Spot market freight volumes for the month of April remained firmly on a typical seasonal trajectory, according to 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.
From March to April, DAT said that spot market freight volume fell 10 percent, with freight availability in April down 27 percent annually, highlighting the fact that the spot market a year ago was stronger, due in large part to coming off a difficult winter, as well as a tighter capacity environment in the truckload sector. This type of annual decline is not typical, though, as DAT noted that when compared to 2013 and prior years, April 2015 volumes showed annual gains compared to those years.
From March to April, DAT said freight volume was down 23 percent for vans, 25 percent for refrigerated (reefer) trailers, while flatbed volume was up 18 percent. And compared to April 2014, vans dipped 18 percent, reefers fell 4.9 percent, and flatbeds were off 38 percent.
Rates were mixed from March to April, with vans and reefers down 2.5 percent and 0.5 percent, respectively, and flatbeds rose 0.5 percent. On an annual basis, vans were up 4.6 percent, reefers were up 3.4 percent and flatbed rates increased by 3.9 percent.
DAT officials observed that while the line-haul portion of rates showed annual increases, carriers received a lower total rate overall because of lower fuel prices and related surcharges.
Ben Hartford, an analyst at Robert W. Baird & Co., commented in a research note that even though spot truckload demand is below the “robust” 2014 levels, it is still healthy. And he added that demand showed seasonal improvement through March and followed typical seasonal patterns into April as well.
As for lower spot market rates, a trucking executive explained in an interview that if a carrier gets 2.5 to 3 percent in the form of rate growth due to inflationary pressures, that is more than that is good.
“This year spot rates are lower due to fuel and more balanced capacity with carriers taking on more volumes beyond commitment which is something they did not have access to last year and that is what is causing a cautious outlook,” the executive said.