The freight recession continues to push 2024’s rates and volumes below those from previous years, according to the recent weekly data from FTR Transportation Intelligence and first-quarter data from U.S. Bank.
FTR found rates and volumes across flatbed, dry van, and refrigerated equipment were all down year-over-year and significantly below FTR’s five-year average for the week. U.S. Bank found significant decreases in freight spending and volumes in Q1 2024.
FTR loads, rates continued down
FTR’s weekly freight commentary for the week ending April 26 noted changes in spot rates across flatbed, dry van, and refrigerated loads, while total load activity declined.
The flatbed spot market in FTR’s Truckstop system declined in both rates and volumes. Flatbed spot rates fell 3.5 cents—6% below the same week in 2023 and 4% below FTR’s five-year average. Flatbed volumes had decreased 3.6%; landing 6% below the same week last year and almost 38% below FTR’s five-year average for the week.
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Dry van also saw decreases in rates and volumes, though not as dramatically. Rates fell 3 cents, less than 1% below the same week last year and 7.5% below the five-year average for the week. Dry van volumes were down 3% for the week, 16% below last year’s and 28% below the five-year average.
Refrigerated spot rates and volumes, however, increased. Rates rose by about 5 cents, 1% above the same week last year but nearly 6% below the five-year average for that week. Refrigerated loads increased 2.6%, continuing strong from the previous week’s 6% increase—but the volume was still nearly 8% below the same 2023 week and about 32% below FTR’s five-year average.
Compared to the previous week, FTR's measured broker-posted rate across all three equipment types declined by about 3 cents and total load activity declined 2.7%.
FTR noted that general spot rates are “virtually certain to spike in mid-May due to the Commercial Vehicle Safety Alliance’s International Roadcheck inspection event,” which will lower overall driver capacity in the truck freight market.
Freight spending, volumes dropped nationwide in Q1
FTR’s weekly data showed continued drops in rates and volumes compared to 2023 and the five-year average. Meanwhile, at the quarterly scale, U.S. Bank also noted significant drops in truck freight spending and volumes.
The Q1 2024 U.S. Bank Freight Payment Index found that spending on U.S. truck freight dropped significantly compared to Q1 and Q4 2023. Shippers spent 27.9% less compared to the same quarter in 2023 and 16.8% less compared to Q4 2023.
National shipment volumes also dropped: down 21.6% compared to Q1 2023 and 7.8% compared to Q4.
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U.S. Bank’s index report noted the fall in spending was disproportionately lower than the fall in shipment volumes. The report attributed the fall in freight volumes in part to contracting household consumption of goods and retail sales.
The report noted spending dropped because of lower diesel fuel prices, international trade disruptions, and bad weather, in addition to the factors that drove down volumes.
