• Spot Market Truckload Volumes Disappoint in May

    Source: Nasdaq GlobeNewswire / 11 Jun 2019 12:14:26   America/New_York

    PORTLAND, Ore., June 11, 2019 (GLOBE NEWSWIRE) -- Spot truckload freight volumes failed to meet expectations in May, said DAT Solutions, which operates the largest truckload freight marketplace in North America.

    The number of full-truckload van loads moved on the spot market declined 12% in May compared to April, according to the DAT Truckload Volume Index. Van load counts were down 10% compared to May 2018. Van trailers haul approximately 70% of all truckload freight.

    “Simply put, May was a disappointment in terms of load counts,” said DAT Senior Industry Analyst Mark Montague. “We’re accustomed to seeing higher volumes of retail goods, fresh produce, construction materials, and other seasonal spot truckload freight moving through supply chains at this time of year.”

    Trade and Tornadoes

    Uncertainty over trade agreements and slumping imports from China seemed to dampen truckload demand. Record rainfalls, flooding, and tornadoes also hampered freight movements in many parts of the country.

    Agriculture producers saw their supply chains disrupted by the weather, with many harvests ruined or delayed. As a result, refrigerated (“reefer”) volumes declined 8.3% month over month and fell 12% year over year.

    Flatbed load volume, which includes heavy machinery and construction material, dropped 9.3% month over month and 3.1% year over year.

    Freight Rates Retreat

    Spot truckload rates continued to track well below last year’s record levels.

    Compared to April, the national average spot van rate was virtually unchanged at $1.80 per mile, including a fuel surcharge. That’s 35 cents below the average for May 2018. The average reefer rate was $2.15 per mile, 1 cent higher than April and 38 cents lower than May 2018. The flatbed rate averaged $2.27 per mile, down 5 cents compared to April and 45 cents lower year over year.

    “After a lackluster May, June is shaping up to be a pivotal month for trucking,” Montague said. “We will know soon whether the volumes we expected in May were simply delayed. If so, the pent-up demand could boost seasonal volumes at the close of Q2.”

    About the DAT Truckload Freight Volume Index

    The DAT Truckload Freight Volume Index is based on load counts and per-mile rates recorded in DAT RateView, with an average of 3 million freight moves per month. Spot market information is based on transactions arranged by third-party logistics (3PL) companies, while contract volumes and rates are arranged between shippers and carriers, with no intermediary.

    About DAT

    DAT market trends and data insights are derived from 256 million annual freight matches and a database of $60 billion in annual market transactions. Related services include a comprehensive directory of companies with business history, credit, safety, insurance, and company reviews; broker transportation management software; authority, fuel tax, mileage, vehicle licensing, and registration services; and carrier onboarding.

    Founded in 1978, DAT Solutions LLC is a wholly owned subsidiary of Roper Technologies (NYSE:ROP), a diversified technology company and constituent of the S&P 500, Fortune 1000, and Russell 1000 indices. www.DAT.com

    Media Contact

    Eileen Hart, Vice President, Marketing & Corporate Communications
    DAT Solutions
    eileen.hart@dat.com
    503-672-5132

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e34cc35f-357f-4488-9cee-6ffc43fb08b0

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    DAT Spot Market Van Volumes & Rates

    Dry van load volumes declined 12% in May, compared to April. Spot market rates held steady at $1.80 per mile for vans, month over month but fell 35 cents below last year’s levels.
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