DAT: Fewer trucks meant higher rates in September
October 09 2019 - 11:30AM
Truckload freight markets turned a corner in September. Demand for
shipments remained high throughout the month, while the combination
of tighter capacity and higher fuel costs pushed spot market rates
higher.
Volumes for dry van, refrigerated (“reefer”) and flatbed freight
declined from their August peaks, but volumes for September 2019
beat September 2018 numbers, according to the DAT Truckload Freight
Volume Index. The index reflects changes in the actual number of
spot market loads moved each month.
“Truckload volume has been strong all year long, but pricing
hasn’t always kept pace,” explained Peggy Dorf, Market Analyst with
DAT Solutions. “That’s because truckload rates are tied more
closely to capacity than volume, and last month a number of events
limited truck availability in key markets for shippers and freight
brokers.”
Hurricane Dorian disrupted supply chains early in the month,
with the spot market kicking into action for resupply and recovery
efforts along the Southeast coast. Flooding along the Gulf Coast
after Tropical Storm Imelda also stalled freight movements later in
the month.
Meantime, fall harvests and retail shipments spurred by
Halloween kept trucks in high demand. Plus the close of Q3 led to a
spike in activity to end the month.
Van rates averaged $1.84 per mile in September, up 4 cents from
the prior month average. The average rate was 30 cents below the
high prices of September 2018. Van volume fell 6.9 percent from
August, but compared to last year, September van volume rose 15
percent.
Fall produce harvests pushed reefer load counts 10 percent
higher than they were in September 2018, despite the 7.6 decline
from last month’s peak demand. Nationally, reefer rates averaged
$2.16 per mile in September, a 2-cent increase over August but a
35-cent drop from September 2018.
Flatbed markets have lagged in 2019, but prices began to
stabilize last month. The national average stayed at $2.19 per
mile, the same as August but 32 cents below the high rates from
September 2018. Flatbed volume declined 8.2 percent after peaking
in last month, but load counts remained 14 percent above where they
were last year.
“The spot market gained a lot of momentum heading into Q4,” said
Dorf. “We expect demand to remain elevated through the rest of the
year, and the holiday shipping season should push van rate higher
than we saw in Q3.”
About the DAT Truckload Freight Volume
Index
The DAT Truckload Freight Volume Index reflects the change in
the number of loads with a pickup date during that month; the
actual index number is normalized each month to accommodate any new
data sources without distortion. Baseline of 100 equals the number
of loads moved in January 2015, as recorded in DAT RateView, a
database of rates paid on an average of 3 million loads per month.
DAT national average spot rates are derived from RateView and
include only over-the-road lanes with lengths of haul of 250 miles
or more. Spot rates represent the payments made by freight brokers
and 3PL to the carriers.
About DAT
DAT market trends and data insights are derived from 256 million
annual freight matches and a database of $65 billion in annual
market transactions. Related services include a comprehensive
directory of companies with business history, credit, safety,
insurance, and company reviews; broker transportation management
software; authority, fuel tax, mileage, vehicle licensing, and
registration services; and carrier onboarding.
Founded in 1978, DAT Solutions LLC is a wholly owned subsidiary
of Roper Technologies (NYSE:ROP), a diversified technology company
and constituent of the S&P 500, Fortune 1000, and Russell 1000
indices. www.DAT.com
Media ContactEileen Hart, Vice President, Marketing &
Corporate CommunicationsDAT
Solutionseileen.hart@dat.com503-672-5132
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f13f51d9-a723-4ff7-8ae5-6402228a42a7
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