BLOOMINGTON, Ind. — Although spot rates increased for two of the three principal equipment types, total broker-posted spot rates in the Truckstop system were essentially unchanged during the week ended June 14 (week 24) due to changes in the freight mix.
Meanwhile, spot truckload rates bounced higher in May in the DAT One freight marketplace as shippers sought capacity to move greater volumes of van and refrigerated freight, said DAT Freight & Analytics, operators of the DAT One freight marketplace and DAT iQ data analytics service.
Truckstop’s report
Total rates had barely moved in the previous two weeks. Refrigerated spot rates rose after two down weeks, and flatbed rates were up for a fifth straight week — a streak that had not occurred in more than two years. Dry van rates eased marginally from the prior week.
Total loads
Total load activity fell 8.4% after rising more than 14% during the first full week following the Memorial Day holiday. Total volume was more than 5% below the same 2023 week and more than 35% below the five-year average for the week. Flatbed was a drag on volume as both dry van and refrigerated load postings were higher y/y in the latest week. Total truck postings rose 5%, and the Market Demand Index — the ratio of load postings to truck postings in the system — fell.
Total rates
The total broker-posted rate was unchanged from the previous week. Rates were 2.6% below the same 2023 week and about 7% below the five-year average for the week. Total rates were flat despite higher flatbed and refrigerated rates and barely any change in dry van rates largely because of a substantial drop in volume for flatbed, which has the highest rates. If total rates were to continue holding steady, by week 27 they would be higher year-over-year for the first time since June 2022.
Dry van rates
Dry van spot rates declined by less than a tenth of a cent after falling 2.5 cents during the prior week. Rates were 0.2% above the same 2023 week but 10% below the five-year average. Dry van loads declined 1.4%. Volume was 1.5% above the same 2023 week but more than 30% below the five-year average for the week.
Refrigerated rates
Refrigerated spot rates rose nearly 4 cents after falling slightly more than 4 cents in the previous week. Rates were nearly 1% above the same 2023 week but more than 6% below the five-year average for the week. Refrigerated loads increased 2.3%. Volume was nearly 8% above the same 2023 week — the strongest year-over-year comparison since January — but about 29% below the five-year average for the week.
Flatbed rates
Flatbed spot rates rose just over 1 cent after rising by a slightly larger amount during the prior week. The last time that flatbed spot rates increased in more than four consecutive weeks was April 2022. Rates were 2.4% below the same 2023 week — the least negative year-over-year comparison since August 2022 — and 6% below the five-year average for the week. Unless flatbed rates fall by about a cent or more in the current week, they will be higher year-over-year in week 25. Flatbed loads fell 14.2%. Volume was nearly 12% below the same week last year and 42% below the five-year average for the week.
DAT One’s report
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, hit all-time highs for van and refrigerated (reefer) loads:
- Van TVI — 289, up 4% from April
- Reefer TVI — 224, a 4% increase month-over-month
- Flatbed TVI — 301, down 2% from April
The van and reefer TVI numbers climbed 13% and 25% higher, respectively, compared to May 2023. The flatbed TVI fell month-over-month for the first time since December 2023.
“Stronger van and reefer volumes are consistent with May, when shippers move seasonal produce and retail goods and truckload capacity tightens due to the Roadcheck inspection event and Memorial Day holiday,” said Ken Adamo, DAT Chief of Analytics. “Carrier attrition created further pressure on capacity.”
Spot rates reflected higher demand
Spot prices responded last month, with national average van and reefer linehaul rates within 2% of where they were in May 2023:
- Spot van — $2.01 per mile, up 2 cents
- Spot reefer — $2.41 a mile, up 9 cents
- Spot flatbed — $2.52 a mile, unchanged
Linehaul rates, which subtract an amount equal to an average fuel surcharge, increased for all three equipment types. The average van linehaul rate was $1.58 a mile, up 5 cents compared to April; the reefer rate jumped 9 cents to $1.94; and the flatbed rate gained 4 cents to $2.01.
National average rates for contracted van and reefer freight declined compared to April:
- Contract van — $2.43 per mile, down 2 cents
- Contract reefer — $2.79 a mile, down 3 cents
- Contract flatbed — $3.16 a mile, up 1 cent
Load-to-truck ratios edged higher
National average van and reefer load-to-truck ratios rose in May:
- Van ratio — 4.4, up from 1.9 in April, meaning there were 4.4 loads for every van truck on the DAT One marketplace
- Reefer ratio — 6.3, up from 4.8
- Flatbed ratio — 18.0, down from 18.5
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for spot truckload freight.
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
