As a third-party logistics company handling freight all across the United States and Canada, Whitewater Freight is constantly monitoring the trends and factors that affect the transportation industry. One important factor that has been impacting the market recently is the state of residential housing construction.
Residential housing construction is a key indicator of the overall economy, and it has a direct impact on the transportation of building materials and products. However, recent data shows that the housing construction market is currently in a holding pattern.
According to the latest Flatbed Report from DAT, a leading provider of transportation and logistics data, the spot truckload rates for flatbed freight have been relatively flat for the past few months. This is due in part to a decrease in demand for flatbeds from the residential housing construction sector.
But what exactly does this mean for the transportation industry?
First, let’s take a closer look at the numbers. DAT research shows that in May 2018, flatbed demand was up 92% compared to the same month in 2017. However, in May 2019, demand had dropped to only 34% above the same period in the previous year. This significant decrease in demand is a clear indication that the residential housing construction market is not as strong as it was last year.
One possible explanation for this decline is the current state of the housing market. Despite a strong economy and low unemployment rates, residential construction is experiencing a slow-down due to factors such as higher material costs and a shortage of skilled labor. This has caused builders to delay or cancel projects, leading to a decrease in demand for building materials and related transportation services.
In addition, there are concerns about the possibility of a trade war with China, which could result in higher tariffs on imported materials used in residential construction. This uncertainty is causing many builders to hold off on starting new projects until there is more clarity on the situation, further contributing to the holding pattern seen in the flatbed market.
So, what does all of this mean for the transportation industry? It’s clear that the slow-down in the residential housing construction market has had an impact on the demand for flatbed trucks. As a result, flatbed carriers may need to adjust their operations and look for other opportunities to keep their trucks moving.
On the flip side, shippers who rely on flatbed carriers may see this as an opportunity to negotiate lower rates and take advantage of the slower market. However, it’s important to remember that this is a temporary situation and things can quickly change. With the busy summer construction season just around the corner, demand for flatbed trucks may pick up again.
At Whitewater Freight, we understand the fluctuating nature of the transportation industry and are constantly monitoring market trends to best serve our customers. Our experienced team is always on the lookout for new opportunities to keep our carriers moving and provide our customers with the best transportation solutions.
In conclusion, while the current state of the residential housing construction market may have caused a holding pattern in the flatbed sector, there are still plenty of opportunities for carriers and shippers to work together and find success. By staying informed and adaptable, Whitewater Freight is committed to providing efficient and reliable solutions for all your transportation needs.
