Data from Truckstop and FTR Transportation Intelligence for the week ending Jan. 3 showed continued holiday-related strengthening in broker-posted spot rates for dry van and refrigerated equipment as most of the week included the period between Christmas and New Year’s Day, according to a media release.
“Dry van spot rates increased to their highest level since January 2023, while refrigerated spot rates rose to their highest level since the end of 2023,” the release said. “On the other hand, flatbed spot rates were marginally below the lowest levels of 2024 and, therefore, technically declined to their lowest level since July 2020. The first couple of weeks of the new year typically see a steady softening of van equipment rates after the capacity-related spike during the holidays, but a major winter weather event impacting a large swatch of the U.S. could result in freight disruptions that boost rates in the current week.”
Total Spot load Availability
Total load activity rose 47.3% after plunging more than 57% during the week that included Christmas. Volume was more than 22% above that in the first week of 2024. Total truck postings increased 3.2% after falling 32% in the previous week. The Market Demand Index – the ratio of load postings to truck postings in the system – recovered to nearly the level posted two weeks earlier.
Total Spot Rates
The total broker-posted spot rate declined seven-tenths of a cent after rising 7 cents in the previous week. Rates were 1.6% higher than in the first week of 2024. Normally, both the first and second weeks of a new year see falling spot rates for dry van and refrigerated equipment, but the major weather event occurring this week could result in big freight disruptions that put upward pressure on rates. The same dynamic occurred during week 3 in 2024.
Dry Van Spot Rates
Dry van spot rates increased 2 cents to their highest level since early January 2023. Rates were more than 2% higher than during the first week of 2024. Dry van loads rose 36.8% following Christmas week. Volume was 23% below the first week of 2024.
Refrigerates Spot Rates
Refrigerated spot rates rose 10.6 cents to their highest level since the final week of 2023. Rates, which have risen 37 cents in the past three weeks, were 2.5% higher than in the first week of 2024. Refrigerated loads rose 28% after the week that included Christmas. Volume was 0.4% above the first week of 2024.
Flatbed Spot Rates
Flatbed spot rates fell nearly 3 cents for their largest decrease in seven weeks. Flatbed rates were marginally lower than levels recorded a few times in 2024 and, thus, were at their lowest level since July 2020. Rates were nearly 2% below the first week of 2024. Flatbed loads rebounded 78.7% after plunging more than 67% during Christmas week. Volume was more than 30% below the first week of 2024.
“With load availability recovery much faster than truck availability following Christmas week, the Market Demand Index recovered to 67.1, which is only slightly below the level two weeks earlier,” the release said.
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.
