Present-day Freight Market Conditions
Today we are going to talk about the present-day freight market conditions. We know this industry is all about time. We bring you a brief about present 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.
Key Points of This Week:
·Spot rates are falling again – the biggest drop in van prices so far this year.
·The volume of Mother's Day is not enough to stop the slippage of one-time rates.
· It was the largest week-over-week decrease in dry vans so far this year at about 6.2 cents per mile we were.
The last quarter was another strong quarter for carriers, mainly in the fixed and speciality sectors, as confirmed by the recent quarterly conference call with Daseke, Inc. (NASDAQ: DSKE), North America's largest dedicated flat transportation and logistics company.
Daseke's fleet includes about 4,565 tractors in total (down 6.3% YoY) and 11,051 platform and speciality trailers (down 3.7% YoY). The Texas-based company reported revenues of $421 million in the first quarter, up 26.1% year-over-year. The adjusted operating ratio for Q1 is 93%, an improvement on the operating ratio of 95.5% recorded in the same quarter last year.
Volumes after flat loading surged last week, rising 18%, and are now 27% higher than this time in 2018 and only 1% higher than the previous year. Volumes have increased by 27% over the past month, while transport equipment positions have grown steadily over the past five weeks. As a result, last week's LTR ratio grew by 49% w/w from 70.02 to 72.66.
After being relatively stable for the first four months of this year, flat rates fell for the third straight week after the decline of $0.03/mile last week. Prices for flatbeds ended the week at $2.64/excl thousand. FSC, which is about the same as last year at the same time, but $0.28/mile higher than the same week during the 2018 fixed rate rally.