All News & Insights

August 2024 Market Update

Transportation Trends

General Outlook

Labor market continues to add jobs.
- Jobless claims dropped 17k indicating some stabilization in the market.
Inventory levels for customers remained jumped slightly over what we saw from June to July.
- Overall import volume increased, as we get closer to Q4.
The Federal Reserve: Inflation still tracking to the 2% target, goal is to potentially cut interest rates in September if we keep on the same track.

LTL

Saia looks to reopen 6 former Yellow terminals.
- Saia on pace to open 18 to 21 new facilities across the country this year.
Roadrunner expands Canadian cross-border LTL service.
In August the National Motor Freight Traffic Association (NMFTA) will be rolling out density-based classification for 3PLs.
- Shippers will soon have to know the weight and dimensions of all handling units.
  - Proposed change will be issued in January of 2025 potentially to begin in May of 2025.
- Key Information for LTL shippers when requesting pricing.
  - Dimensions, Class, NMFC numbers, & weights are critical to getting the correct price on the front end of your shipment.

Truckload

Van spot rates were down 0.2% vs. this same time last year but up slightly 0.1% vs. last month. Capacity improved from last year same time by 14.9% and tightened by 11.5% vs. last Month. August Van contracted pricing is up $.38 per mile over spot market.
Reefer spot rates increased slightly by 0.4% vs. this same time last year but remained flat 0.0% vs. last month. Capacity increased from last year this same time by 19.8% but decreased by 7.3% vs. last month. August Reefer contracted pricing is tracking up $.35 per mile over spot market.
Flatbed spot rates are down 2.6% vs. this same time last year, and down 1.4% vs. last month. Capacity increased by 25.4% vs. this same time last year but decreased by 18.9% over last month. August Flatbed contracted pricing is tracking up $0.67 per mile over spot market.

A chart with three trucks—yellow van, purple flatbed, blue reefer—shows rising average freight rates from April to July, with rates shown for each truck type: Van ($1.99–$2.08), Flatbed ($2.23–$2.73), Reefer ($2.23–$2.47).

Outbound Tender Volume – All Modes

Demand still showing up vs last year. It’s important to keep a close eye on the outbound volume as we head into the start of Q3, Holiday season is right around the corner.

Line chart of the Outbound Tender Volume Index (USA) for 2018-2023, showing fluctuations by year, with each year as a separate colored line and values rising and falling across months.

Outbound Tender Reject – All Modes

Overall Rejects still up over 2023 during this same time, but currently down in August 2.2% vs. July.

Line graph showing the Outbound Tender Reject Index trends across the US from January to December. Multiple colored lines represent different years, with values fluctuating and key data points marked for 2020, 2021, 2022, and 2023.

Outbound Tender Reject – by Mode

Orange Line – Flatbed – Rejections have maintained steady through July into the 3^rd week of August. Currently tracking well below the 21’/22’ rejection rate.
Green line – Reefer – Rejections continue to climb slightly, which is to be expected during the summer months. Overall, the market remains stable with available capacity vs. previous years.
Blue – Van – Van Rejections took a slight jump in June/July but have started to flatten out as we head into the 3^rd week of August.

Line graph showing the Van Outbound Tender Reject Index for the US, with three lines from 2020 to 2024. Peaks occur in 2021, declining afterward. Current values: 6.44 (orange), 8.82 (green), and 4.27 (blue).

Carrier Authorities

This graph indicates we have less transportation companies coming into the market based on the current demand.
- Carrier Authorities continue to drop into the summer months, which could have a negative impact if the overall outbound volume continues to climb into Q4 or Q1 of 2025.

Line graph showing positive net changes in U.S. trucking authorities from late 2020 to mid-2022, then negative changes from late 2022 to early 2024, with a small rise in early 2024.

Table comparing FTL sub modes: Dry Van (4:1 now, 4:1 last year), Reefer (7:1 now, 5:1 last year), Flatbed (12:1 now, 9:1 last year). Demand exceeds capacity in all cases.

Van Load-to-Truck Ratio

Reefer Load-to-Truck Ratio

Flatbed Load-to-Truck Ratio

International

US container import volume jumped up 11.2% in July over June and continue to climb in August. The spike in July is a 16.8% growth over July of 2023.
Spot rates on the ocean side continue to remain high outbound of China.
- Weather and container capacity have been the biggest impact to the pricing.

Line graph comparing monthly U.S. container import volumes from 2019 to 2024, with 2021 and 2022 peaking, and 2019-2020 and 2023-2024 showing lower, more stable volumes. Y-axis in millions, X-axis shows months.

Line graph showing four differently colored lines representing inbound ocean TEUs volume index trends in the US from January to December, with noticeable fluctuations and peaks among the data lines throughout the year.

Canadian News

Volume dropped 8% over last month, but still remains up 12% Year-over-Year
Spot rates dropped slightly over last month by 1%.
Trucking index conditions (TCI) dropped from 2.24 in May to 0.95 in June.
- Higher financial cost and lower fuel offset the improving freight conditions.

Fuel Forecast – DOE

Average diesel fuel retail prices for 2023 averaged at $4.214/gallon through Q4 2023 and Q1 2024 fuel finished at an averaged $3.973/gallon. Fuel for Q2 finished at $3.849/gallon, Q3 is currently averaging $3.769/gallon, and Q4 is forecasted to come in around $3.790/gallon.

Energy Information Administration Diesel Fuel Prices January 1, 2019 – July 31, 2024

Line graph showing U.S. diesel prices from 2020 to 2024, peaking around mid-2022, then declining with a slight rise in the 2024 forecast.

Price Index Performance: 2016-2023, By Quarter, Through July Q3 2024

Line graph showing trends from 2005 to 2023 for parcels, PPI: final demand-finished goods, and CPI. Parcels (blue) rise steeply; PPI (black) and CPI (gray) climb steadily, while another line (orange) fluctuates.

State of the U.S. Transportation Market

What Does This Data Mean?

The Producer Price Index (PPI) is a family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure price change from the perspective of the seller. In other words, the PPI measures the trend of the cost of everything Manufactured in the United States

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