Seasonal Freight Up, Linehaul Rates Dip

Spot market freight volume got a 38 percent boost from seasonal freight in March, according to the DAT North American Freight Index.

Compared to February, van freight availability in March increased 25 percent, flatbed volume rose 64 percent, and reefer volume added 16 percent. Month over month, linehaul rates on the spot market declined 1.4 percent for vans, and 1.8 percent for reefers, but flatbed rates increased 0.6 percent.

Compared to March 2015, overall spot market freight availability fell 35 percent. Year-over-year declines have been a consistent pattern in every month since January 2015, due to a variety of economic factors including lower demand for transportation services in the spot market combined with loose truck capacity. Demand declined 48 percent for vans, and 45 percent for reefer trailers, while flatbed freight volume was down “only” 16 percent, year over year. Line haul rates fell 16 percent for vans, 11 percent for reefers, and 9.6 percent for flatbeds.

A 51 percent decline in the fuel surcharge, which typically comprises a significant portion of the total rate intermediaries pay carriers contributed to a decline in all-in rates for all equipment types. All-in rates for vans were down 21 percent, reefers declined by 17 percent, and flatbeds were off 16 percent.  The surcharge is pegged to the retail cost of diesel fuel.

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