The housing market continues to chill following the 8% m/m lower within the variety of new single-family houses constructed in June. In accordance with the Census Bureau, the variety of new single-family houses constructed was 86,000 fewer than in Might and 179,000 lower than in June final 12 months. Constructing permits for future building had been additionally down 8% m/m and 9% y/y. For context, the variety of new single-family houses constructed in June was nonetheless 13% greater than in June 2018, through the peak of the 2018 freight market. That’s the equal of 115,000 extra houses constructed final month in comparison with 2018.
The star of the post-pandemic financial restoration is beginning to fade additionally as shopper confidence within the housing market drops. In accordance with the Nationwide Affiliation of Dwelling Builders’ month-to-month confidence index, the July studying of 55 is the second most vital decline within the index’s historical past. This time final 12 months, the index stood at 80. The same pattern was additionally reported by Fannie Mae, with Dwelling Buy Sentiment Index® (HPSI) dropping 3.4 factors in June to 64.8, its second-lowest studying in a decade. In accordance with Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, “In June, a survey-record 81% of shoppers reported that the financial system is on the unsuitable observe, suggesting that individuals seem like rising more and more annoyed with inflation and the slowing financial system”.
All charges cited beneath exclude gasoline surcharges except in any other case famous.
Following the prior week’s 52% w/w improve in load posts, flatbed capability remained tight in Lakeland, FL, following final week’s $0.05/mile improve to $2.02/mile. Masses to Greenville, SC, dropped to their lowest stage in 12 months at $1.43/mile, whereas hundreds to Atlanta adopted the identical pattern reducing from $0.16/mile in the previous few weeks to $1.37/mile. Alongside the Gulf Coast, spot charges had been a lot better for flatbed carriers. In Houston, spot charges had been up $0.06/mile to $2.93/mile, and in neighboring New Orleans, outbound spot charges elevated by $0.17/mile to a median outbound price of $3.36/mile.
In Nashville, TN, load put up volumes elevated by 20% final week, leading to capability tightening and a $0.16/mile improve to $3.41/mile. Savannah, the fourth largest port marketplace for imports, noticed load put up volumes improve by 23% final week whereas capability elevated, driving down spot charges by $0.13/mile to $3.05/mile. Despite the fact that load put up volumes are down 71% within the final month in Columbus, OH, flatbed capability stays tight following the earlier week’s $0.29/mile improve to $3.21/mile. Brief-haul hundreds to Louisville, KY, are up simply over $100/load in the previous few weeks to a median of $886/load.
Flatbed load put up (LP) volumes are inside 3% of 2020 ranges following final week’s 17% w/w lower. Volumes are actually 10% decrease than this time in 2018, having declined 35% within the earlier month. Tools put up volumes hit an all-time excessive surpassing the earlier document set in late 2019. The web impact on the flatbed load-to-truck (LTR) ratio final week was one other lower to 19.01, with solely 2019 recording a decrease LTR for the third week of July.
Flatbed linehaul charges have dropped $0.19/mile because the begin of the 12 months, with the vast majority of the lower occurring within the final seven weeks, with charges dropping $0.17/mile over that timeframe. Following final week’s $0.01/mile lower, the nationwide common flatbed spot price is simply over $2.48/mile, which is $0.22/mile decrease y/y however nonetheless $0.08/mile greater than in 2018.