Shipping and Logistics
July Ends with Higher Freight Volumes
Written by Sandy Williams
August 11, 2014
Truck freight volume rose 7.5 percent in the last week of July according to DAT Trends. Load to truck ratios increased across all three truck categories while the average spot market rates remained stable.
Flat bed truck demand increased by 6 percent while capacity declined 7.1 percent. The load to truck ratio for the week of July 27 through August 2 rose 14 percent, from 31.9 to 36.4 loads per truck.
The national average flatbed rate was down 3 cents from the beginning of the month but unchanged from $2.44 per mile the previous week. Four of the five regions posted averages above that rate except for California with an average of $2.20 for the week. The highest average flatbed rates was in the Northeast at $3.41 per mile
For the month of July flatbed load volume declined by 11 percent and capacity increased 14 percent. The resulting load to truck ratio fell 22 percent for the month. Compared to July of 2013 the flatbed ratio was 88 percent higher.
The national average flatbed rate for the month of July remained unchanged from June but was up 25 cents per mile from July 2013. A penny increase in the line haul rates offset a lower surcharge in fuel. Fuel prices declined 0.6 percent during July
DAT Trend analyst Mark Montague noted rates are drifting downward which is typical in July. However, Improving economic conditions, higher imports, and growth in manufacturing is likely to fuel increased freight demand and higher rates in mid-August through September. With consumer confidence at its highest level since October 2007, Montague expects retailers to expand inventories in preparation for a busy holiday season, impacting truckload volumes in the coming weeks.
Sandy Williams
Read more from Sandy WilliamsLatest in Shipping and Logistics
Reibus: Flatbed, dry van rates ticked up post-hurricanes
After closing the third quarter -3.84% on a y/y basis, our first look at fourth-quarter flatbed spot rates puts us virtually flat y/y, coming in at -0.68%.
Leibowitz: Thorny issues remain as ILA-USMX talks kicked into 2025
On Thursday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX), representing carriers and port operators on the East and Gulf Coasts, announced a three-and-a-half-month extension of the recently expired collective bargaining agreement. The extension kicks the can down the road until Jan. 15, 2025, after the 2024 election and the certification of the results on Jan. 6.
Ports strike over as longshoremen reach tentative pact with employers
The International Longshoreman's Association (ILA) union and the United States Maritime Alliance (USMX) reached a tentative agreement on wages on Thursday evening. The move ends a strike at East Coast and Gulf Coast ports that began on Tuesday and that had threatened significant supply-chain disruptions.
ILA rejects 50% raise, strikes ports on East Coast, Gulf Coast
The International Longshoremen’s Association (ILA) launched a strike just after midnight on Tuesday at East Coast and Gulf Coast ports. The work stoppage spans from New England to New Orleans. It came after a last-ditch offer by the United States Maritime Alliance (USMX), which represents maritime employers, failed to meet union demands.
Calls for talks as coastwide labor strike could hit supply chains on Tuesday
Unless a last-minute deal is struck by midnight on Monday, a massive work stoppage will hit ports up and down the East and Gulf Coasts on Tuesday and cause widespread supply chain disruption. Master contract negotiations remain stalled between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). The employer group took […]