Particularly in the last five months, the spot market where owner-operators and many smaller carriers find and price loads to haul has been on a road to recovery after a time when the spot market struggled, load board observers say.
Trucking industry experts and load board operators these days describe the spot market for freight as “seasonal” and “returning to normal” and “recovering” in the new year after it surged in 2021 but slumped for much of last year. The spot market is normalizing—it has been really for the last five months. Even though demand is relatively flat, we’ve got more trucks than loads, and that’s why rates will continue to go down through the first quarter.
This quiet season will be quieter than normal because of the economic conditions we are working with and mostly because there is an excess of capacity in the spot market against the backdrop of cooling demand. That’s why you’re seeing spot rates continue to decline longer term. In terms of monthly average rates, the van rate was up 2 cents over November, and the reefer rate was equal to November. Meanwhile, flatbed was 6 cents less per mile. The spot market continued a slump in November that began in earnest last spring and summer. Spot market rates in November were lower for all three equipment types.
Even though dry van business is down 40% compared to December 2021, it’s the second-highest level of load posts in the last six years. Why is that? Because there is more volume going into the spot market historically, and that trend will continue. Volumes are down, but they are still really good compared to prior pandemic years.
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