DAT reports spot market volumes rise 34 percent in March

March was a good month for the spot market, with spot market freight volume climbing 34 percent compared to February, according to recent data issued by Portland, Oregon-based freight marketplace platform and information provider DAT, a subsidiary of Roper Industries, in its DAT North American Freight Index.

DAT defines the North American Freight Index as a measure of conditions on the spot truckload freight market.

The firm said that March freight availability dropped 28 percent annually, explaining that the spring freight season typically commences in late March, but this year the lengthy winter contributed to what DAT called “unprecedented volume throughout the entire first quarter.”

From February to March, DAT said freight volume was up 34 percent for vans, 41 percent for flatbeds, and 20 percent for refrigerated (reefer) trailers. And rates for the same period were up 2.5 percent for vans, 2.8 percent for flatbed, and 1.7 percent for reefers.

On an annual basis, March volumes were down 19 percent for vans, 42 percent for flatbeds, and 1.3 percent for reefers, DAT said.

As for annual rate differences, DAT reported a 2.5 percent gain for vans and a 6.9 percent increase for flatbeds, while reefer rates headed up 6.4 percent. DAT said monthly average rates have been up annually for more than 20 months in a row.

A research note from Stephens Inc. analyst Brad Delco observed that spot market rates, excluding fuel, remained strong in March.

“Much attention has been given to spot market data throughout the quarter that suggests rates were down ~7.7% on average,” he wrote. “That said, spot rates excluding fuel were up +2.3% yoy through February (latest available data), which we believe is a strong data point given the weather-induced capacity crunch seen during 1Q’14 from weather. Spot rates should accelerate in the coming weeks/months heading into Spring peak season.”

Mike Regan, chief relationship officer, at TranzAct Technologies, said that a major difference in the market that is impacting spot market prices and availability is that “the excess capacity, or buffer, is gone or significantly less robust that it used to be and because of that you have a situation where you don’t have the capacity to set the network back to normal.”