Spot freight market demand eases toward equilibrium

Looking at recent trends, there has been a slow but steady easing in spot market freight volume since April. This was corroborated by the ATA For-Hire Truck Tonnage Report for July, which showed a 5% decline in tonnage, not seasonally adjusted. Bob Costello, Chief Economist at the American Trucking Associations (ATA), predicts that tonnage will increase moderately in the second half of 2010.

Meanwhile, spot market rates for vans and reefers are flat, and rates for flatbeds are declining, as summer wanes. Demand was extraordinarily high in Q2, and capacity was tight, so rates were higher than seasonal norms for all equipment types. The market may be on the way to recovering its equilibrium now.

Compared to July 2009, last month's tonnage was 6% higher, and spot market load volume was 128% higher -- that's more than double the number of loads, year over year.

Peggy Dorf

Peggy joined DAT in 2008 as a writer and market analyst. She was instrumental in developing DAT Trendlines, and she writes extensively about the impact of economic trends on companies and individuals in transportation and logistics. Peggy is a Certified Transportation Broker with decades of experience in technology marketing and an MBA from the Wharton School.



Comments

About DAT

DAT operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 256 million freight matches and a database of $60 billion of market transactions.

The Original Load Board - Trusted Since 1978

The company was established in 1978 as the Dial-A-Truck (DAT) load finder service at Jubitz® truck stop in Portland, OR.

TIA
OOIDA
CSCMP
MATS