September Trends


In September 2024, the dry van market in the U.S. saw mixed trends as the economy adjusted to various seasonal and macroeconomic factors.


Spot Rate Decline: Dry van spot rates decreased by 1.9% compared to August, averaging $1.60 per mile, primarily driven by softer demand following the summer peak. However, spot rates were still 2% higher year-over-year. The contract rates remained stable, though they were slightly lower than in 2023, reflecting an overall softening in demand as the year progressed ​(Coyote Logistics)​(Ryan Transportation).


Load-to-Truck Ratio (LTR): The load-to-truck ratio, a key measure of demand versus available capacity, dropped by 12.9% month-over-month. This decline indicates a loosening in the market as supply outpaced demand. The LTR remains slightly lower compared to 2023, suggesting that capacity is readily available, giving shippers more options but also putting pressure on carriers​ (Ryan Transportation).


Import Surge and Port Activity: U.S. container imports surged in July 2024, rising over 11% compared to the previous month. This spike in import volume, particularly into West Coast ports, led to increased demand for dry van services as goods were transloaded from containers into trucks for distribution. The congestion at Los Angeles ports, driven by labor disputes on the East Coast and the potential for disruptions, contributed to this volume increase​ (Ryan Transportation)​(BM2 Freight).


Retail and Seasonal Demand: The retail sector is transitioning from the back-to-school rush to holiday stockpiling, which is expected to elevate dry van demand towards the end of September. Although there is a brief lull at the start of the month, the overall market is gearing up for increased activity as retailers prepare for holiday sales​ (BM2 Freight).


Impact of Rail Strikes and Labor Issues: Labor disputes in Canada and ongoing contract negotiations at U.S. East Coast ports have further influenced the dry van market. With concerns about potential strikes, many shippers are rerouting freight through West Coast ports, increasing the demand for dry van capacity in those regions. This shift has caused temporary increases in rates and capacity shortages in key areas like Los Angeles​ (Coyote Logistics)​(Ryan Transportation).


Macroeconomic and Infrastructure Developments: Broader economic conditions, such as interest rates and construction activity, also affect the dry van market. The U.S. construction sector showed mixed performance, with regional variations contributing to fluctuating demand for transportation services. While nonresidential construction projects remained strong, the slowdown in residential building permits in some areas has moderated demand for transportation of building materials​ (BM2 Freight).



These trends reflect both the seasonal dynamics typical of the dry van market and the external pressures from labor issues and shifting import flows.


August Trends

In August 2024, the freight markets across different U.S. regions experienced varied trends influenced by economic conditions, seasonal demand, and industry-specific factors. Here's an overview of the activity in key U.S. markets:


1. Southeast Region:

  - Increased Activity: The Southeast, including states like Georgia, Florida, and the Carolinas, saw robust freight activity driven by the back-to-school season and strong retail demand. Ports like Savannah and Charleston experienced higher container volumes, contributing to an uptick in drayage and regional truckload demand.

  - Capacity Tightening: Capacity was slightly constrained, particularly in the reefer segment, due to high demand for temperature-controlled goods.


2. Northeast Region:

  - Moderate Growth: The Northeast, covering areas like New York, New Jersey, and Pennsylvania, witnessed moderate freight growth. The region benefited from sustained consumer demand and manufacturing outputs, although the overall growth was tempered by high operating costs and labor shortages.

  - Port Activity: The Port of New York and New Jersey remained active, with an increase in import volumes that slightly alleviated earlier congestion issues.


3. Midwest Region:

  - Agricultural Influence: The Midwest's freight activity was significantly influenced by the agricultural sector. The beginning of the harvest season in late August led to increased demand for flatbed and bulk carriers, particularly in states like Iowa, Illinois, and Ohio.

  - Stable Capacity: Trucking capacity in the region remained stable, with slight increases in rates due to higher fuel costs and regional demand spikes.


4. Southwest Region:

  - Cross-Border Trade: The Southwest, particularly Texas, experienced high freight volumes due to cross-border trade with Mexico. The automotive and manufacturing sectors were particularly strong, boosting demand for both truckload and LTL (less-than-truckload) services.

  - Heat-Related Challenges: Extreme temperatures in parts of the region, like Arizona and New Mexico, led to some operational challenges, including equipment wear and tear and driver health concerns.


5. West Coast Region:

  - Port Congestion Easing: The West Coast, especially California, saw some easing of port congestion in Los Angeles and Long Beach. However, ongoing labor negotiations created uncertainty in the market, with some shippers diverting cargo to other ports.

  - Retail and E-commerce: The e-commerce and retail sectors continued to drive freight demand, though at a slightly slower pace compared to previous months. The produce season in California also contributed to strong demand for reefer units.


6. South-Central Region:

  - Energy Sector Impact: The South-Central region, including Oklahoma and Louisiana, saw mixed freight activity. The energy sector, particularly oil and gas, continued to drive demand for specialized freight services, though the overall market was somewhat subdued due to lower-than-expected production levels.

  - Natural Disasters: The region was also impacted by a few weather-related disruptions, including hurricanes, which affected freight flow and capacity temporarily.


General Trends:

  - Fuel Prices: Fuel prices continued to be a significant factor influencing freight rates, with carriers passing on higher costs to shippers.

  - Driver Shortages: The ongoing driver shortage remained a concern, leading to tight capacity in certain markets and pushing up wages.

  - Technology Adoption: There was an increase in the adoption of technology, particularly in route optimization and real-time tracking, helping carriers improve efficiency despite challenges.


These dynamics illustrate how different factors, including regional economic conditions, seasonal trends, and industry-specific demands, shaped freight activity in August 2024 across various U.S. markets.


July Trends

As of July 2024, the freight market in the Midwest and other regions has displayed several notable trends:


Midwest Region:

  • The Midwest, particularly areas around Columbus, has seen a resurgence in rates. For example, Columbus rates have recently increased by $0.08 per mile. Chicago rates are stable but are expected to rise seasonally​ (DAT)​.

National Perspective:

  • Overall, the national average for dry van rates shows a decline from the previous weeks. This trend is partly due to a post-holiday slide in rates, although seasonal retail activities might influence future increases​ (DAT)​.

Southern and Southeastern Trends:

  • The Southeast is experiencing tight capacity due to high demand driven by seasonal retail activities and produce seasons, particularly in states like Florida and Texas. These factors are pushing reefer equipment rates higher​ (BM2 Freight)​.
  • In the lead-up to the July 4th holiday, regions like Georgia and the Carolinas also saw increased rates due to seasonal produce movements​ (CH Robinson)​.

Intermodal and Cross-Border Insights:

  • The North American intermodal market has remained stable with generally available capacity and steady volumes, particularly in major metros across the U.S., Canada, and Mexico. Transactional intermodal rates saw a decrease through May and June​ (Coyote Logistics)​.
  • Cross-border trends with Mexico noted a slight increase in northbound rates by 4.5% month-over-month due to seasonal demand spikes around the July 4th holiday​ (Coyote Logistics)​.


These insights reflect a dynamic freight market influenced by seasonal demands, regional activities, and broader economic conditions. For businesses involved in logistics and shipping, staying updated with these trends is crucial for planning and optimization.

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