August represents a turning point in the year’s ebb and flow of freight. The summer slowly starts to shift toward cooler weather, students head back to school, and harvest begins on new crops in multiple regions.
Here at Anderson Trucking Service (ATS), we enjoy the fresh opportunities each August brings to the transportation industry. Over our decades in this business, we’ve helped shippers and carriers alike make the most of their budgets during this unique moment in seasonality.
As long as you take into account the factors outlined below, meeting your goals this August shouldn’t be difficult. We’ll answer all of your late-summer trucking questions including:
- What impacts dry van capacity in August?
- What impacts reefer capacity in August?
- What impacts open-deck capacity in August?
- What will spot quotes look like this month?
- How should you prepare for Labor Day?
- What can you do to make the most of August in this industry?
So, take one last gulp of summer air and let’s dive into everything you should know about the trucking industry in August.
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What Impacts Dry Van Capacity in August?
In August, there’s not much the standard 53-foot dry van trailer doesn’t move. Thanks to this trailer type’s versatility and the abundance of freight moving in the final month of summer, you can count on plenty of dry van movement.
As the first day of school quickly approaches, household goods season comes to a close nationwide. As families settle into new homes in new school districts, the dry vans they used to relocate throughout June and July are available for service once more — though not for long!
August’s relatively stable weather and long days serve as the perfect time for shippers across our nation, especially in northern states, to get things moving.
The holiday season and beginning of Q4 are on the horizon, and positioning freight for that busting time takes planning — planning that starts in August.
As such, expect to feel a pinch when sourcing dry van capacity in August.
Another notable nuance to the freight market in August: August sees dry van truckers nationwide run more specific, fixed lanes than they do in other months.
This behavior change is tied to good old supply and demand. As demand surges and their trailer space becomes more desirable, truckers like to make the most of the time they have.
Truck drivers like to plan their loads out days in advance, and settling into specific lanes — lanes that are ripe with opportunity in August — allows them to do just that.
The final change in dry van capacity during August is heightened demand in the Midwest.
August marks the beginning of harvest season in these areas, drawing the attention of dry van truckers and lowering prices in states like North and South Dakota, Iowa, Nebraska, and Minnesota.
For shippers, lead time is more important than ever when moving dry van freight in August. As dry vans are booked well into the future, the more notice you can give your transportation provider, the better.
A lead time of 24 to 72 hours should be enough time for your transportation partner to schedule your freight onto the busy calendars of area carriers.
What Impacts Reefer Capacity in August?
Reefer drivers enjoy a steady stream of business year-round thanks to goods like pharmaceuticals and chemical materials — demand for which is not affected by seasonality.
However, produce (and the states actively harvesting) does shift a bit in August. The July boom of reefer demand in the southern U.S. wanes slightly as new crops reach peak season.
Here are some examples of the fresh produce soaking up reefer capacity in southern states throughout August:
| Georgia | Tennessee | Florida | Texas |
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The heightened demand (and heightened earning potential) for reefer drivers in these areas during the summer months is simply too good to pass up, so as a result, you should expect to pay a bit more for any reefer freight you need to move away from these harvest hotbeds in August.
But there’s a bright side: Finding a reefer to carry freight into these areas will be a bit easier than other months and may cost a bit less.
What Impacts Open-Deck Capacity in August?
August’s beautiful weather allows open-deck freight to be transported freely before the temperatures drop for the remainder of the year.
That means open-deck capacity may be tight this month, as many of the U.S.'s 19,495 incorporated cities look to improve their infrastructure. As a result, construction equipment and materials like steel, concrete, and lumber will need open-deck trailer space in August.
In the northern U.S., August is another prime month for over-dimensional (OD) freight like tractors and other farm equipment. Planting has finished and harvest season is coming (if not already here), making August the month to get everything ready for its arrival.
For shippers, allowing flexibility in your open-deck equipment types this August will help you save on freight costs. Since the current trucking market is so tight, the more you can do to expand your pool of trucking options will help you maximize your budget.
Use a step-deck for your traditional flatbed freight. Consider a hot shot instead of a step-deck. Try a lowboy instead of a flatbed. There are plenty of options out there, and staying flexible with your trailer types will help you save some money this August.
What Else Should You Be Thinking About In August?
Aside from the factors impacting dry van, reefer, and open deck capacities this August, there are two additional things you’ll want to make note of when planning your supply chain logistics this month.
- The price of spot quotes
- Labor Day in September
1. Spot Quotes in August
Spot quotes are on-the-spot transportation rates calculated based on current transportation market pricing conditions.
These quotes are designed to ensure the price shippers pay accurately represents the going rate for transportation.
With so much freight moving in August, you should expect to pay a bit more for your spot quotes than you have in other months.
If you have consistent freight needs, consider locking into a contracted rate on your relevant lanes. Doing so will help you (and your transportation provider) plan and budget for any upcoming freight costs.
Like it or not, the tight freight market may impact your bottom line this month; make sure to plan accordingly.
2. Labor Day in September
The first Monday in September marks Labor Day, a national holiday dedicated to celebrating this nation's working class.
Whenever a federal holiday falls on a weekday, the freight market predictably lulls. Drivers are at home spending time with their family and friends, and travel restrictions make it more difficult to move OD freight.
That means finding a truck to meet your delivery and/or pick-up times during the long Labor Day weekend will be more difficult.
To combat the price increases that accompany shipping overLabor Day, make sure to plan around it. Schedule shipments for the week prior (the final week of August) or the week after to avoid the national holiday capacity crunch.
Related Podcast: What Happens to The Trucking Industry Leading Up to and During National Holidays?
Preparing For a Successful August — And Beyond
Your first step toward a solid supply chain this August is to work with an experienced transportation provider. Whether you’re working with a new provider or one with which you have a longstanding relationship, it’s important to ask questions about any seasonal factors that could affect your freight, like:
- “How will my freight feel the impact of the produce harvest in the south?”
- “Should I be thinking about sourcing for a different equipment type?”
- “How are current market conditions impacting my spot quotes?”
- “How can I get more from my shipping dollars?”
As we touched on earlier, another key component to supply chain readiness in August is ample lead time. It’s critical to allow your transportation provider enough lead time to secure a reliable and cost-effective carrier for your load.
Finally, make sure to arm yourselves with the tools and information you need to succeed. Keep an eye on transportation industry news and freight market updates to ensure you stay ahead of any relevant developments.
What Will the Rest of 2024 Look Like?
As the year transitions from summer to fall, freight demand is equally dynamic.
August is chock-full of freight movement, and the transportation industry necessarily responds with tighter capacity and generally higher rates. Spot quotes tend to rise, and the upcoming Labor Day holiday further complicates logistics planning.
Dry van capacity is limited in August due to the end of the household goods season and the start of school, while reefer capacity is influenced by produce harvests in the southern states. Open-deck freight also sees increased activity, driven by construction projects and agricultural needs.
Understanding these seasonal nuances is a must for shippers and carriers to optimize their operations and budgets. By planning ahead, staying informed, remaining flexible with equipment types, and collaborating closely with experienced transportation providers, you can navigate the complexities of the August freight market successfully.
As you look to optimize your supply chain in August and beyond, check out our 2024 Transportation Industry Mid-Year Market Update.
In it, our chief financial officer provides his expert insights into the freight market for the rest of the year into 2025.
You’ll gain a better understanding of the economic principles currently influencing the transportation industry as well as right-sized expectations for the final months of 2024, allowing you to make informed decisions about your operations and budget.
