October 2024 Market Update Spot

Logistics Market Update: October 2024

October 23, 2024

At Spot, we understand the vital role that up-to-date information plays in navigating the dynamic logistics market. Each month, we bring you a comprehensive logistics market update. We dive into the latest trends, challenges, and innovations shaping the logistics sector. Join us as we empower you with the knowledge needed to make informed decisions in this fast-paced industry.

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Demand Levels & Outlook

Hurricane Milton’s Impact

Hurricane Milton disrupted supply chains, particularly in Florida, with Port Tampa Bay closures causing congestion at alternative ports. Road and rail closures, coupled with damage to Florida’s citrus industry, have created significant supply chain disruptions and delays.

  • 25% increase in dwell times at alternate ports.
  • Citrus crop losses estimated at 30%, with prices expected to rise 15-20%.
  • Estimated shipment delays of 3-5 days due to road closures.

Port Strike Aftermath

The recent East and Gulf Coast port strike led to backlogs, which are expected to take 3-4 weeks to clear. Shippers rerouted freight to other ports, increasing congestion.

  • 15% increase in container dwell times.
  • Linehaul rates for East Coast routes rose by 8% during the strike.

Market Momentum

The Transportation Utilization Index fell slightly to 57.6, indicating slower expansion, while freight volumes remain weak, down 5.2% year-over-year.

Supply, Capacity & Carrier Costs

Capacity Crunch

Capacity remains tight, particularly for flatbed and reefer carriers affected by Hurricane Milton. The Transportation Capacity Index held steady at 50, signaling no change in capacity.

  • Flatbed load-to-truck ratio increased by 54% year-over-year.
  • National reefer load postings fell 14%.

Warehouse Costs & Fuel

Warehouse prices surged as retailers prepare for the holiday season, while freight expenditures dropped 6.6% year-over-year, driven by a 4% drop in diesel prices.

  • Freight expenditures grew 1% from August despite year-over-year declines.
  • Warehouse prices rose to 66.9, the highest in over a year.

Contract & Spot Market Rate Trends

Spot Market Freight Rates Remain Steady

Despite disruptions, spot market freight rates have held relatively stable. The Outbound Tender Rejection Index increased slightly to 5.62%, signaling tighter conditions in hurricane-impacted areas. FEMA’s disaster relief efforts are expected to increase competition for loads.

  • National dry van spot rates remained at $1.65 per mile, slightly up from last year.
  • Spot rates in Southeastern lanes, especially Florida, are on the rise.

Contract Rates Stabilizing

Contract rates are down 2% year-over-year but are stabilizing. As capacity tightens for the holiday season, certain lanes, particularly those in hurricane-hit regions, are seeing rising rates.

  • Flatbed spot rates averaged $2.00 per mile, up by $0.11 year-over-year.
  • Outbound flatbed volumes from Lakeland, FL, dropped 40%, spiking Spot rates on certain lanes.