Reefer Report: Double-digit growth in cross-border trade with Mexico – DAT Freight & Analytics

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The U.S. Financial institution Freight Cost Index confirmed development in Q2 2022 as one other indication {that a} freight recession isn’t on the quick horizon. The U.S. Financial institution Freight Cost Index is a quarterly publication representing freight delivery volumes and spend at nationwide and regional ranges. In keeping with the report, the nationwide truck cargo index grew 2.3% throughout the second quarter of 2022 after falling roughly the identical share every of the 2 earlier quarters; y/y, the shipments index has declined simply 0.9%. As well as, the variety of shipments elevated barely above the historic common as contract freight outperformed the normal spot market. 

At a regional stage, the q/q cargo development was sturdy within the Northeast area, up 7.3%, the Midwest area, up 6.8%, and the Southwest area, up 2.2%. Whereas the Southeast area had a 4.3% decline and the West area was down barely at 0.7%. Larger manufacturing output within the Northeast and Midwest areas is probably going driving the elevated volumes. Within the Southwest area, an elevated truck transported commerce with Mexico by way of the Texas crossings elevated by double-digits y/y. Within the West area, port exercise was nonetheless excessive; nonetheless, the amount general did sluggish in Q2. Within the Southeast area, some elements for the decline included poor retail gross sales and elevated service-related exercise as a result of sturdy tourism market.

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

In keeping with the USDA, nationwide weekly truckload volumes are down near 10% in comparison with the earlier two years for the top of July. Produce imports from Mexico are nicely previous their April/Could peak and are working simply 3% decrease y/y whereas volumes from Canada are up 5% y/y. There was a scarcity of vans reported in Southwest Indiana within the Evansville, IN marketplace for a great deal of watermelons and cantaloupes final week – reefer spot charges elevated by $0.04/mile to a mean of $2.91/mile. Hundreds from Evansville to Orlando, FL at $2.99/mile elevated by nearly $0.50/mile within the final 4 weeks.

On the West Coast in Fresno, reefer linehual charges proceed to chill following final week’s $0.04/mile lower to $2.33/mile whereas within the smaller San Diego market dominated by reefer imports from South America, reefer charges elevated by $0.03/mile to a mean of $2.84/mile. Following per week of trucker protests in Oakland, CA, outlound load publish volumes elevated by 7% w/w though capability continues to loosen with spot charges down for the fourth week in a row to $2.28/mile. 

Capability tightened in Jacksonville, FL, final week following a $0.20/mile leap in linehaul charges to $2.30/mile after load publish volumes elevated by 8% following a month of lowering volumes. Reefer capability was additionally tight in Miami with charges up $0.07/mile to $1.29/mile. In Pittsburgh, reefer capability was extraordinarily tight final week following a 22% w/w improve in load publish volumes leading to charges leaping by nearly $0.70/mile to $3.76/mile. Hundreds south to Orlando have been up additionally rising by the identical quantity averaging $2.44/mile final week or nearly precisely the place they have been the earlier 12 months. 

Load publish volumes elevated final week by 17% to be simply 5% beneath 2020 ranges for the top of July. Volumes are nonetheless 37% decrease than this time final 12 months and 9% decrease within the earlier month. It was no shock that reefer demand elevated throughout final week’s warmth wave throughout the U.S., leading to 6% fewer carriers posting their tools for masses than the earlier week. On account of greater load publish volumes and fewer tools posts, the reefer load-to-truck (LTR) ratio elevated 25% w/w to 7.48.

In comparison with the earlier week, final week’s reefer linehaul fee elevated by simply over a penny per mile to a nationwide common of $2.38/mile. Reefer spot charges are presently $0.54/mile decrease than the earlier 12 months and $0.03/mile greater than the place reefer spot charges have been in 2018, however $0.32/mile greater than the pre-pandemic common for this time of the 12 months.

Learn the complete weekly market replace.

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