Truckload Freight Volumes and Rates in August
In August, truckload freight volumes and rates took some unexpected turns, highlighting a clear split in trends. While the number of shipments increased, prices continued to drop for the third month in a row. Insights from DAT Freight & Analytics provide a closer look at these developments. They manage the DAT One freight marketplace and offer the DAT iQ data analytics service, both of which deliver critical data about market trends.
Trends in Volume Index
The DAT Truckload Volume Index (TVI), an important metric for monitoring loads transported each month, saw positive growth in all three equipment categories last month. Here’s a summary of the numbers:
Overview of Equipment Types
- Van TVI: 289, reflecting a solid 2.8% increase from the previous month.
- Refrigerated (reefer) TVI: 220, marking an impressive 4.3% improvement.
- Flatbed TVI: 287, showing a slight gain of 0.3%.
Interestingly, both van and refrigerated freight types saw growth compared to last year. The van TVI rose by 6.3%, while the reefer TVI jumped up by 17.6%. On the other hand, the flatbed TVI experienced a small decline of 0.7% compared to August of the previous year.
Truckload Rate Challenges
As usual, August posed challenges for truckload rates. Ken Adamo, the Chief of Analytics at DAT, pointed out that while linehaul rates reflected positive year-on-year trends for the first time since March 2022, this news offers little comfort for truckers hoping for immediate improvements in pricing.
Movements in Spot and Contract Rates
In August, national average spot truckload rates fell across all equipment categories compared to July:
- Spot Van: $2.01 per mile, down by 5 cents.
- Spot Reefer: $2.41 per mile, decreasing by 4 cents.
- Spot Flatbed: $2.41 per mile, falling by 7 cents.
As for linehaul rates, the monthly averages were as follows: The van linehaul rate dropped to $1.60 a mile, down 3 cents from the previous month but still 3 cents higher than in August last year. The reefer rate saw a slight dip of 2 cents to $1.96, remaining marginally above the previous year. Meanwhile, the flatbed rate fell to $1.92, down 5 cents but still 2 cents higher than last year.
Pressure on Contract Rates
Freight moving under long-term contracts also saw a decline in rates compared to July:
- Contract Van Rate: $2.40 per mile, reduced by 3 cents.
- Contract Reefer Rate: $2.74 per mile, down by 7 cents.
- Contract Flatbed Rate: $3.08 per mile, also a 3-cent drop.
All contract rates across equipment types have been below last year's levels since August 2022, underscoring the ongoing pricing pressures faced by truckload carriers. Approximately 85% of truckload freight is moved under contracts, which is a key aspect of the industry’s operations.
Declining Load-to-Truck Ratios
The national average load-to-truck ratios showed a similar declining trend among all equipment types:
- Van Ratio: 3.6, down from 4.2 in July, indicating that for every available van truck, there were 3.6 loads listed on the DAT One marketplace.
- Reefer Ratio: 6.0, down from 6.5.
- Flatbed Ratio: 9.8, down from 11.9.
These ratios are essential as they indicate the dynamics of supply and demand within the truckload sector, which directly impacts spot freight pricing.
Understanding the DAT Truckload Volume Index
The DAT Truckload Volume Index tracks changes in load counts for pickups recorded in a given month. It uses a baseline of 100 that refers to the number of loads transported in January 2015, according to DAT RateView, a trusted truckload pricing database that evaluates an average of 3 million loads monthly.
DAT’s benchmark spot rates are based on invoice data for hauls over 250 miles, classified by pickup dates within the reported month. It's also important to note that linehaul rates exclude amounts equivalent to average fuel surcharges.
About DAT Freight & Analytics
DAT Freight & Analytics runs the largest truckload freight marketplace in North America and provides extensive data analytics services for the trucking industry. Shippers, brokers, carriers, and various organizations rely on insights from DAT, which are derived from over 400 million freight matches and a significant database of annual freight market transactions totaling around $150 billion.
Founded in 1978, DAT is part of Roper Technologies (Nasdaq: ROP), a key player in the Nasdaq 100, S&P 500, and Fortune 1000, with its headquarters located in Beaverton, Oregon.
Frequently Asked Questions
What does the Truckload Volume Index indicate?
The Truckload Volume Index (TVI) is a key measure of the volume of loads transported in a specific month.
How have truckload rates changed recently?
Recent data shows a decline in both spot and contract truckload rates, continuing a trend seen in recent months.
What do load-to-truck ratios imply?
Load-to-truck ratios indicate the balance of supply and demand, which directly affects freight pricing in the market.
Who benefits from DAT Freight & Analytics data?
DAT's data is widely used by shippers, transportation brokers, carriers, and industry analysts looking for market trends and insights.
What is Roper Technologies' connection to DAT?
DAT operates as a business unit of Roper Technologies, which is publicly traded on the Nasdaq and features in various financial indices.
