There has been some optimism looming around the flatbed spot rates. Initially, the flatbed spot rates were lower compared to van and reefer levels. The pandemic had adverse effects on different businesses in different ways. Despite the challenges posed by the pandemic, there is hope that the rates will stabilize in 2021. Once the impact of the pandemic cools down, there could be a turnaround for flatbed users.

Route to recovery

Though the flatbed spot rates did not fall as drastically as those of vans and reefers, their route to recovery was too long. The relationship between the production and construction sectors and the flatbed spot rates is quite strong. Flatbed entirely depends on the two industries for productivity. As an effect of the pandemic, the production sector has not yet recovered fully. The construction sector, on the other hand, picked up relatively well during the tough times. Since most people resolved to work from home, the residential construction hit the highest levels ever, since 2006.

Once the pandemic is contained, and its effects are minimized, the economy is expected to recover rapidly. It means there should be more business investments for people to explore. The only downside is that most people will tend to wait until they know what plans the new administration holds for the corporate tax structure. Most companies are therefore expected to hold back till there are economic stability and certainty.

The consumer spending pattern changes were at the helm of driving the freight demand in 2020. The pattern volatility meant that van and refer rates would blossom more than the flatbed rates. Vans and refers are moving the most of consumer products. Despite capacity being tight in all three modes, flatbed rates are steadily increasing over time. As the pandemic is more and more brought under control, there are lots of expectations in 2021.