The American Trucking Associations’ (ATA) superior seasonally adjusted (SA) For-Rent Truck Tonnage Index rose 2.8% in August after reducing 1.5% in July. In contrast with August 2021, the SA index elevated 7.4%, the twelfth straight year-over-year achieve and probably the most important enhance since June 2018. In 2022, year-to-date, and in contrast with the identical interval in 2021, tonnage was up 3.9%.
“Tonnage snapped again in August after a weaker than anticipated July,” stated ATA Chief Economist Bob Costello. “With the economic system in transition to slower progress and altering client patterns, we might even see extra volatility within the months forward. However the excellent news is that we proceed to witness areas of freight progress in client spending and manufacturing, which helps to offset the weak spot in new residence development.”
One other indicator of constructive tonnage for August was the shipments part of the Cass Freight Index®. Shipments rose 3.6% on a y/y foundation in August, and on a seasonally adjusted (SA) foundation, shipments rose 5.5% m/m and had been simply 1.2% under the cycle peak degree in December 2021. In line with the report, the enhancements had been doubtless pushed by profitable discounting in retail, seasonal stock builds, easing provide constraints, and restoration from the China lockdowns. As well as, in Philadelphia’s federal reserve Manufacturing Enterprise Outlook, companies had been requested to estimate their whole manufacturing progress for the third quarter ending this September in contrast with the second quarter of 2022; 56% reported anticipated will increase in third-quarter manufacturing.
Market Watch
All charges cited under exclude gas surcharges except in any other case famous.
Load posts in DAT’s High 10 freight markets, representing 26% of whole load posts, elevated by 2% final week, reversing the three-week spot fee decline. Dry van linehaul charges elevated barely, rising by $0.01/mile to a High 10 common of $2.00/mile. Notable market movers embrace Los Angeles and Chicago, the place spot charges elevated by $0.03/mile to an outbound common of $2.09/mile and $2.23/mile, respectively. On the two,000-mile long-haul lane from Los Angeles to Chicago, spot charges elevated to $1.78/mile final week, which is $0.11/mile greater than the August common however nearly $1.00/mile decrease than the earlier 12 months.
In Chicago, the place load posts had been up by nearly 2% final week, spot charges for masses to Atlanta have risen by practically $0.40/mile since June, averaging $2.40/mile the earlier week. In distinction, masses 760 miles east to Philadelphia have been flat at $2.37/mile for the 4 months. In south Texas, outbound dry van capability tightened for the third week in McAllen, San Antonio, Austin, and Houston markets following final week’s enhance of $0.01/mile to $1.84/mile. Hundreds moved between Houston and Dallas elevated by 6% final week, though dry van capability is the loosest in 12 months, with masses paying $165/load lower than the earlier 12 months at $560/load final week. This lane has been fairly balanced from a quantity perspective for over a 12 months. With spot charges in the wrong way from Dallas to Houston following the identical northbound development, spherical journey charges are nonetheless averaging $2.24/mile or $0.36/mile greater than the nationwide common.
Load-to-Truck Ratio (LTR)
Dry van load posts had been flat final week, monitoring round 35% decrease than the earlier 12 months however 22% greater than in 2018, when freight demand was sturdy and capability tight. Tools posts had been additionally flat final week however 11% greater y/y and 25% greater than the identical week in 2018. Because of this, the dry van load-to-truck ratio (LTR) elevated by lower than 1%, from 3.60 to three.63.
Linehaul Spot Charges
There was little or no change in final week’s dry van spot fee after reducing by $0.07/mile within the earlier month to a nationwide common of $1.86/mile. In comparison with the highest 50 dry van lanes, which averaged $2.24/mile final week, the nationwide common was $0.38/mile decrease. Like reefer linehaul charges, dry van continues to be $0.20/mile greater than the typical of pre-pandemic years.
