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Load to truck ratios have significant impact to higher carrier costs and often play a role in limited capacity in major markets.
Load to Truck Ratios Spiking During Produce & Seasonality Shift
Beginning in June, the truckload national average for load to truck ratio for dry van is 5:1, while flatbed is as high as 38:1 in some major markets. Produce season is currently in full swing within several truckload markets. The southern part of the country is the most impacted region, experiencing load to truck ratios as high as 12:1
In addition, this week’s Dept. of Transportation Inspection Blitz was in effect from June 6th through June 8th. During this period, approximately 17 level-1 inspections were conducted every minute with the primary focus on cargo securement. Several carriers removed themselves from the market to avoid risking citations, which impacted capacity throughout the country.
Regional Truckload Market Updates
Texas major outbound markets, including Laredo (11:1), Houston (6:1) and Dallas (4:1) are showing tightened capacity for similar reasons, mainly due to produce and influx in freight. Experts anticipate that this trend should remain consistent through July and into August.
Midwest major markets, including Illinois and Indiana are experiencing load to truck ratios at 10:1, while west coast markets including California (7:1) and Arizona (10:1) are experiencing similar trends. Generally speaking – carriers can choose their freight mix, often chasing higher paying loads. These trends will continue through the end of August.
As stated previously, southeast markets, including south Florida, Georgia and the Carolinas are experiencing the highest capacity challenges strictly due to produce season. In addition, Memphis has load to truck ratio at 10:1 for the trailing 30 days. Arkansas continues to be a highly undesirable inbound market for carriers.
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Dave Stevens
Transportation Executive with experience in developing processes and controls for early stage start up companies. Specialties include: Sales, Marketing, Transportation, Trucking, Brokerage, Project Transport and Rail Operations.,Organizational Design, Process Development, Accounts Receivable Management, Leadership, and Business Start-ups.
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