Connect with us

Business

Demand for vans, reefers on spot market especially strong

Published

on

PORTLAND, Ore. — Demand for vans and refrigerated trucks on the spot truckload freight market was exceptionally strong during the week ending December 1, according to DAT Solutions, which operates the DAT network of load boards.

The national average van rate and reefer rate increased 1 cent per mile while the flatbed rate held steady, halting an eight-week decline. Load-to-truck ratios increased for all three equipment types.

As expected, load posts and truck posts increased significantly in a week that follows a holiday-shortened week.

The number load posts was up 54 percent while truck posts gained 21 percent. Demand is expected to remain strong through the holidays.

National average spot truckload rates:

  • Van: $2.08/mile, up 1 cent compared to the previous week
  • Flatbed: $2.40/mile, unchanged
  • Reefer: $2.47/mile, up 1 cent

Van trends: Van load posts increased 39 percent and truck posts increased 23 percent compared to the previous week. The van load-to-truck ratio rose from 6.4 to 7.2.

Rates were higher on 63 of the top 100 van lanes, including several that are strong for retail freight:

  • Columbus to Buffalo, up 31 cents to $3.99/mile
  • Philadelphia to Columbus, up 20 cents to $1.84/mile
  • Seattle to Spokane, up 31 cents to $3.78/mile

Outbound rates from Los Angeles are 11 percent higher than they were a month ago, but several lanes declined last week, including L.A. to Dallas, down 24 cents to $2.41/mile.

Flatbed trends: Flatbed load posts skyrocketed 103 percent last week while truck posts increased 34 percent. That caused the national load-to-truck ratio to jump from 15.9 to 23.9.

Reefer trends: Reefer load posts surged 46 percent, more than expected when going from a holiday week to a non-holiday week, and truck posts increased 10 percent. That caused the national load-to-truck ratio to jump from 6.2 to 8.3 loads per truck.

With the holidays approaching, meat and potato-growing regions in the Midwest saw big upticks in reefer volumes, and fresh fruit and vegetables boosted load counts out of California.

The biggest reefer rate increases were scattered on lanes across the country:

  • Los Angeles to Denver, up 29 cents to $3.52/mile
  • Elizabeth, New Jersey to Boston, up 28 cents to $4.43/mile
  • Grand Rapids to Philadelphia, up 35 cents to $3.98/mile
  • Dallas to Houston, up 19 cents to $3.05/mile

Twin Falls, Idaho, to Baltimore—a long-haul reefer lane—gained 24 cents to $3.26/mile.

DAT Trendlines are generated using DAT RateView, which provides real-time reports on spot market and contract rates, as well as historical rate and capacity trends. The RateView database is comprised of more than $57 billion in freight payments.

DAT load boards average 1 million load posts per business day.

For the latest spot market load availability and rate information, visit www.dat.com/trendlines and follow @LoadBoards on Twitter.

 

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Daseke names Chris Easter as chief operating officer

Published

on

Chris Easter brings more than 30 years of operational leadership experience to Daseke. (Courtesy: DASEKE)

ADDISON, Texas — Daseke, a flatbed and specialized transportation and logistics provider in North America, has named Chris Easter as the company’s chief operating officer.

Easter brings Daseke more than 30 years of operational leadership serving in key transportation and logistics roles with the United States Army, Walmart and Schneider National.

For the past six years, he served as CEO of Keen Transport, a specialized transportation, warehouse, and logistics company focused on serving the industrial equipment market.

During more than a decade with Walmart, he was responsible for overseeing the transportation of goods from around the world.

Easter graduated from the United States Military Academy at West Point; he then served in the U.S. Army, where he was a leader in heavy machinery logistics.

Easter was awarded the Bronze Star during Operation Desert Storm.

Believing in giving back to the industry, he serves the industry on the Board of Directors for the Specialized Carriers and Rigging Association (SC&RA).

As COO, Easter will be responsible for overseeing the industry-leading scale that Daseke has built over the last decade-plus, according to Don Daseke, chairman and CEO.

His efforts will be geared towards driving organic revenue growth, expanding EBITDA margins and maximizing free cash flow, Daseke said.

“Chris Easter’s in-depth knowledge of flatbed and specialized transportation, broad background in large- scale logistics, and proven ability to build and lead teams gives me great confidence in the bright future for both Chris and Daseke,” Daseke said “He has gained my respect, as we have built our relationship over the past several years. Daseke has the deepest management talent bench in flatbed and specialized transportation. Chris is the right person to lead our operations and develop our people’s talent as we fully leverage the scale we have built.”

“I’ve watched Don and the Daseke team build an exceptional organization focused on flatbed and specialized transportation and logistics, to where Daseke is uniquely positioned and respected in the marketplace,” Easter said. “I am excited to work with the entire team to enhance our growth while continuing to deliver superior customer service.”  8

Continue Reading

Business

Cass Index: Despite December declines, transportation shows strong economy

Published

on

With all of 2018 in the record books, it is clear that 2018 was an extraordinarily strong year for transportation and the economy, Cass Information Systems said in its December report. ©2019 Fotosearch

ST. LOUIS — December was a month of growing uncertainty and severe declines in the U.S. financial markets as equity valuations fell (the Dow Jones fell from 25,826 on December 3 to as low as 21,792 on December 24), most commodity prices continued to be weak (oil, copper, lumber, etc.), and interest rates declined (after peaking at 3.24 percent on November 8, the 10-year Treasury yield fell from 3.01 percent on November 30 to 2.56 percent on January 3).

Large multi-national companies lowered guidance and blamed slowing rates of activity in Europe and — to a lesser extent — Asia. Trade talks with China continued without resolution, and indications that the Chinese economy is beginning to suffer began to leak out.

But despite all the “hand-wringing” on Wall Street, the transportation economy continues to signal economic expansion, according to the December Cass Information Systems Freight Index Report prepared by Donald Broughton, founder and managing partner of Broughton Capital, a deep data-driven quantimental economic and equity research firm.

“The uninfluenced-by-human-emotion hard data of physical goods flow confirms that people are still making things, shipping things and buying/consuming things, perhaps not at the scorching pace attained earlier this year, but still at an above-average pace,” Broughton wrote.

The report said industry stakeholders were not yet alarmed about the volume of shipments going negative for the first time in 24 months (-0.8 percent in the month of December), in part because December 2017 was an all-time high for the month, and in part because of the stabilizing patterns seen in almost all of the underlying freight flows.

“However, we would be negligent if we did not acknowledge as we did in last month’s report two storm clouds on the economic horizon,” Broughton said.

Those are:

  • The tariffs and threats of even higher tariffs with China, the world’s second-largest economy (even though the latest headlines and tweets suggest that there may be a resolution). Tariffs have throttled volumes in some areas of the U.S. economy, most notably agriculture exports and other select raw materials.
  • The decline in WTI crude in December to as low as $42.50 a barrel. “This did not fall below the marginal cost of production for fracked crude in almost all areas of the U.S., but it made it less profitable and significantly lowered the incentive to drill ever more holes, effectively slowing the rate of growth in the industrial economy,” Broughton said, noting that crude’s recent rally (above $52 in mid-January) gives transportation a momentary sigh of relief. “Continued strength in the price of crude makes us more confident in our positive outlook for the U.S. industrial economy and less worried about global demand,” Broughton said.

“With all of 2018 ‘in the record books,’ it is clear that 2018 was an extraordinarily strong year for transportation and the economy,” Broughton said. “Every month from March to October exceeded all levels attained in all months in 2014 (a very strong year), while February was roughly equal to the peak month in 2014 (June 2014 – 1.201 vs February 2018 – 1.198), which is extraordinary.”

The Cass Expenditures Index is signaling continued overall pricing power for those in the marketplace who move freight.

Demand is exceeding capacity in most modes of transportation by a material amount. In turn, pricing power has erupted in those modes to levels that spark overall inflationary concerns in the broader economy.

With the Expenditures Index up 10.0 percent in December, Broughton said, Cass understood the concerns about inflation, but are comforted by four factors:

  1. Almost all modes of transportation are using the current environment of pricing power to create capacity, which will first dampen and eventually kill pricing power
  2. Spot pricing (not including fuel surcharges) in all three modes of truckload freight (dry van, reefer, and flatbed) has already been falling for six months
  3. The cost of fuel (and resulting fuel surcharges) is included in the Expenditures Index, and the cost of diesel was up 6.6 percent in December (but has been steadily falling in recent weeks, suggesting lower fuel surcharges in coming weeks), and
  4. Whether driven by capacity addition/creation or lower fuel surcharges — or a combination of both (our best guess) — the Expenditures Index was sequentially declining, before sequentially improving slightly (up 1.9 percent in December). The November Index was already down 4.9 percent from its peak in September, and down 2.4 percent from October.

To view the full report, click here.

 

 

 

 

 

Continue Reading

Business

ACT Research: CV build strong in 2018, economic risks in sight

Published

on

Heavy-duty build rose 4,500 units above the OEMs plan for December. (Courtesy: VOLVO TRUCKS)

COLUMBUS, Ind. – The desire to get Class 8 trucks built and out the door for 2018 taxation benefits drove a build plan beat in December, according to ACT Research’s (ACT) latest State of the Industry: Classes 5-8 Report.

“Heavy-duty build rose 4,500 units above the plan in December, and we assume the surge was largely overtime based,” said Kenny Vieth, ACT Research president and senior analyst. “Indicative of current market strength, cancellations, which had been elevated, dropped to a five-month low.”

The report also noted that macro-economic indicators are flashing yellow, with concerns ranging from tariffs and trade wars to a global economic slowdown and falling commodity prices, as well as a flat yield curve, quantitative tightening, and sharply lower equity valuations.

OEMs experienced their best month of 2918 in December when the sale of 26,083 Class 8 trucks pushed the 2018 total to 250,627 units, an increase of 30.4 percent over 2017 when 192,243 units were sold, according to data provided by WardsAuto.

Regarding the medium duty markets, Vieth commented, “An in-line build rate allowed the medium duty backlog to end the year at a 12-plus year high, with benign cancellations. Unlike the heavy-duty segment, however, medium duty inventories remain elevated.”

ACT Research is a publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasting services for the North American and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies.

More information can be found at www.actresearch.net.

 

 

 

 

 

Continue Reading

Trending