Strong load-to-truck ratios during the final week of 2016 led to some of the highest spot truckload rates of the year, according to DAT Solutions and its network of load boards.
The number of posted loads outpaced trucks during the week ending Dec. 31, traditionally a slow period for freight. Load availability fell 17% while capacity dropped 29%, however, tighter capacity led to higher load-to-truck ratios. Flatbeds posted the biggest gain, 27%, hitting 26.8 to 1, followed by reefers adding 19% at 11.2 to 1. Vans increased 9% at 4.3 to 1
This also lead to upticks in spot rates in the three major categories, with all tying or setting new four-week highs. Vans and reefers each added 2 cents from the previous week, hitting an average of $1.73 per mile and $1.99 per mile, respectively. Flatbeds increased 1 cent for an average of $1.95 per mile.
Spot rates include a fuel surcharge. The national average price of on-highway diesel rose nearly 2% during this time, hitting to $2.59 per gallon.
Van load posts fell 22% but truck posts dropped 29%. While activity slowed overall, retail distribution centers continued to drive van freight activity as shippers rushed to move loads before they closed the books on 2016, according to DAT. This led to higher rates out of several key markets, due to strong retail trade:
Los Angeles, $2.16 per mile, up 5 centsColumbus, $2.14 per mile, up 7 centsDallas, $1.60 per mile, up 4 centsAtlanta, $1.99 per mile, up 6 centsPhiladelphia, $1.77 per mile, up 6 centsWhile van trends were positive last week, reefer trends were off the charts. That's because the shipment of southern crops happened to overlap with additional demand for fall crops that moved out of storage, reported DAT.
There was more demand for reefers in the Midwest to prevent freezing of temperature-sensitive