Spot market shows decent growth in October, reports DAT

Data recently issued by Portland, Oregon-based freight marketplace platform and information provider DAT a subsidiary of Roper Industries, in its DAT North American Freight Index show spot market activity for the month of October saw its best performance of 2016, save for the June seasonal peak.

DAT defines the North American Freight Index as a measure of conditions on the spot truckload freight market.

October spot market freight volume was up 1.8 percent over September and was paced by an 11 percent volume gain on the flatbed freight side, while van volume fell 0.6 percent and reefers were down 4.0 percent from September to October, said DAT, with the firm adding that the gain in flatbed volume may have been due to both energy exploration and construction that may have risen in part from post-Hurricane relief and rebuilding in the Southeastern U.S.

Other drivers for the significant gains in flatbed freight volume, according to DAT, included:

• a surge in volume and rates on eastbound, long-haul van lanes out of the West Coast, although declining volume in other regions prevented van volume from exceeding September levels; and
• west-to-east increases were likely due partly to rescheduling retail freight movements following the Hanjin Shipping bankruptcy and abundant fall harvests in California and the Pacific Northwest

Van freight rates headed up 1.4 percent from September to October despite lower volume, freight rates were down 1.2 percent, due to a seasonal decline, and flatbed rates saw a 0.6 percent increase.  

Total truckload freight availability rose 27 percent annually, with the number of spot market loads on the spot market topping same-month levels from the previous year, with October being the third straight month of annual increases. 

On the freight availability side, dry van freight availability saw a 51 percent increase in October annually, while reefer volume was up 44 percent. Flatbed freight volume was up 0.5 percent for its first annual increase in 16 months, said DAT.

Spot market rates in October saw annual declines for all three equipment types, with van down 2.7 percent, reefers down 1.2 percent, and flatbed off 4.6 percent. And average fuel surcharge was down 4.3 percent annually although the surcharge was up 10 percent from September to October