Total spot load postings in the Truckstop.com system increased 4% from the prior week during the week ended July 31 (week 30), and spot rates rose by the most in four weeks. Higher volume followed week 29’s slight easing, which had been the first decline since mid-April aside from weeks 21 and 26. However, loads during those two weeks were dampened by federal holidays. Loads and rates were higher in all three key segments – dry van, refrigerated, and flatbed.
Spot market volume continues to outperform seasonal expectations even though week-over-week volume increases during week 30 were relatively modest. The trend in the five-year average for each segment is flat or weaker for each segment. Load postings in week 30 were 59% higher than the five-year average and 58% above last year.
Total truck availability saw its second-largest increase since week 13. The largest increase came in week 26 and resulted – at least in part – from depressed truck postings during the prior week, which included the July 4th holiday. The increased truck postings were centered in van freight. Refrigerated truck availability was up 6.9%, strongest since week 19, and dry van truck availability rose 16.7%, strongest since week 13. However, flatbed truck availability was little changed, dipping less than 1%.
Truck availability in all three segments remain well below prior-year comparisons, but the dry van and refrigerated increases might indicate that the firming spot rate environment has hit an inflection point that could move more capacity into the spot market and dampen the extreme imbalance the market has seen for the past six to seven weeks. During this period, the van segments have exceeded even the extraordinary Market Demand Index – the ratio of loads to trucks in the Truckstop.com system – for the same 2018 weeks.
Another potential factor in increased truck capacity might be money from Washington or – more to the point – lack thereof. The Pandemic Unemployment Assistance (PUA) program that Congress created several months ago had established unemployment benefits for non-payroll workers, and that would include many independent owner-operators that operate in the spot market. However, a $600 a week federal payment under PUA ended last week, and it is unclear if or when Congress will restore at least some of those funds.
Dry van loads increased 6.4% from the prior week. Although the week-over-week growth was stronger in refrigerated, dry van remains the strongest segment in terms of its volume relative to prior-year comparisons. Volume is 79% higher than the five-year average and 88% above last year. Dry van loads have exceeded even 2018 for four weeks, although week 26 in 2018 was the peak of that market. All regions except the South Central region saw week-over-week growth.
Refrigerated spot loads rose 9.3% over the prior week. Volume was about 63% higher than the five-year average and 50% above last year. Volume exceeded the same 2018 week for only the second time since the extreme load postings in week 11. While the total refrigerated loadings growth for the week was highest of all segments, the regional variations were significant as the Southeast was basically flat, and loads were down nearly 4% in the South Central region.
Flatbed spot loads were up 2%. Volume is 50% higher than the five-year average and 56% above last year. Loads were higher than 2018 levels for only the second time since the first week of the year. West Coast and Midwest volumes were lower; other regions saw increases.
The broker-posted rate per mile excluding fuel surcharges increased about 6 cents and topped $2 for the first time since late 2018. Rates were 15% above last year and 8% above the five-year average. Dry van rates increased nearly 9 cents and were nearly 20% ahead of the five-year average and about 32% above last year. Refrigerated rates also were up about 9 cents and were 16% above the five-year average and about 27% above last year. Flatbed rates increased 5 cents and were 4% above the five-year average and 10% higher than a year ago.