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By Evan Lockridge


A decline in the amount of freight on the spot truckload market coupled with an increase in the number of trucks needing cargo,pushed rates down across the board, according to new weekly figures from DAT Solutions that are based on its network of load boards.

Overall freight availability fell 6.2% while truck postings increased 3.1% for the week ending August 13 compared to the previous week as the average diesel fuel price declined 0.4% to $2.31 per gallon.

The average dry van rate gave up 3 cents, hitting $1.61 per mile, which included a 1-cent drop in the average fuel surcharge. While outbound rates increased in Seattle and Allentown, they fell in Chicago and Atlanta. The average dry van rate is now lower than the June average for the first time in six weeks, a transition that typically occurs in the first week of July, according to DAT.

Likewise, the average reefer rate lost 3 cents, registering $1.90 per mile and is down 6 cents from three weeks earlier. Reefer prices rose in major markets in the Midwest, but were lower in the Northeast.

Flatbeds posted the smallest drop, just 1-cent and entirely due to a decline in the fuel surcharge, pushing the average rate to where it was two weeks earlier at $1.92 per mile.

Not surprisingly, with less freight and a hike in the number of truck postings, load-to-truck ratios fell in all three freight categories. The biggest was in the flatbed sector, falling 14% to 11 loads per truck. Flatbed load posts declined 11% last week while truck posts increased 4%.

The 7% drop in the van load-to-truck ratio happened as van load posts declined 4% last week and truck posts increased 3% yielding 2.5 loads per truck. Reefers were not far behind with a 5.5% drop. Reefer load posts edged down 3% last week while truck posts added 3%. That resulted in the load-to-truck ratio moving to 5 to 1.

 


Comments

09/21/2016 12:14am

It makes sense, the more the trucks, the lesser the rates. I am trying to understand the situation with marketing and economics, if there is so much of the same product with almost the same result or benefit, they can only win against the competitor by lowering the price. This is actually not healthy as they are not improving the product, they actually lessen the quality to make it more affordable. In the truck services, this can automatically affect the drivers! the companies who have trucks might need to decrease their employees, which means that those people who gets fired will be jobless and their families will be poor.

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03/02/2017 3:17pm

Wow, what an impactful attention for statistics. I don’t know if this is valuable to me or not. But I can use your statistics for our cargo business. Instead of hiring a statistician, I’ll look up at your article and see if the variables are the same with ours. Actually, I’m having a difficult time understanding economics on services. It’s way too strict in numbers. The basis should always be exact.

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11/28/2017 7:28am

Of course, if there are more trucks, that means there is a high competition among them. The tendency is that their rate would go lesser. It makes sense. It's like the concept of "the more, the merrier" We should be thankful as there is no scarcity when it comes to these trucks because that means their prices is unreasonable to go higher. I hope this will continue because it;'s a good thing for everyone!

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I've heard about new uprising tax for a heavy trucks from the New Year. Is it right?

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08/16/2017 8:16am

The decreasing amount in the freight is becoming a chance for people to push more load in their trucks. On the other hand it also has a lot of disadvantages too.

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09/13/2017 11:13pm

Lower truck rates would be beneficial for many people.

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12/08/2017 11:32pm

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