Refrigerated Spot Rates are the Highest Since January

With load postings increasing slightly and truck postings falling, the Market Demand Index ticked up to 61.7, the weakest level in 10 weeks except for the prior week

Data from Truckstop and FTR Transportation Intelligence for the week ended November 22 shows a spot market still tracking closely with last year – however, the timing of Thanksgiving calls for some adjustments in the analysis. Thanksgiving usually falls in a week comparable to the week ended November 22 as it did last year. The result is a distortion in y/y comparisons for spot rates, especially spot volume. Broker-posted spot rates for refrigerated equipment saw their biggest increase since May to the highest level since January. Large increases in refrigerated spot rates are the norm for the week before Thanksgiving. Dry van spot rates rose modestly while flatbed rates eased. The week that includes Thanksgiving – this year, the week ending November 29 – usually produces a strong increase in dry van spot rates as pressure from last-minute Black Friday stocking runs into a holiday-related drop in capacity. In recent years, refrigerated spot rates typically decline during Thanksgiving week as the week before is when food deliveries are under greater pressure. Moves in flatbed spot rates have been inconsistent during Thanksgiving week.

With load postings increasing slightly and truck postings falling, the Market Demand Index ticked up to 61.7, the weakest level in 10 weeks except for the prior week.

 

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