Spot rates are finally trending upward, sending a mixed bag of news last week.
According to FTR Transportation Intelligence, broker-posted spot rates in the Truckstop system for dry van and refrigerated van equipment both rose for the first time in four weeks in keeping with seasonal expectations during the week ended Aug. 2 (week 31), but rates weakened relative to the same 2023 week. Dry van spot rates remained positive year-over-year, but only by a tiny margin. Refrigerated spot rates were negative year-over-year for the first time since late June. Flatbed spot rates fell for the seventh straight week and deteriorated slightly in the last year.
The total load activity decreased 6.4% while total volume was 0.3% below the same week in 2023 — the first negative year-over-year comparison in four weeks — and about 28% below the five-year average for the week. Total truck postings decreased 6.4%, and the Market Demand Index — the ratio of load postings to truck postings in the system — was essentially unchanged from the previous week, according to FTR’s report last week.
The total broker-posted rate decreased 1.5 cents after easing by slightly less in the previous week. Total rates were 0.7% below the same 2023 week – the first negative comparison in four weeks – and 7.5% below the five-year average for the week. Total market rates fall more often than not during week 31, but the weakness typically is from flatbed rates, which usually fall during the week while rates for van equipment usually rise. The current week (week 32) has proven to be reliably weak over the years, especially for dry van and flatbed, although refrigerated has not performed much better.
FTR reported that dry van spot rates increased 1.6 cents, reversing the prior week’s decline. Rates generally increase week over week during week 31, falling only three times since 2008. Dry van rates were up just 0.2% year-over-year but kept alive a five-week streak of positive yearly comparisons. Rates were down 11.5% versus the five-year average. Dry van loads decreased 2.2%. Volume was more than 11% below the same 2023 week and more than 31% below the five-year average for the week.
Refrigerated spot rates increased 4 cents after decreasing nearly 3 cents during the previous week. Rates have not declined week over week during week 31 since 2013. Refrigerated rates were a little more than 1% below the same 2023 week and more than 9% below the five-year average. Refrigerated loads rose 5.1%. Volume was nearly 15% below the same 2023 week and nearly 30% below the five-year average for the week.
Flatbed spot rates declined 2.4 cents after decreasing nearly 2 cents in the prior week. Rates, which have risen only once (in 2020) during week 31 over the past seven years, were nearly 1% below the same 2023 week and almost 7% below the five-year average. Flatbed loads fell 12.7%. Volume was 17% above the same week last year but almost 30% below the five-year average for the week
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
