Flatbed Report: Higher oil prices boost spot rates for oilfield carriers – DAT Freight & Analytics


The vitality sector is a big contributor to flatbed demand, and spot charges for a lot of oil-producing lanes, similar to Texas to South Dakota, have elevated and remained elevated in comparison with 2021. In response to Baker Hughes, the nationwide weekly oil rig rely reveals a 52% y/y improve for the week ending August twenty sixth of energetic drilling rigs as drilling corporations react to latest provide and demand challenges. Weekly rig counts this August have averaged about 763 per week, whereas weekly rig counts in August 2021 averaged round 500 energetic rigs. Nonetheless, present drilling exercise remains to be beneath pre-pandemic ranges, the place the weekly common in August 2019 was 1157 energetic rigs, and August 2022 has declined 34% in comparison with 2019.

In Canada, the energetic rig rely can also be growing y/y and is round 29% increased than in August 2021.  CEO of Traffix, Chuck Snow, mentioned in a latest interview, that flatbeds to Edmonton, AB are in demand as a result of elevated oil costs, which permits for investing within the oil tar sands once more. In response to an article by the WSJ, funding within the Canadian tar sands has declined since 2014, primarily as a result of excessive greenhouse fuel emissions and poor returns to extracting the oil. Many worldwide vitality corporations have moved out of the oil sands; nevertheless, smaller independents and personal buyers are growing manufacturing.

All charges cited beneath exclude gas surcharges until in any other case famous.

 Capability continues to tighten within the Pacific Northwest markets of Medford and Portland following final week’s $0.05/mile improve to an outbound common of $2.96/mile. Load posts in Portland, the bigger of the 2 markets, have elevated by 11% m/m, and on the Phoenix lane, spot charges at $2.40/mile at the moment are simply over $0.20/mile increased than the earlier yr. Masses 1,200 miles to Denver have additionally been rising, growing by $0.20/mile since June to a mean of $2.29/mile. 

Within the important steel-producing market in Gary, IN, flatbed spot charges elevated by $0.13/mile final week to a market common of $3.04/mile. On the high-volume west to Minneapolis, spot charges reversed a 5-month slide, growing to $3.40/mile final week or about $0.46/mile decrease than the earlier yr. The alternative was the case on the run south to Pittsburgh, the place spot charges at the moment are $1.42/mile decrease than the earlier yr at $2.31/mile final week. 

After dropping by 37% over the prior seven weeks, flatbed load posts reversed course final week, growing by 12%. Volumes are nonetheless 55% decrease than the earlier yr and monitoring carefully with 2017 ranges, which took off in September of that yr as a result of affect of Hurricanes Irma and Maria. Gear posts decreased by 2% w/w, however the market nonetheless sees virtually 70% extra flatbed gear posts in comparison with 2018. Because of a surge in load posts, the flatbed load-to-truck (LTR) ratio decreased from 13.02 to 14.84.

With flatbed gear posts nonetheless at file excessive ranges, the market remains to be oversupplied, and regardless of a late-month surge in load posts, flatbed linehaul charges dropped by virtually $0.06/mile final week. At $2.24/mile spot charges have decreased by $0.41/mile for the reason that begin of June and at the moment are simply $0.02/mile decrease than the tip of August in 2018, thought-about a wonderful yr for flatbed carriers. Flatbed linehaul charges are $0.46/mile decrease than the earlier yr.


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