Canadian national averages for truckload spot rates also lower for dry vans and reefers.
TORONTO – TransCore Link Logistics’ Canadian spot market saw an expected reversal in truckload balance compared to June as a nine percent decline in loads was met with an influx of 15 percent in truck capacity. According to past freight index trends, July tends to be slower due to national holiday closures.
The month-over-month drop in loads coincided with the nearing end of some seasonal produce shipments. Two major North American holidays at the start of the month also contributed to the lower freight volumes. Shipments tendered in June specifically to meet the holiday demand accelerated volumes in late June which caused a monthly decline at the start of July. Following the holidays, capacity returned to the spot market as more truck drivers returned to work.
Intra-Canadian Freight Volumes Increased
As intra-Canadian freight volumes increased, the weakness in July load volumes was mainly due to a reduction in cross-border freight.
Truckload Spot Rates: The average national intra-Canadian dry van rates decreased one percent from $2.68 to $2.66 per mile; flatbed rates were up three percent, and reefer rates slid 17 percent.
Cross-Border Reefer Loads Reach a High since February
Canadian-based reefer loads entering the States were up a significant 52 percent compared to June. This was the highest volume of reefer loads bound for the south since February. Van and flatbed loads originating from Canada also performed strongly with gains of 17 and 16 percent, respectively. Despite the strength from the Canadian market, loads for all three vehicle types originating from the USA destined for Canada were down.
Truckload Spot Rates: The average dry van rates were modestly lower with the cross-border national average decreasing one percent from $3.06 to $3.04 per mile; flatbed rates were down five percent and reefer rates gained a single percent.
Some American States Saw Noteworthy Gains
Particularly, markets in the state of Texas saw truck availability surge. Van rates declined four percent on average from large Texas markets to Ontario. American markets that saw noteworthy gains in cross-border load volumes include Joliet (IL), Milwaukee (WI), Boston (MA), and Albany (NY).
July’s equipment numbers increased 15 percent following a drop in June. July’s total was the second highest value ever recorded on Loadlink’s spot market. Daily average number of truck postings increased four percent.
The truck-to-load ratio in July expanded to a decade high of 4.16, a 26 percent increase from June’s ratio at 3.31.
Truck-to-load ratios for cross-border freight originating from American markets were up 106 percent on average, in part due to 83 percent of all American markets having reduced outbound freight to Canada.
About TransCore Indexes
Truckload spot rates in specific areas can be accessed from TransCore’s Rate Index truckload rating tool, and real-time and historical data on total truck and load volumes, as well as ratios in specific areas can be accessed from TransCore’s Posting Index.
TransCore’s Canadian Freight Index accurately measures trends in the truckload freight spot market. The components of the Freight Index are comprised from roughly 6,500 of Canada’s trucking companies and freight brokers; this data includes all domestic, cross-border and interstate data submitted by Loadlink customers.
About TransCore Link Logistics
Looking for a better way to match available freight loads with trucks, TransCore Link Logistics in 1990 developed Loadlink, a load board connecting brokers, carriers, owner operators and private fleets in Canada to a real-time database of 18 million loads, shipments and trucks – the largest in the industry. The monthly Canadian Freight Index now defines the freight movement spot market. The company also provides its customers with dispatch solutions, ACE/ACI eManifest, Posting Index, Rate Index, credit solutions, factoring, an online transportation job board, mileage software and more.