Flatbed Report: Steel production at lowest since 2018


Flatbed carriers have moved round 42,000 fewer truckloads of metal this yr in comparison with the primary six months of 2022, based mostly on knowledge from the American Iron and Metal Institute (AISI). Excluding 2020, when international demand crashed, year-to-date metal manufacturing tonnage is the bottom since 2018. The AISI stories metal output within the U.S. within the week ending July 5, 2023, elevated by 1.2% in contrast with the identical time-frame in 2022. 12 months-to-date manufacturing by the tip of June was 42,486,000 web tons, down 2.9% from the 43,743,000 web tons throughout the identical interval final yr.  

Metal tonnage within the two main steel-producing areas elevated within the week ending July 5. Within the Nice Lakes area, manufacturing was up 1.2% w/w (7,000 tons), whereas within the Southern area, manufacturing was up 0.8% w/w (6,000 tons). The Midwest area reported decrease quantity, down 0.95% w/w ( 2,000 tons), whereas the smaller Western area reported 3.2% larger quantity (2,000 tons). State-level knowledge to the tip of Could reveals Indiana ranked first in tonnage after reporting a 0.6% m/m enhance – volumes are actually up 6% y/y. Ohio was ranked second in tonnage, down 2.9% y/y. Texas moved to 3rd in tonnage, down 10.7% y/y.  

Could metal imports have been down 2.6% m/m and 13.5% y/y. Essentially the most important suppliers have been Canada (628,000 web tons, down 6% m/m), Mexico (282,000 web tons, down 20%), Brazil (239,000 web tons, up 12%), South Korea (219,000 web tons, up 30%) and Germany (103,000 web tons down 4%).

Market Watch

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

Indiana accounts for round 24% of the nation’s metal manufacturing, primarily within the Gary freight market. At $2.67/mile, common state charges are $0.19/mile larger than the earlier week (after dropping for the earlier 5 weeks). Outbound flatbed linehaul charges paid carriers $2.62/mile final week, and for short-haul masses to Madison, WI, charges averaged $3.08/mile.

Capability continued to tighten in Atlanta, the place charges jumped $0.10/mile to $2.59/mile. Brief-haul masses to Birmingham paid carriers $678/load or $4.61/mile, whereas masses south to Lakeland paid $2.51/mile. Outbound common linehaul charges in Birmingham elevated by $0.03/mile to a mean of $2.63/mile. Statewide common linehaul charges in Florida elevated by $0.03/mile to $1.74/mile final week, an identical to 2020. Stable positive factors have been reported within the Jacksonville flatbed market, the place charges elevated by $0.08/mile to $1.86/mile. 

Load-to-Truck Ratio (LTR)

Flatbed spot market volumes have been on the lowest degree in seven years on the midway mark of the transport yr following final week’s 34% drop in quantity. Load posts are 77% decrease than the earlier yr and 41% decrease than in 2019. Provider tools posts have been down 28% final week, leading to final week’s flatbed load-to-truck (LTR) ratio reducing from 8.74 to 7.95.

Spot Charges

After primarily being flat in Could and June, flatbed linehaul charges have decreased by $0.07/mile within the final month following final week’s $0.02/mile decline. At $2.09/mile, the nationwide common flatbed spot fee is $0.39/mile decrease than the earlier yr and round $0.09/mile larger than in 2017 and 2019.

The submit Flatbed Report: Metal manufacturing at lowest since 2018 appeared first on DAT Freight & Analytics – Weblog.


Please enter your comment!
Please enter your name here