Spot Market Freight and Rates Head Lower in February

Spot market freight volume fell another 7.9 percent in February, and truckload rates slipped, compared to January.

According to DAT Solutions, which issued the report, “The month-over-month decline was typical of seasonal norms, although disappointing harvests in California and Florida also contributed to this year’s lower volume. Freight volume typically rebounds in March, due to an influx of seasonal cargo such as spring fruit and vegetables, construction equipment and materials, and a variety of consumer items.”

By equipment type in February, van freight availability declined 21 percent, and refrigerated (“reefer”) volume lost 27 percent, while flatbed trailers added 26 percent, compared to January. Spot market rates declined 6.0 percent for vans, 3.5 percent for reefers, and 1.2 percent for flatbeds, month over month, not including fuel surcharges.

Compared to February 2015, overall spot market freight availability fell 37 percent. This continues a 14-month trend of year-over-year declines, due to a combination of tepid freight growth and abundant capacity. Demand declined 44 percent for both van and reefer trailers, and flatbed freight volume lost 24 percent, year over year.  Line haul rates fell 11 percent for vans, 7.2 percent for reefers, and 7.7 percent for flatbeds, year over year.

Total rates paid by intermediaries to the carrier declined by 18 percent for vans and 14 percent for both reefers and flatbeds, compared to February 2015, however, due to a 55 percent decline in the fuel surcharge, which comprises a portion of the rate. The surcharge is pegged to the retail cost of diesel fuel, which fell below $2.00 per gallon in February for the first time since 2004.

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