In a surprising turn of events, flatbed trucking rates have surged over the past month, driven by a combination of tariff-induced uncertainty and seasonal demand spikes. This marks the highest flatbed pricing to kick off a year since 2017, according to data from DAT, as shippers in steel and lumber industries scramble to secure inventory amid supply chain concerns.
Tariff Turmoil Fuels Freight Movement
Flatbed trucking prices have been rising steadily for six weeks, with the latest figures showing a 4-cent increase to $2.13 per mile compared to the previous week. This jump is part of a broader trend influenced by the uncertainty surrounding tariffs and repositioning of freight. As industries prepare for possible cost increases due to tariffs, steel, lumber, and oversized cargo shipments have been pulled forward to mitigate the effects of the looming trade measures.
Dean Croke, Principal Analyst at DAT, highlighted that flatbed demand traditionally rises in March and April as construction, agriculture, and machinery imports pick up. However, the anticipation of tariff hikes is exacerbating this seasonal demand. “We’re seeing volumes build up now, with some of that activity driven by uncertainty around tariffs,” Croke said in an email to Trucking Dive.
Uncertainty Around Tariffs and Flatbed Freight
The tariff situation remains unpredictable. With President Donald Trump’s 25% tariffs on steel and aluminum imports already in effect and a review of the U.S. wood supply chain underway, flatbed freight is navigating uncharted waters. Croke notes that the effects of tariffs on flatbed freight remain a wildcard due to the shifting nature of trade relations and the types of freight involved.
As the threat of higher costs lingers, companies are taking precautionary measures, advancing their orders for materials such as machinery, lumber, and metals to avoid higher prices. While not a record-breaking demand, Croke points out that it is still notably higher than what flatbed carriers have seen during the ongoing freight recession.
Steel and Lumber Orders Push Rates Higher
One significant driver behind the surge in flatbed spot rates is the influx of steel and lumber orders, as buyers rush to secure supplies before tariffs push prices even higher. Jerad Dennis, Director of Pricing and Business Intelligence at TA Services, explained, “Expected cost increases from tariffs have led to a rise in steel and lumber orders as companies stockpile ahead.”
Chris Bahr, EVP and CIO at TA Services, further emphasized the impact of this surge: “We’ve seen a backlog in steel orders as buyers rushed to secure supply before tariffs take effect. This backlog is expected to sustain higher flatbed volumes and rates in the short to mid-term.”
Carrier Exits Add to the Strain
In addition to tariff-driven pressures, the flatbed market is also grappling with a wave of carrier exits. Croke notes that since flatbed trucking is a specialized sector where approximately 30% of loads move on the spot market, the loss of carriers has a disproportionate impact. This reduction in available capacity is exacerbating the rise in flatbed rates, as carriers are less able to meet the growing demand.
The Road Ahead
Looking forward, the combination of tariff uncertainty, seasonal freight movements, and carrier exits is expected to keep flatbed rates elevated for the foreseeable future. While the exact trajectory of the flatbed market remains uncertain, it’s clear that supply chain pressures and tariff-related concerns will continue to shape the landscape for both shippers and carriers in the coming months.
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