Freight Market Conditions on March 2022
Today we are going to talk about the current freight market conditions. We know this industry is all about time. We bring you a brief about current freight market conditions so you can be updated with what is going on in the trucking industry market just by reading this summary we made for you.
·Dry Van & Reefer spot rates have dropped around $0.30/mile in the last month or approximately the same amount they skipped during the '21 Polar Vortex.
·Load post volumes near 2018 levels – equipment posts at 2019 levels
·New truck orders in March and April
All shippers have experienced supply chain disruptions and labour shortages, with lower on-time delivery rates and acceptance rates, as well as higher usage and spot rates. However, when we examine demand using the MSU for-hire truck transportation index, freight demand in 2021 was 1% below 2018 levels and similar to 2019, according to Assoc Prof. Jason Miller at Michigan State University’s Eli Broad College of Business.
Truck loading capacity in the Colorado markets of Grand Junction and Denver expanded rapidly last week – spot rates increased by $0.04/mile, averaging $1.65/excl mile. FSC after the decline for the previous three weeks. Over the past week, Colorado has been hit by snow, making it difficult for truckers to get anywhere from 1 to 70 people across the Rockies. On the other hand, last Tuesday Denver made the story of time as the coldest temperature the city has ever had and beating out a 109-year-old record. After averaging $1.35/mile excl. FSC for all of last year, spot rates last week jumped to an average of $1.90/mile excl. (FSC for loads from Denver to Los Angeles.)
On the East Coast at Charleston, WV, capacity also tightened last week after a 21% w/w increase in volumes after loading after declining over the previous four weeks. Spot rates jumped by $0.27/mile to an average outbound rate of $3.23/mile excl.
Dry van load post volumes dropped for the third week in a row and are now 30% lower than the previous year but remarkably double the same week in 2018. Carrier equipment posts have been relatively flat over the last three weeks resulting in the dry van load-to-truck (LTR) ratio continuing to slide. Last week the LTR decreased 7% w/w from 7.04 to 6.54.