Shipping and Logistics
Flatbed Truck Demand Falling Along with Rates
Written by Sandy Williams
January 19, 2021
Demand for flatbed trucks was fueled by residential construction in 2020, with nonresidential construction slipping from pre-pandemic rates. The Associated General Contractors trade group expects 2021 to be a difficult year for the construction industry with only three nonresidential market segments, water and sewer, warehouse and healthcare facilities, expanding.
The latest report from the U.S. Census Bureau showed spending on private nonresidential construction in November dropping 9.5 percent year-over-year. The decline in commercial projects, in tandem with projected slowing in the residential housing market, is likely to translate into lower flatbed freight volumes for 2021, said Dean Croke, principal analyst for DAT iQ. Although a negative for the trucking industry, lower construction demand will improve truck availability and rates for steel shipments.
The national load-to-truck ratio for flatbeds jumped to 52.74 in the first week of January, slipping to 50.28 in the second week and to 44.40 last week. The load-to-truck ratio represents the number of loads posted for every truck posted on the DAT Load Boards. A change in the ratio often signals impending changes in rates.
Flatbed spot rates have been declining since the end of 2021 and are forecast by DAT to flatten to around $2.15 per mile by mid-February. National flatbed spot rates averaged $2.48 per mile as of last week.
Sandy Williams
Read more from Sandy WilliamsLatest in Shipping and Logistics
CRU: Turkish scrap prices continue to rise as supply tightens
Turkish scrap import prices increased for a third consecutive week.
Miller: Pig Iron Market Update
The importation of basic pig iron has allowed EAF steelmakers to implement thin-slab casting technology to make drawing-quality flat-rolled sheet over the last 30 years.
October Import Licenses Sideways, Flat Rolled Permits Decline
US steel imports continue to arrive at a steady pace, as total import licenses in October were about even with September’s import levels.
Longshoremen Could Strike on East, Gulf Coasts Next October
The leader of the International Longshoremen’s Association (ILA) warned that members on the East and Gulf Coasts could go on strike in October of next year when the union’s contract expires.
St. Lawrence Seaway Union Members Ratify New Labor Deal
Unifor members at the St. Lawrence Seaway Management Corp. (SLSMC) have voted to ratify a new labor agreement.