Spot Market Insights: Spot Rates Decline Mostly in Line with Seasonal Expectations

During the current week – i.e., the week before Christmas – dry van and refrigerated spot rates usually decline week over week while flatbed spot rates typically rise

Data from Truckstop and FTR Transportation Intelligence for the week ended December 13 shows mostly seasonal moves in broker-posted spot rates for the principal equipment types, especially accounting for some continuing distortions due to a later-than-usual Thanksgiving. Refrigerated spot rates fell sharply week over week, as they typically do during the second week following Thanksgiving. The previous week’s gain had been stronger than usual for the week after Thanksgiving. Dry van spot rates decreased as they always do during the second week after Thanksgiving, although the decrease was the smallest for a comparable week since at least 2008. The decrease in flatbed spot rates was broadly in line with historical changes, although flatbed has seen a few minor week-over-week increases during the second week after Thanksgiving in recent years.

During the current week – i.e., the week before Christmas – dry van and refrigerated spot rates usually decline week over week while flatbed spot rates typically rise. The week, including Christmas, invariably sees very strong rate increases – often the strongest of the year – due to capacity shortfalls. The final week of the year typically sees continued spot rate strength for van equipment, but flatbed’s rate performance is inconsistent.

The decline in load postings, coupled with the sharpest increase in truck postings in 13 weeks, resulted in a decrease of the Market Demand Index to 62.9, which is down from the previous week’s elevated level but otherwise the highest in more than a month.

 

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