Trucking: Truckload spot market in July remains strong, says TransCore

Spot market truckload volumes in July were strong, representing the seventh straight month of record same month spot market freight availability and were up 22 percent on an annual basis, according to new data from TransCore.

This strong performance followed June, which saw the second highest monthly volumes in 2011, next to March, and are the two highest volumes in the 15 years TransCore has been tracking this data.

July volume was down 24 percent compared to June, and TransCore officials said that over the previous ten years July spot market load volumes have declined an average 19 percent on a sequential basis.

Shippers and carriers alike have told LM in recent weeks that the spot market is still attracting top dollar rates, as carriers are reluctant to add capacity at a time when the economic recovery appears tenuous, retail sales are flat, unemployment is high, and gas prices are about a dollar higher than they were a year ago at this time.

“Carriers today are not interested in adding capacity, because rates today are about equal to what they were in 2006,” said Lana Batts, a partner at Transport Capital Partners, in a recent interview. “The price of a truck has gone up from $80,000 to $120,000 and fuel is up, too. Everything is more expensive, and the industry is still charging 2006 rates. It is not sustainable. Trucking is not as easy of a business to get into as it was before.”

TransCore also reported that truckload freight rates were mixed on a seasonal basis in July for all equipment types, with the national average rate—excluding fuel surcharges— down 3.6 percent in July for dry vans compared to June and flat compared to July 2010. The firm said that rates for reefer vans were down 9.4 percent in July compared to June and up 0.6 percent annually. Flatbed rates were flat compared to June and up 11 percent annually.