Truckload Volume Index increases 2.1% in July, DAT: The volumes and Rates increase as shippers use the spot market to resolve imbalances in their freight networks.
The seasonal trends, the surge continues in spot market rates across all equipment types, according to DAT Freight & Analytics. DAT Freight & Analytics announced the market rates which operates the industry’s largest online marketplace for spot truckload freight.
The DAT Truckload Volume Index, a measure of refrigerated and flatbed loads, dry van, moved by truckload carriers, rose 2.1% from June and was 3.7% higher compared to July 2019.
“States are reopening at different rates and are being hit by the virus at different times. This is leading to unseasonal peaks and valleys in manufacturing output and consumer demand,” said Ken Adamo, chief of analytics at DAT. “Carrier networks are out of balance due to inconsistent freight demand at a commodity and lane level, and this is leading to a spike in demand for spot freight in order to meet the capacity need.”
The July load-to-truck ratio for vans increased by up to 25% from last month from the previous month. The ratio was nearly double than the July 2019 number (2.1), indicative of a market with more freight than trucks posted on the DAT network. Spot van rates averaged $2.03 per mile nationally, up 23 cents compared to June and also 19 cents higher versus July 2019.
There is a rapid change in the Spot reefer volumes. They were up less than 1% month-over-month. The reefer load-to-truck ratio was 7.4, which is four times higher than April’s all-time low of 1.7 loads per truck. The national reefer spot average rate was $2.30 per mile, up 15 cents compared to June, and also 11 cents higher year-over-year.
Construction also remains strong. July flatbed volume is constant compared to June and down 6.6% compared to July 2019 numbers.
DAT Freight Outlook: Higher reefer and van rates in the forecast
There is a chance in the increase in National van and reefer spot rates. Flatbed rates may not constant in August.
“The entire supply chain is being forced to adapt to changes in consumer buying patterns, which affects everything from the equipment types needed for delivery to warehousing capacity,” Adamo said. “Increased online shopping is here to stay and shippers and carriers alike are being forced to adjust.”
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