Overview:
• For week 30 in the spot market, 3 of the 4 key market indicators decreased. The overall Market Demand Index (MDI) fell 5.7 points to 128.7 as load availability decreased 2.8% and truck availability rose 1.5%. Compared to last year, the MDI is up 40.8 points, or 46.4%. Last week, market rates fell 1.8% to $3.32. Compared to last year, rates are up 44.0%. National fuel prices edged up $0.16 cents to $5.29 from $5.13 per gallon in the previous week.
• Data from Truckstop.com and FTR Transportation Intelligence for the week ended July 31 reinforced the notion that spot rates have fully reset but might have peaked in the near term.
• Broker-posted spot rates in the Truckstop.com system were soft as seasonally expected despite the recent surge in fuel costs. That performance contrasts with the pattern in March, when surging diesel prices led to much larger rate increases than would be expected for that time of year.
• Spot rates remain at historically high levels for comparable periods of the year and are still up 40% to 50% year over year. However, without major shifts in either capacity or demand, spot rates likely will experience only seasonal ups and downs in the near term.
• In the latest week, spot rates for dry van and flatbed equipment declined week over week, while refrigerated rates recorded only a slight gain. In all cases, spot rate changes were no stronger than seasonal expectations.
