Positive Trends in Truckload Spot Market for December
In recent analyses, demand for trucks on the spot market showed a promising increase in December, indicating strong retail and grocery sales in the lead-up to the holiday season. DAT Freight & Analytics reported this trend through its DAT One freight marketplace and data analytics service.
Truckload Volume Index Insights
The recent performance of the van and refrigerated Truckload Volume Index (TVI) exhibited modest gains compared to November:
- Van TVI rose to 260, marking a 2.4% increase.
- Refrigerated TVI reached 220, up by 3%.
- Flatbed TVI decreased to 237, down by 5%.
Year-over-year comparisons revealed that both van and reefer TVIs showed significant growth of 12% and 20%, respectively, with flatbed TVI also reflecting a 7% rise.
Insights from DAT's Chief of Analytics
Ken Adamo, the Chief of Analytics at DAT, emphasized that December’s freight volumes remained robust despite calendar complications. He noted that Christmas falling on a Wednesday and the limited non-holiday weeks between Thanksgiving and year-end influenced the volumes. Adamo stated, "The combination of seasonal volumes and fewer shipping days, alongside truckers taking breaks for the holidays, contributed to higher spot prices compared to November. The net fuel rate for vans reached its peak average monthly value since January 2023."
Shift in Truckload Rates
The national averages for spot rates experienced an uplift across all major equipment types:
- Spot van rates were recorded at $2.11 per mile ($1.74 net fuel), showing an increase of 9 cents from November.
- Spot reefer rates reached $2.47 ($2.06 net fuel), increasing by 2 cents.
- Spot flatbed rates stood at $2.39 ($1.94 net fuel), also up by 2 cents.
Meanwhile, national average contract rates for vans and flatbeds inched upwards last month:
- Contract van rate increased to $2.42 per mile, up by 2 cents.
- Contract reefer rates remained stable at $2.74 per mile.
- Contract flatbed rates rose by 3 cents to $3.06 per mile.
Trends Indicating Tightening Capacity
Adamo addressed the narrowing gap between spot and contract rates for both vans and reefers, marking the smallest difference since March 2022, a period characterized by severe deflation in spot rates. He pointed out, "When the disparity between spot and long-term contract rates trends lower, it signals that capacity is tightening, shifting more negotiating power toward truckload carriers."
Understanding the DAT Truckload Volume Index
The DAT Truckload Volume Index illustrates fluctuations in load volumes with pickup dates within the month. Using January 2015's load volumes as a baseline (set at 100), it aggregates information from DAT RateView, a comprehensive truckload pricing database that manages rates for around 3 million loads each month.
DAT's benchmark spot rates derive from invoice data for hauls spanning at least 250 miles with pickup dates in the reported month. These rates also account for average fuel surcharges.
About DAT Freight & Analytics
DAT Freight & Analytics is recognized for operating North America's most extensive truckload freight marketplace, along with insightful truckload freight data analytics services. Shippers, brokers, carriers, and industry analysts turn to DAT for valuable market trends and data insights stemmed from more than 400 million annual freight matches, covering an impressive database of $150 billion in freight market transactions.
Since its inception in 1978, DAT stands as a unit of Roper Technologies (Nasdaq: ROP), an esteemed member of the Nasdaq 100, S&P 500, and Fortune 1000. To learn more about DAT's comprehensive offerings, visit their official website.
Frequently Asked Questions
What is the current trend in truckload volumes?
Truckload volumes have increased, showcasing strong demand leading into the holiday season.
How has the Truckload Volume Index changed recently?
In December, the van and reefer TVIs increased, while flatbed TVI slightly decreased.
Who provided insights on the truckload market?
Ken Adamo, the Chief of Analytics at DAT, shared his observations regarding the December market trends.
What do tightening capacities mean for truckload carriers?
Tightening capacities suggest that truckload carriers may have increased negotiating power as demand grows.
Where can I find more information about DAT Freight & Analytics?
For comprehensive insights and updates, visit DAT's official website.
