Back to December 2024 Industry Update
December 2024 Industry Update: Flatbed
Flatbed volumes rose for the second consecutive month in October pushing average rates higher.
Spot Rates
Key Points
- The national average flatbed spot rate, excluding fuel, declined by just under $0.04 MoM, or 1.9%, in November to just below $1.92.
- On an annual basis, the average flatbed linehaul spot rate was 4.4% lower YoY and was 1.6% below the LT average.
- Initially reported national average flatbed contract rates, exclusive of fuel, were up slightly MoM by 0.1% and were 0.3% higher YoY compared to November 2023.
Load-to-Truck Ratio
Key Points
- The flatbed LTR fell 22.2% MoM in November but was 43.8% higher YoY compared to November 2023.
- The flatbed LTR remained well below the 5-year average in November by 40.2%.
Market Conditions
Flatbed Summary
Flatbed freight saw a notable increase in demand following Hurricanes Helene and Milton, particularly in regions like North Carolina and the Gulf Coast. This highlights the critical role flatbed trucks play in transporting emergency and recovery materials. Despite hurricane related boosts, residential construction activity continues to experience seasonal softness. This trend may limit broader growth in flatbed demand, but government funded infrastructure projects help to stabilize demand.
Agricultural tractor sales decreased by 19.2% in September 2024 compared to the previous year, according to the most recent data from the Association of Equipment Manufacturers (AEM). Combine sales also declined during the month, with a drop of 40.7% compared to 2023. Larger broad acre 4WD farm tractors were down 15%, while high-volume (<40HP) tractors fell 21%. Similar trends were observed in the Canadian market, with tractor sales down 24.9% and combines down 51.9%. Curt Blades, AEM Senior VP, noted this reflects a broader slowdown in the agricultural economy.