Spot Markets: Flatbeds Improved for the Tenth Week

Spot Markets: Van Rates Mixed as Flatbed Rates Climb Again

Dry Van and Reefer Rates Move in Opposite Directions

Spot markets showed a split in performance during the week ending April 18. Dry van and refrigerated spot rates moved in opposite directions for the first time this year. According to the latest update from FTR Transportation Intelligence, dry van spot rates dropped to their lowest level since late April 2024, while refrigerated (reefer) rates climbed to a 10-week high.

FTR pointed out that the Easter holiday might have played a role in the temporary boost for refrigerated freight. However, historical trends show that Easter does not always lead to a noticeable bump in reefer rates. Even so, increased demand for fresh foods and perishable goods around the holiday could have helped push rates higher this year.

The dip in dry van rates reflects ongoing challenges in the broader freight market. Excess truck capacity and softer freight volumes have continued to weigh down pricing, keeping dry van rates under pressure.

Flatbed Spot Rates Reach Highest Level Since 2022

Flatbed spot rates rose again during the week, hitting their highest level since October 2022. This marks several weeks of steady improvement for the flatbed segment.

The strength in flatbed demand is largely being driven by ongoing construction activity, seasonal building projects, and growth in manufacturing shipments. These industries typically rely heavily on flatbed trucking to move steel, lumber, heavy equipment, and other large or bulky items.

In fact, flatbed load postings have now increased for four straight weeks, suggesting that some sectors of the economy are maintaining strong demand even as others struggle.

This momentum in the flatbed market is a bright spot for carriers after a long stretch of declining rates across much of the trucking industry.

Spot Markets: Volume Trends Hold Steady

Despite the mixed movement in rates, overall spot market volume stayed relatively stable compared to the prior week. Dry van and refrigerated load postings dipped slightly, but these drops were offset by the continued rise in flatbed postings.

FTR’s data shows that the flatbed segment’s growth helped keep overall load volume from slipping further. This balancing effect is providing some short-term stability in the spot market, even as pricing conditions remain challenging for many carriers.

However, even with the slight uptick in flatbed activity, total spot volumes are still well below the levels seen during the freight boom years of 2021 and early 2022.

Outlook for Spot Markets Remain Cautious

While recent trends show signs of life in certain areas, analysts remain cautious about the overall rate outlook for the trucking industry. Dry van rates are expected to stay soft in the near term, and even the strength in reefer and flatbed markets may be temporary.

Economic factors like slower consumer spending, high interest rates, and lingering inventory adjustments are all playing a role in keeping freight demand in check. On top of that, overcapacity in the trucking sector continues to make it difficult for rates to recover in a meaningful way.

FTR warned that without a significant tightening in truck capacity or a sudden surge in freight demand, any rate increases seen in the market are likely to be modest and short-lived.

Seasonal Factors Could Add Some Support

Looking ahead, seasonal shipping patterns could offer some support to spot market rates as the year moves forward. Produce season traditionally boosts refrigerated freight demand, while construction activity tends to strengthen flatbed volumes during the spring and summer months.

However, FTR emphasized that broader economic conditions will have a bigger influence on whether rates can truly gain traction in the second half of the year.

If freight volumes do not pick up in a more meaningful way, or if too many trucks remain available to haul the available freight, carriers could continue to face rate pressures well into the peak shipping seasons.

Key Takeaways for the Spot Markets

• Dry van spot rates fell to the lowest level since April 2024, signaling ongoing softness in the freight market.
• Reefer spot rates hit their highest point in 10 weeks, possibly boosted by Easter-related demand for perishable goods.
• Flatbed spot rates climbed again, reaching the highest levels seen since October 2022 thanks to strength in construction and manufacturing sectors.
• Spot market volume remained steady overall, with flatbed load postings offsetting declines in dry van and reefer activity.
• Outlook remains cautious, with overcapacity and economic uncertainty keeping pressure on spot market rates despite seasonal shipping patterns.