Van spot rates rise in the latest week

Broker-posted spot rates in the Truckstop system for dry van and refrigerated van equipment recorded rare gains during the week ended July 5 (week 27), although the timing of the Independence Day holiday likely was a factor. Rates for both equipment types typically fall sharply during week 27, but most of the week preceded the holiday. In most years, almost all pre-holiday rate strength occurs during week 26. Further rate increases in the current week would be counter to seasonal expectations.

Unlike rates, volume fell sharply during the holiday week. Total load activity plunged 43.1% after a gain of about 10% during the previous week. Total volume was more than 11% below the same 2023 week and nearly 47% below the five-year average for the week. Total truck postings fell 16.1%, and the Market Demand Index – the ratio of load postings to truck postings in the system – dropped to its lowest level since December.

The total broker-posted rate increased 1.7 cents after ticking up a fraction of a cent during the prior week. Total rates have not risen in week 27 since 2019, which was the most recent year in which July 4 fell on a Thursday. Total rates were just 0.1% below the same 2023 week – the strongest y/y comparison since June 2022 – and 7% below the five-year average for the week. Rate increases during the current week (week 28) are rare, and distortions due to holiday timing would not be a factor.

Dry van spot rates rose 1.7 cents after rising nearly 5 cents during the previous week. Although dry van rates were up marginally in 2019’s week 27, this year’s increase was the first significant gain for the week since 2013 – another year in which Independence Day fell on a Thursday. Rates were about 2% above the same 2023 week but about 8% below the five-year average. Dry van loads fell 43.7%. Volume was nearly 13% below the same 2023 week and 42% below the five-year average for the week.

Refrigerated spot rates rose 7.4 cents after easing three-tenths of a cent in the prior week. The gain was the largest of only four increases for week 27 since 2008.  Rates were 8.5% above the same 2023 week – the strongest y/y comparison since February 2022 – but more than 2% below the five-year average. Refrigerated loads fell 29.5%. Volume was more than 4% above the same 2023 week but about 34% below the five-year average for the week. 

Flatbed spot rates declined seven-tenths of a cent after declining more than a cent in the previous week. As with van equipment rates, flatbed rates almost always fall during week 27, although they rose 2.5 cents in 2023. Rates were more than 2% below the same 2023 week and more than 8% below the five-year average. Flatbed loads plunged 47.1%. Volume was about 13% below the same week last year and more than 56% below the five-year average for the week.

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