Spot Freight Rates Higher Than Expected as Truckload Volume Dips

A gauge of the spot truckload freight market fell slightly last month but remained above levels from the same time the previous two years.

The DAT North American Freight Index fell 2.5% in April from the month before as volume remained above seasonal norms, signaling a solid start to the second quarter of 2017, according to DAT Solutions and its network of load boards.

Freight volumeincreased 60% in April compared to the same time a year ago as average spot truckload rates rose for vans, refrigerated, and flatbed freight, on both a month-over-month and year-over-year basis.

"It's not unusual for truckload freight activity to give ground in April, but national average load-to-truck ratios and rates last month were higher than expected," said Mark Montague, DAT industry pricing analyst.

While van demand declined 4.5% compared to March, the national average load-to-truck ratio was up 8% and rose 127% year-over-year.

The load-to-truck ratio measures the number of available loads for each truck posted on the DAT Network of load boards, and is an indicator of the balance between capacity and demand for freight services, according to the company.

That balance favored carriers in April, as indicated by an increase in the national average spot rate of $1.67 per mile for vans, up 4 cents compared to March and 17 cents higher when compared to April 2016, including fuel surcharges, but not accessorials or other fees.

The spot reefer freight market experienced a similar trend. Reefer demand declined 5.4% compared to March, but was 87% higher than compared to a year earlier. The load-to-truck ratio rose for reefers, and so did truckload rates. At $1.94 per mile, the average spot reefer rate was 7 cents higher compared to March and 14 cents better year-over-year.

In the flatbed segment, the national average rate increased 4 cents to $2.07 per mile compared to ...Read the rest of this story

Analysis: Look Deeper Into GDP Numbers for Better Trucking Insight

Photo: istockphoto.com/rimeimages

As you're reading this, one of first and most closely watched indicators of the overall economic performance of the American economy has been issued. And while it's the first major reading of how conditions are shaping up for 2017, you are best advised not to read too much into the figures, be it good or bad.

The federal government's reading of the gross domestic product, a measure of the country's total output of goods and services, had yet to be released at press time, but many analysts were expecting it to reflect an expansion of just a 1% to 2% annual rate. That's compared to a 2.1% rate in the final quarter of last year and 3.5% in the third quarter of 2016. In other words, the consensus is a less than stellar first quarter performance.

However, the first quarter can be a bit “quirky,” says Bob Dieli, chief economist at the commercial trucking market research firm MacKay & Company.

“Weather has increasingly become a factor in [the] first quarter,” he told HDT in an interview. Remember the Polar Vortex in early 2014? The extremely cold weather in much of the country killed GDP for the quarter. And while not as bad, the U.S. did get hit with some powerful weather last month.

“I would not put a whole lot of trust in the first [GDP] number for the first quarter,” Dieli said. Each quarterly GDP performance can be revised two times with more complete data, including foreign trade. And it's these foreign trade numbers than can play hell with trying to make sense out of the GDP when it comes to trucking.

As Uncle Sam counts it, when goods are imported, they count as a negative to the GDP. In contrast, export goods, because they are made in the U.S., are considered a ...Read the rest of this story

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East Manufacturing Names Truck Equipment an Authorized Dealer

Truck Equipment Inc., headquarters in Green Bay, Wis. Photo courtesy of East Manufacturing

East Manufacturing has named Green Bay, Wis.-based Truck Equipment Inc. its latest authorized East Dealer.

TEI will offer a full line of East trailers, including flatbed, drop deck, dump, and refuse trailers as well as parts and service. Its dump line includes aluminum frame and frameless dump trailers as well as steel trailers and aluminum truck bodies.

The dealer offers new and used trailer sales in addition to service, parts, truck equipment upfitting and graphics. TEI also offers rental, leasing and financing options.

“We are pleased to have TEI join the East dealer network,” said Dave de Poincy, president and chief operating officer of East. “They are another customer-focused dealer with the people and expertise to exceed our customers' expectations.”

Related: East Offers Hendrickson Trailer Air Disc Brake Option

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NTTC Names Lee Miller Chairman

Lee Miller Photo via Miller Transporters

The National Tank Truck Carriers has selected Lee Miller to serve as the organization's chairman of the board. The announcement was made at the group's annual conference in Chicago.

Miller is currently the president of Miller Transporters, which runs a fleet of 425 tractors and 1000 trailers. He succeeds Brian Wood, president of TransWood Carriers, who now serves as chairman of the association's executive committee.

NTTC is a trade association with over 550 member companies that specialize in bulk transportation services by cargo tanker throughout North America.

"I look forward to building on the strong foundation my predecessors have started," said Miller. "It is my intention, in the upcoming term, to focus diligently on working with my fellow carriers as we continue to expand NTTC's advocacy and education initiatives. My main focus will be to support the cause of safety at every opportunity."

Related: How Carbon Express Did a 180 on Safety

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Kinedyne to host cargo securement webinar

U.S. Venture Promotes Koel to Head its U.S. Gain CNG Division

Mike Koel Photo courtesy of U.S. Venture

U.S. Venture has promoted Mike Koel to president of U.S. Gain, the compressed natural gas division of the company.

Koel is tasked with continuing to build the Gain Clean Fuel brand and generate awareness of CNG as a clean option for fleets. He will also focus on expanding natural gas distribution channels for U.S. Gain.

“Mike has a passion for CNG and he led the thought process behind U.S. Venture entering into the CNG business,” said John Schmidt, U.S. Venture president and CEO. “He spearheaded the start of Gain Clean Fuel and his vision has led to new opportunities for the company.”

Koel was previously the vice president of business development for the U.S. Oil division. He joined U.S. Venture in 2001 as a trader, focused on refined products and ethanol supply. He has previous experience in the oil industry as well, including nine years as a natural gas trader and supply manager for Kaztex Energy Management, WPS Energy Services, and Howard Energy.

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