Will rates ripen before the end of produce?
Axle
Logistics
Key Trends
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Impacts of Roadcheck historically low
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Revocations stay up, but supply remains strong
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Rate forecast improving the Trucking Conditions Index
Monthly
News
Georgia Port Records Strongest Ever Month
On May 21st, The Georgia Ports Authority reported April as its busiest month ever for automobile shipments. The 44% increase in volume was a result of the closure of the Port of Baltimore, which can be credited to the collapse of the Francis Scott Key Bridge on March 26th. The second-busiest U.S. port for autos, Brunswick, moved more than 80,000 vehicles and heavy machinery units across its docks last month.
The increase in volume is consistent with recent data, as the Brunswick port had its second-busiest month of record for autos and heavy machinery in March, which had mostly passed prior to the bridge collapse.
Auto shipments to Georgia have been booming since last year, when U.S. auto sales saw their biggest increase in a decade. That led to the Port of Brunswick handling a record 775,000 automobiles and heavy machinery units in calendar year 2023. This surge is certainly being felt in the dry van space as well as automotive loadings continue to impact loadings projections.
Market
Trends
Supply Update
Net Revocations of Authority, the net change in carriers receiving new operating authority minus those with their authority revoked, grew to 6,830. A signal many carriers are still leaving the market. However, from July ‘20 through May ‘24 nearly 335,000 carriers obtained authority, while 243,000 lost authority, which indiciates the market still has 92,000 more carriers than pre-lockdown.
Demand Update
Revisions made primarily due to the Bulk/Dump segment moved the overall FTR Truck Loadings Forecast higher in the latest release. Total forecast moved up 0.3% to 1.8% y/y growth in 2024.
Dry Van specifically showed growth in both food and automotive loadings which showed positive forecast growth. Dry Van loading for ‘24 are now now showing a 2.1% y.y increase, a change of 0.4% up from the previous reading.
Market
Trends
Rate Update
Spot Rates showed strength throughout May as seasonal impacts took hold according to DAT’s Trendlines. That said, Van rate gains were the lowest since 2017 during the 3 day FMCSA Roadcheck event.
Contract rates continued to show decline, feeling the pressure of lower spot rates. All three major equipment types showed drops in the Contract Rate Per Mile average according to DAT.
Market
Forecast
The total broker-posted rate increased just under 3 cents for the smallest gain in a Roadcheck week in at least a decade, except for 2020 when rates were basically flat week over week. Rates were more than 5% below the same 2023 week and more than 6% below the five-year average for the week. At this point, the forecast does not indicate evidence of a change in pace. According to DAT for the week following Memorial Day, the national average dry van linehaul rate increased by just over a penny per mile to $1.66/mile as shippers pushed more volume into the market at month-end. Compared to last year, linehaul rates are $0.03/mile lower on an 8% higher volume of loads moved in Week 22.
Speak to your Axle Logistics Consultant to understand how the market is impacting your specific industry and business!
The Axle
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Our Team
We are excited to welcome our new group of interns for the summer! They bring fresh perspectives and energy, and we look forward to seeing their growth over the next couple of months.
#AxleGivesBack
Our May Community Partner Spotlight is Second Harvest Food Bank! We are proud to announce that our team was able to donate over 18,000 meals throughout the month.
Second Harvest’s programs are designed to serve those experiencing hunger across East Tennessee, from children to seniors, and everyone in between. Their programs strive to distribute food to every corner of the community, provide educational resources, and end the cycle of poverty.
Did you know...
In June, the shipping industry experiences one of its busiest periods due to the increased demand for goods related to summer activities, vacations, and outdoor events. This seasonal spike significantly boosts cargo volumes, particularly for products like recreational equipment, summer apparel, and travel essentials.
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If you have questions about current market conditions or would like more information, connect with our team today!