October was the strongest month for freight availability in 2016 except for the June seasonal peak, according to the DAT North American Freight Index, compiled by DAT Solutions, which operates the industry’s largest electronic load board network.
Compared with September, total spot market freight volume rose 1.8%.
An 11% increase in flatbed freight volume was responsible for the month-over-month growth, as van volume dipped 0.6% and reefers lost 4.0% in October versus September. Flatbed freight is associated with energy exploration, as well as construction, which may have gotten a boost in October due to post-hurricane relief and rebuilding in the Southeast.
The atypical trend included a surge in volume and rates on eastbound, long-haul van lanes out of the West Coast, although declining volume in other regions prevented van volume from exceeding September levels. West-to-east increases were likely due in part to rescheduling of retail freight movements in the wake of the Hanjin Shipping bankruptcy, as well as abundant autumn harvests in California and the Pacific Northwest.
Despite the lower overall volume, and due partly to that West Coast demand, van rates climbed 1.4% in October. Refrigerated (reefer) freight rates experienced a seasonal decline of 1.2%, but flatbed rates gained 0.6% month-over-month.
Year-over-year, October 2016 truckload freight availability was up 27% compared with October 2015, as the number of loads on the spot market surpassed same-month levels from the previous year. October marked the third consecutive month of year-over-year gains.
Dry van freight availability surged 51% in October, and reefer volume advanced 44% over October 2015. Flatbed freight volume edged up 0.5%, marking the first year-over-year increase for flatbeds in 16 months.
Linehaul rates dropped for all three equipment types, however, compared with October 2015. Van rates were down 2.7%, reefers lost 1.2%, and flatbed rates fell 4.6% year over year.
The average fuel surcharge, a component of the total rate paid to carriers, decreased 4.3% year over year, but the surcharge rose 10% from September to October. The surcharge is pegged to the retail price of diesel fuel.
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