Spot Rates Remained Quite Elevated In Late February

Data from Truckstop.com and FTR Transportation Intelligence for the week ended February 27 show broker-posted spot rates for dry van and refrigerated equipment stabilizing at highly elevated levels relative to comparable weeks in recent years.

Meanwhile, flatbed spot rates continue to rise and are very close to their highest level since October 2022. Factors probably include the recent improvement in industrial production and the surge in data center construction.

Dry van spot rates rose in the latest week, while refrigerated rates posted their smallest decrease since the 45-cent spike in late January due to weather.

The latest week clearly featured some strength due to a winter storm in the Northeast, but weather will become a less significant factor in the coming weeks. Even so, seasonal growth, along with ongoing capacity pressures, will likely keep spot rates elevated.

It seems that the major weather disruption may have caused a rapid reset in spot rates, which would have otherwise changed more gradually this spring. If so, the market impact of January’s winter storm could be like that of Hurricane Harvey in September 2017.

Total load activity reached its highest level since July 2022. Since load postings exceeded truck postings, the Market Demand Index increased to 151.1, marking the highest point since March 2022.