Another month, another update from DAT Freight and Analytics. In spite of everything going on in the world right now, freight rates have appeared to stabilize somewhat for the previous month.
- Average dry van rates were $2.69, a two cent decrease.
- Average flatbed rates were $3.44, a one cent decrease from before.
- Average reefer rates were $3.05, a drop in three cents.
- The overall average dropped from $3.08 to $3.06.
So now the question is what has caused this slight trend reversal from May 2022, where dry van and flatbed increased over time. The most likely culprit? An increase of supply in the number of truckers competing for contracts and loads. With the trucking industry experiencing record employment, more people are chasing a similar number of goods as there were before, and under the basic law of economics, prices decrease.
Flatbed still reigns supreme as the most lucrative form of hauling, with the gap widening another two cents to 39 cents per mile. This is quite an oddity for the summer months, when someone may be inclined to believe the demand for refrigerated hauling is larger than it would be in the winter, but it appears as though demand for construction materials is through the roof (pun not intended) and is overshadowing its brother for the time being.
At this point, an attempt to predict the future of freight rates would be a fool’s errand. When it comes to what the rates will be at the end of the year, your guess is as good as ours. One thing is for certain though, and that is the flatbed hauling market is red hot. Enjoy the benefits while they last. We will be sure to report to you any changes as they happen.
Of course, if you are in the market for a flatbed trailer, TopMark Funding can help. We can leverage our numerous and ever expanding network of lenders to get you the best funding for your particular credit scenario. Read on below for more information!
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