Freight Market Update – Week of March 12
The freight market continues to show mixed conditions this week. Some segments are beginning to tighten while fuel prices are starting to put more pressure on operating costs. Overall activity is steady, but the recovery across the market remains uneven. Spot market rates have moved slightly week over week. Dry van rates are averaging around $2.36 per mile and have softened slightly. Reefer rates are around $2.75 per mile and are also down a few cents from last week. Flatbed continues to be the strongest segment, averaging around $2.70 per mile, with demand supported by construction, infrastructure, and equipment freight. Load volumes posted across the DAT marketplace remain solid but were down about four percent week over week. Truck posts also declined slightly. When both loads and trucks move down together it typically indicates capacity tightening a bit, which can help stabilize rates in the short term. Current load-to-truck ratios continue to show where the strength in the market sits. Dry van is running around eight loads per truck, reefer is roughly fifteen loads per truck, and flatbed remains extremely strong with around seventy loads per truck in many areas. This is a clear signal that flatbed demand is outpacing available capacity in several regions. Fuel is the biggest variable right now. Diesel prices have moved higher again and the national average is approaching the upper $4 range per gallon in many markets. Some regions saw nearly a dollar increase within the last couple weeks. If diesel continues to climb, we will likely see fuel surcharges increase and some smaller carriers pull capacity off the road temporarily. What this means for carriers right now is fairly straightforward. Flatbed operators continue to see the strongest opportunities. Dry van and reefer remain softer but relatively stable compared to earlier in the cycle. Fuel costs are becoming the largest pressure point for fleets heading into spring. Looking forward, produce season will begin to influence reefer demand in several southern regions, which may help lift those rates. If fuel continues to climb and capacity tightens further, we could start to see upward pressure on rates moving into the second quarter.