Skip to content
Search AI Powered

Latest Stories

Spot market rates hit record highs as truckers see hot freight demand, DAT says

Capacity will stay tight as grocery stores stock up for second Covid-19 wave and retailers fill shelves for holiday peak, firm forecasts.

DAT spot rate chart

Spot market rates for van and refrigerated freight soared to all-time highs in September as the market continues to see historically tight capacity conditions even as the nation hustles to make up for lost time during coronavirus lockdowns and prepare for a looming winter holiday peak season, according to online truckload freight marketplace DAT Freight & Analytics.

The third major trucking mode, flatbed, showed spot rates that were up from August as well, but fell shy of their high-water mark during the middle of 2018, Portland, Oregon-based DAT said.


“We’re seeing strong volumes across equipment types as the economy continues to recover, particularly in areas related to consumer spending. It’s good news for retail, but the industrial and energy sectors are still seeing a dip in volumes,” Ken Adamo, DAT’s chief of analytics, said in a release. “Spot market rates just keep climbing as companies turn to the spot market to help them manage imbalances in their supply chains.”

Looking at the amount of freight moving around the country, volumes for September spot van, reefer, and flatbed were similar to August but load-to-truck ratios increased across all three equipment types as available capacity tightened. That pushed the DAT Truckload Volume Index, a measure of dry van, reefer and flatbed loads moved by truckload carriers, to rise 6.1% from last month and rise 13% compared to September 2019.

Forecasting future conditions, DAT found that the market shows no signs of easing up. In one important sector, grocery store chains are adjusting their lean-inventory strategies and have begun stockpiling for a possible surge of Covid-19 cases in the fall and winter, DAT said. Likewise, major retailers have starting stocking up for the holiday shopping season earlier than usual and are lengthening their sales deals to accommodate shifting demand from consumers. For example, the historical holiday surge is now less monolithic, and features a series of separate spikes, such as Halloween, Thanksgiving, Black Friday, Small Business Saturday, Cyber Monday, Super Saturday, and Christmas

That accelerated inventory build-up in multiple sectors adds another dimension to an already “disjointed” freight market, as manufacturers work to avoid the inventory failures seen in March when coronavirus lockdowns first began, and consumers found shortages of cleaning supplies, toilet paper, and other household goods.

The Latest

More Stories

DHL graphic on online shopping marketplaces

DHL report shows seven factors about American online shoppers

Online merchants should consider seven key factors about American consumers in order to optimize their sales and operations this holiday season, according to a report from DHL eCommerce.

First, many of the most powerful sales platforms are marketplaces. With nearly universal appeal, 99% of U.S. shoppers buy from marketplaces, ranked in popularity from Amazon (92%) to Walmart (68%), eBay (47%), Temu (32%), Etsy (28%), and Shein (21%).

Keep ReadingShow less

Featured

schneider app screenshot for owner operators

Schneider seeks more business with owner-operators

Transportation and logistics service provider Schneider National Inc. is reaching out to owner-operators, encouraging them to do more business with the Wisconsin company using an updated digital platform.

Schneider says its FreightPower platform now offers owner-operators significantly more access to Schneider’s range of freight options. That can help drivers to generate revenue and strengthen their business through: increased access to freight, high drop and hook rates of over 95% of loads, and a trip planning feature that calculates road miles.

Keep ReadingShow less
Logistics economy grew in October

Logistics Managers' Index

Logistics economy grew in October

Economic activity in the logistics industry continued its expansion streak in October, growing for the 11th straight month and reaching its highest level in two years, according to the most recent Logistics Managers’ Index report (LMI), released this week.

The LMI registered 58.9, up from 58.6 in September, and continued a run of moderate growth that began late in 2023. The LMI is a monthly measure of business activity across warehousing and transportation markets. A reading above 50 indicates expansion, and a reading below 50 indicates contraction.

Keep ReadingShow less
port of vancouver

West coast dockworker strike could dent Canadian economy

The port worker strike that began yesterday on Canada’s west coast could cost that country $765 million a day in lost trade, according to the ALPS Marine analysis by Russell Group, a British data and analytics company.

Specifically, the labor strike at the ports of Vancouver, Prince Rupert, and Fraser-Surrey will hurt the commodities of furniture, metal products, meat products, aluminum, and clothing. But since the strike action is focused on stopping containers and general cargo, it will not slow operations in grain vessels or cruise ships, the firm said.

Keep ReadingShow less
trucks used by jillamy 3PL

Texas 3PL Mode Global acquires Jillamy’s freight brokerage arm

The Texas third-party logistics firm (3PL) Mode Global has acquired the freight brokerage business of supply chain service provider Jillamy, saying on Monday that the deal advances its strategy of expanding its national footprint.

Terms of the acquisition were not disclosed, but Mode Global said it will now assume Jillamy's comprehensive logistics and freight management solutions, while Jillamy's warehousing, packaging and fulfillment services remain unchanged. Under the agreement, Mode Global will gain more than 200 employees and add facilities in Pennsylvania, Arizona, Florida, Texas, Illinois, South Carolina, Maryland, and Ontario to its existing national footprint.

Keep ReadingShow less