0.9%. Temperature-controlled rates actually rose 2.1%. Those numbers, however, look dismal when compared to May 2022. Van rates fell 23.7%, flatbed 22.5% and refrigerated 20.3% year over year. As of this writing, spot rates for both van and refrigerated freight have risen by two cents in June, while flatbed rates are holding steady at May levels. Early June results were undoubtedly buoyed by the Memorial Day weekend, when rates get a push due to the number of trucks shut down for the holiday. The weekly FTR Transportation Update for June 12 indicated wholesale inventories are still highly elevated, which means more “destocking” is to be expected. Businesses that are reducing inventory aren’t ordering new product — and fewer orders means fewer truckloads. On May 23, ACT Research released its revised Trucking Industry Forecast for 2023. In it, the firm states the industry is nearing the bottoming stage of its “classic truckload cycle.” During this part of the cycle, the decline in freight rates tends to slow or stop altogether as tractor ordering and sales slow. The cycle begins again when freight levels increase, and rates begin rising. How soon that happens is a matter of conjecture. ACT’s report states “the economy has proven more resilient than initially envisioned.” Analysts still recommend caution, however, and are holding to their expectation for a shallow recession around mid-2023. As for freight rates, the firm projects the bottom was reached near the end of May. By the time this story comes out in print, the numbers will have begun rising … or not. Those trucking businesses that have hung on through the downturn should be equipped to see better times beginning by the end of the year, if they can hang on that long. Good business decisions and cost avoidance are keys to surviving and being in position to profit when the market turns.

BLOOMINGTON, Ind. — Total spot market rates in the Truckstop system declined slightly during the week ended June 9 (week 23), according to the company’s latest data. Broker-posted dry van and flatbed rates saw modest decreases while refrigerated spot rates were basically flat versus the prior week. “The van segments typically see fairly stable spot rates during the first two weeks of June in advance of what usually is a strong couple of weeks late in the month,” according to a news release. “Spot volume and capacity rebounded from sharp decreases during the Memorial Day holiday week.” Loads available Total load activity rose 10.1% after falling 14.1% during the holiday week. Volume was almost 42% below the same week last year and nearly 26% below the five-year average. Load activity rose in all regions. Truck postings jumped 16.5%, and the Market Demand Index – the ratio of loads to trucks – fell to its lowest level since before the International Roadcheck week in May. Total rates The total broker-posted rate declined just over 1 cent after holding essentially flat in the prior week. The total market rate was more than 22% below the same 2022 week and more than 1% below the five-year average. The deficit versus the five-year average is about a point larger than it was in the previous week, which had been the first to see a negative comparison versus the average since June 2020. Dry van Dry van spot rates fell 4 cents after easing two-tenths of a cent in the previous week. Rates were nearly 19% below the same 2022 week and 9% below the five-year average. Dry van loads rose 7.1% after falling more than 15% during the holiday week. Volume was 37% below the same week last year and 23% below the five-year average for the week. Loads declined in the Midwest but were up in all other regions. Reefer Refrigerated spot rates were essentially unchanged, ticking up just a tenth of a cent after falling about 5 cents in the prior week. Rates were almost 13% below the same 2022 week and nearly 5% below the five-year average for the week. Refrigerated loads increased 7.9% after falling nearly 14% during the holiday week. Volume was nearly 43% below the same week last year and about 23% below the five-year average for the week. Loads were up in all regions. Flatbed Flatbed spot rates decreased 1.6 cents after easing three-tenths of a cent in the prior week. Rates were 25% below the same 2022 week but 0.4% above the five-year average for the week. Flatbed loads rose 12.2% after falling 13.5% during the holiday week. Volume was nearly 47% below the same week last year and more than 31% below the five-year average for the week. Loads declined on the West Coast and in the Northeast but were up in all other regions – sharply in most cases.

NEW YORK — Unionized UPS workers voted overwhelmingly on Friday to authorize a strike, setting the stage for a potential work stoppage if the package delivery company and Teamsters can’t come to an agreement before their contract expires next month. The Teamsters said 97% of unionized workers voted for the authorization, which the union urged for in order to have more leverage during negotiations with the company. But a yes vote does not mean a strike is imminent. “If this multibillion-dollar corporation fails to deliver on the contract that our hardworking members deserve, UPS will be striking itself,” Teamsters General President Sean O’Brien said in a prepared statement. “The strongest leverage our members have is their labor and they are prepared to withhold it to ensure UPS acts accordingly.” The Teamsters represent about 340,000 UPS employees, more than half of the company’s workforce in the largest private-sector contract in North America. If a strike occurs, it would be the first since a 15-day walkout by 185,000 workers crippled the company a quarter century ago. UPS has grown vastly since then and become even more engrained in the U.S. economy. The company says it delivers the equivalent of about 6% of nation’s gross domestic product. That means a strike would carry with it potentially far-reaching implications for the economy. UPS said in a prepared statement the strike vote does not impact the company’s current business operations. “Authorization votes and approvals are normal steps in labor union negotiations,” the company said. “We continue to make progress on key issues and remain confident that we will reach an agreement that provides wins for our employees, the Teamsters, our company and our customers.” UPS workers are still seething about the current contract, which they feel was forced on them by prior union leadership in 2018 based on a technicality. The contract created two hierarchies of workers with different pay scales, hours and benefits. The union wants it eliminated. In addition to addressing part-time pay and what workers say is excessive overtime, the union wants improvements to driver safety, particularly the lack of air conditioning in delivery trucks, which has been blamed for the death of a driver and hospitalizations of others. On Tuesday, the union and the company announced they reached a tentative agreement to equip more trucks with air conditioning equipment. Under the agreement, UPS said it would add air conditioning to U.S. small delivery vehicles purchased after January 1, 2024. But those changes aren’t extending to vehicles already in operation – at least not yet. Instead, the union says two fans would be installed in all vehicles when a new contract is ratified. It also said the company agreed to add heat shield to some vehicles, and put air vents in all cars within 18 months of a new contract. Under the agreement, UPS says roughly 95% of its existing U.S. package delivery fleet will be enhanced. Teamsters spokesperson Kara Deniz said there have been two dozen tentative agreements reached with UPS since the negotiations began in April. The current contract expires on July 31. UPS delivers around 25 million packages a day, representing about a quarter of all U.S. parcel volume, according to the global shipping and logistics firm Pitney Bowes. That’s about 10 million parcels more than it delivered each day in the years leading up to the pandemic. UPS profits have soared since the pandemic began in 2020 as millions of Americans grew to rely on the delivery to their doorstops. Annual profits at UPS in the past two years are close to three times what they were pre-pandemic. The Atlanta company returned about $8.6 billion to shareholders in the form of dividends and stock buybacks in 2022, and forecasts another $8.4 billion for shareholders this year. The Teamsters say that profit growth is largely due to the hard work of UPS drivers and warehouse workers who carry everything from 50-pound bags of dog food and cases of wine to prescriptions. The acrimony over the current contract was the impetus for workers rejecting a candidate to lead the Teamsters favored by longtime union head James Hoffa. Union members instead chose O’Brien, who has dug in on the Teamsters’ contract demands of UPS. A win at UPS could also have implications for the organized labor outside the company. There have been prominent labor organization campaigns at Apple, Starbucks, Trader Joe’s, even strippers at a dance club in Los Angeles. Teamsters are also attempting to organize workers at Amazon. On Friday, the new president of the United Auto Workers gave his strongest warning yet that the union is preparing for strikes against Detroit’s three automakers when contracts expire in September.