Demand for Spot Truckload Capacity Slows

The gradual decline in rates is in contrast to the sudden increases following the Dec. 18, 2017, ELD deadline. Van and reefer load-to-truck ratios edged down for a second straight week after hitting multi-year peaks in early January:

– Van load-to-truck ratio: 9.8, down from 10.7 the previous week

– Reefer ratio: 15.5, down from 18.4

– Flatbed ratio: 53.9, up from 53.7

VAN MARKET: Van load posts fell 5% and truck posts increased 4% as the national average spot van rate fell 1 cents to $2.27/mile. Rates were down on most of the top 100 van lanes but stayed elevated in key markets:

– Dallas, $2.05/mile, up 2 cents

– Philadelphia, $2.43/mile, up 11 cents

– Chicago, $3.05/mile, up 5 cents

– Memphis, $2.61/mile, up 6 cents

Los Angeles dropped 14 cents to $2.53/mile after losing 16 cents the previous week.

REEFER MARKET: The national average reefer rate was unchanged at $2.70/mile as load posts fell 10% and truck posts increased 7%. Capacity was in demand in Northeast hubs including Philadelphia ($3.46/mile, up 16 cents) and Elizabeth, N.J. ($2.35/mile, up 10 cents), where traffic has been affected by winter weather. Reefer load counts and rates fell off sharply from Nogales, Arizona, as domestic produce begins to displace imports from the U.S.-Mexico border.

FLATBED MARKET: Flatbed load posts increased 3%, truck posts were up 2.5%, and the national average flatbed rate fell 2 cents to $2.40/mile. Key regional markets are showing strength:

– Las Vegas, $2.89/mile, up 7 cents

– Phoenix, $2.24/mile, up 6 cents

– Savannah, Ga., $2.78/mile, up 5 cents

– Houston, $2.65/mile, up 8 cents

– Harrisburg, Pa., $3.76/mile, up 18 cents

– Los Angeles, $2.53/mile, down 14 cents

Flatbed rates were softer in the Midwest last week, including outbound from Rock Island, Ill. ($3.03/mile, down 16 cents), and Cleveland ($2.64/mile, down 10 cents).

The national average price of on-highway diesel fuel remained near a three-year high at $3.03/gallon. Spot truckload freight rates include a fuel surcharge portion.