Freight Market Update: Capacity Increases and Rates Decline Amidst Ongoing Supply Chain Disruptions

Overall

Overall, capacity has increased across all modes from the prior week. Spot load posts dropped 15%, while spot truck posts increased 1% over the same time period. Rates stayed flat or saw small decreases across all modes. Demand continues to be soft across most market sectors.

We expect to see some tightening of capacity and an increase in rates for Van freight during the holiday season.

Flatbed

• Load to Truck Ratio decreased 19% from the prior week resulting in more available capacity.
• Flatbed spot rates dropped 1% from the prior week and are down 13% from last year at this time.

Van

• Load to Truck Ratio dropped 18% from the prior week resulting in more available capacity.
• Van spot rates dropped 1% from the prior week and are down 14% from last year at this time.

Reefer

• Load to Truck Ratio dropped 7% from the prior week resulting in more available capacity.
• Reefer spot rates stayed flat from the prior week but are down 12% from last year at this time.

Fuel

• Fuel prices are down 2% from the prior week and 14% from last year at this time.

What does this mean for business?

The increase in capacity and the decrease in rates across all modes is good news for businesses. Businesses should be prepared for the possibility of higher rates for Van freight during the holiday season, but they should also be able to negotiate lower rates with carriers for other modes of freight.

Tips for businesses shipping in the current market:

Here are some tips for businesses shipping in the current freight market:

• Book your shipments early. This is especially important for Van freight during the holiday season.
• Negotiate with carriers. With overall capacity increasing, businesses may be able to negotiate lower rates with carriers.
• Consider using multiple carriers. This can help to reduce your reliance on any one carrier and give you more flexibility in case of capacity constraints.
• Be prepared for delays. With the ongoing supply chain disruptions, it is important to be prepared for the possibility of delays in transit.

Additional tips:

• Use a freight management system (FMS). An FMS can help you to automate your shipping process, track your shipments, and get the best possible rates from carriers.
• Consolidate your shipments. Consolidating your shipments can help you to save money on shipping costs.
• Consider using alternative shipping modes. If you are shipping goods that are not time-sensitive, you may be able to save money by using a slower shipping mode, such as rail or ocean freight.

By taking these steps, businesses can reduce their shipping costs and improve their efficiency in the current freight market.

It is also important to be aware of the following:

• The freight market is volatile and can change quickly.
• There is still some downward pressure on rates.
• The holiday season is a busy time for the freight industry, and there is a risk of capacity constraints.

Businesses should be prepared to adapt to the changing market conditions and take steps to mitigate risks.

If you have any questions about the current freight market or need help shipping freight, please contact us today. We're happy to help you find the best solution for your needs.

Contact Us: https://beemaclogistics.com/contact/

Observations provided by Allan Hutchinson, Director of Strategic Planning, based on the DAT Trendlines. For more information, visit https://www.dat.com/trendlines.