Post-holiday spot rate decreases continue for the van segments

The typical post-holiday cooldown in the van segments’ spot rates continued for a third week. Broker-posted rates in the Truckstop system were down in all segments during the week ended January 20 (week 3), but dry van and refrigerated saw the largest rate drops. Dry van rates have fallen below their pre-Christmas level, and refrigerated rates have given back almost all of their holiday rate surge.  Load activity in those two segments fell by far more than typical for the third week of the year.

Total spot volume fell 13.3% as a slight gain in flatbed loads was not enough to offset larger-than-usual declines in van segment loads. Total volume was about 59% below the same 2022 week and about 18% below the five-year average for the week. Load activity was down in all regions, led by the West Coast and Midwest. Truck postings increased 5.5%, and the Market Demand Index – the ratio of loads to trucks – fell to its lowest level in seven weeks.

The total broker-posted spot market rate fell about 6 cents for the second straight week. Rates were 19% below the same 2022 week but nearly 6% above the five-year average for the week. FTR estimates that rates excluding a calculated fuel surcharge were nearly 28% below the same 2022 week.

Dry van spot rates fell nearly 13 cents for the largest decrease in a single week since December 2021. Rates were down nearly 29 cents in the first three weeks of 2023 after jumping about 24 cents in the final two weeks of 2022. Dry van rates were nearly 29% below the same 2022 week and 0.2% below the five-year average for the week. Excluding a fuel surcharge, rates were about 39% lower than in the same 2022 week. Dry van loads fell about 24%. Volume was almost 61% below the same 2022 week and nearly 14% below the five-year average for the week after essentially matching the average in the prior week.

Refrigerated spot rates fell more than 18 cents. Rates were down nearly 65 cents in the first three weeks of the year after surging more than 67 cents in the final two weeks of 2022. Rates were more than 30% below the same 2022 week but 0.5% above the five-year average for the week. Excluding fuel surcharges, rates were 39% below the same 2022 week. Refrigerated loads fell more than 26%. Volume was about 64% below the same 2022 week and about 23% below the five-year average for the week.

Flatbed spot rates eased about 3 cents, reversing the gain during the prior week. Rates were about 13% below the same 2022 week but more than 9% above the five-year average for the week. Excluding an imputed surcharge, flatbed rates were nearly 21% below the same 2022 week. Flatbed loads ticked up about 1% to the highest level since August. Volume was almost 61% below the same 2022 week and about 26% below the five-year average for the week.

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