Hurricane relief boosts spot market freight

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PORTLAND, OR – October represented the year’s strongest month for available freight this year, with the exception of a seasonal peak in June, the DAT North American Freight Index shows. And post-hurricane reconstruction efforts may be responsible for some of the shift.

The October volume was up 1.8% when compared to September, largely thanks to an 11% increase in flatbed freight. In contrast, van volume was down 0.6%. Reefers dropped 4%.

The data is compiled by DAT Solutions, which operates an electronic load board network.

“Flatbed freight is associated with energy exploration, as well as construction, which may have gotten a boost in October due to post-hurricane relief and rebuilding in the southeast,” DAT Solutions reports. “The atypical trend included a surge in volume and rates on eastbound, long-haul van lanes out of the West Coast, although declining volume in other regions prevented van volume from exceeding September levels. The west-to-east increases were likely due in part to re-scheduling of retail freight movements in the wake of the Hanjin Shipping bankruptcy, as well as abundant fall harvests in California and the Pacific Northwest.”

It wasn’t all bad news for van freight, with rates rising 1.4% in the month. Reefer rates experienced a seasonal 1.2% dip, but flatbed rates rose 0.6% over September.

Year over year, this October’s freight availability was up 27%, while October marked the third consecutive month of year-over-year increases

Compared to October 2015, dry van freight availability increased 51% last month, and reefer volume rose 44%. Flatbed freight volume edged up 0.5%, marking the first year-over-year increase for flatbeds in 16 months. 

Linehaul rates dropped across the board in the year-over-year comparison. Van rates were down 2.7%, reefers 1.2%, and flatbeds 4.6%. Fuel surcharges dropped an average 4.3% year over year, but rose 10% from September to October. 

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John G. Smith is Newcom Media's vice-president - editorial, and the editorial director of its trucking publications -- including Today's Trucking, trucknews.com, and Transport Routier. The award-winning journalist has covered the trucking industry since 1995.


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