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 showed that spot market volume and rates remained on a typical seasonal pattern.
DAT defines the North American Freight Index as a measure of conditions on the spot truckload freight market.
Spot market volume in February dropped 7.9 percent in February, following a 9.1 percent January decline. While this volume level represents typical seasonal norms, DAT mentioned that lackluster harvests in California and Florida were also factors in lower volumes. And it added that a rebound is expected in March, which is typical, and typically paced by incoming seasonal cargo, including spring fruit and vegetables, construction equipment and materials, and various consumer items.
Based on equipment type, van freight availability fell 21 percent in February, with refrigerated, or reefer, volume off 27 percent compared to January, and flatbed trailers up 26 percent.
As for spot market rates, vans and reefers were down 6.0 percent and 3.5 percent, respectively, compared to January, with flatbeds down 1.2 percent, which does not include fuel surcharges.
On an annual basis, DAT said that over all spot market freight availability was off 37 percent in February, which was in line with the 35 percent decline in February. This represents the 14th straight month of annual declines, which it said is due to a meshing of tepid freight growth and abundant capacity,
That sentiment was evident, with demand off 44 percent for van and reefer trailers, while flatbed freight volume saw a 24 percent annual decline. And line haul rates fell 11 percent for vans, 7.2 percent for reefers, and 7.7 percent for flatbeds on an annual basis.
DAT said that total rates paid by intermediaries to the carrier fell 18 percent for vans and 14 percent for reefers and flatbeds on an annual basis, with the caveat that the average fuel surcharge, which comprises a percentage of the rate, saw a 55 percent decline.
DAT Analyst Mark Montague said in late 2015 that current spot market spend is within 15 percent of historical norms. And with “disruption” currently absent, these rates are returning to a more normal level, while also carving out a new history in the form of an industrial-led recovery, while also being paced by inroads in the oil and gas sectors, as well as other ones, too.
Lower spot market rates served as a contributor to a decreased level of freight expenditures in the Cass Freight Index report, which was released by Cass Information Systems this week.