July spot market freight volumes top June, reports DAT

While the gain was minimal, DAT said that this marked the first time July topped June since the index was launched in 1996, with the firm adding that freight volume typically trends down from June to July, with the average June to July decline more than 20 percent over the last decade.

By ·

Data recently issued by DAT, a subsidiary of Portland, Oregon-based TransCore, found that spot market freight volumes as reported by DAT’s North American Freight Index were up 0.5 percent in July.

While the gain was minimal, DAT said that this marked the first time July topped June since the index was launched in 1996, with the firm adding that freight volume typically trends down from June to July, with the average June to July decline more than 20 percent over the last decade.

DAT officials said that this occurrence is due in part to pent-up demand for flatbeds because of weather-related delays in housing starts and a robust harvest which contributed to July demand for refrigerated trailers in the West and Midwest regions.

“What we saw in July can be viewed as exceptional, considering the high level of sequential declines we usually see and expect for that period,” said David Schrader, senior vice president of DAT’s freight matching business, in an interview.

For July, DAT reported that flatbed loads were up 6.0 percent, reefer freight availability was up 1.8 percent, and van loads fell 6.2 percent on a sequential basis.

The firm added that year-over-year freight availability increased 13 percent as volume for all equipment types was up, with flatbed volume, reefer loads, and van freight up 20 percent, 26 percent, and 6.8 percent when compared to July 2012.

Spot market rates in July, which typically decline for the month as capacity becomes available in certain parts of the country, mostly followed that trend, with flatbed rates up 1.2 percent but vans were down 0.7 percent, and reefers dipped 3.4 percent, due to more truckload capacity coming online to meet seasonal demand.

Compared to 2012, DAT said that flatbed and van rates dropped 6.7 percent and 2.1 percent, respectively, on an annual basis while reefer rates headed up 1.2 percent.

Schrader said that the decline in flatbed and van rates was expected largely because of the record-level rates that occurred in July 2012. And so far in August he said there is a bit of a rebound taking place for both flatbed and reefer rates in terms of volumes.

“We are seeing acceleration in August on an annual basis,” he said. “It is very strong relative to August 2012, which was more of a typical freight shipping season, whereas it seems more elongated this year, due to what happened with weather-related housing starts and growing season in the Midwest. Another factor is the impact of motor carrier Hours-of-Service, which is likely in the mix as well.”


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

DAT · Rates · All Topics
Latest Whitepaper
SaaS Supply Chain Management Systems
A guide to better understanding the market, the software and the benefits
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Digital Evolution: Streamlining Logistics and Supply Chain Operations
In this FREE virtual conference we'll define the challenges facing operations and offer solutions designed to create dynamic, automated networks that offer seamless communication, improved collaborative third-party relationships, and the ability to respond to changes at a moment's notice.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...