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A weather-related bump in demand for truckload capacity pushed spot freight volumes to all-time highs for January, reported DAT Freight & Analytics.
“Winter weather increased the need for trucks at a time when shippers were moving holiday returns and springtime retail goods through supply chains, and for-hire carriers were rejecting a higher percentage of contracted loads,” says Ken Adamo, DAT chief of analytics. “This was not a case of freight volumes sustainably trending higher. Barring some other disruptive event, we expect demand for truckload capacity to meet seasonal expectations during the months ahead.”
Key takeaways:
- All three equipment types in the DAT Truckload Volume Index (TVI) increased compared to December, including van TVI: 250, up 11% month over month and 6% higher year over year; refrigerated TVI: 206, up 14% month over month and 1% year over year; and flatbed TVI: 232, up 11% month over month and 6% year over year.
- Load-to-truck ratios increased for all three equipment types, including van ratio: 2.7, up from 1.9 in December; reefer ratio: 4.1, up from 2.6; and flatbed ratio: 8.3, up from 5.1.
- Demand for trucks on the spot market pushed broker-to-carrier rates higher. The van rate was $2.14 per mile, up 4 cents compared to December, while the reefer rate jumped 10 cents to $2.57 a mile. The flatbed rate rose 6 cents to $2.47 a mile. Year over year, average spot rates were down 24 cents for vans, 21 cents for reefers, and 29 cents for flatbeds.
- Demand for spot reefer equipment increases during cold snaps as shippers look for ways to protect van freight from freezing.
- Rates for contracted van and reefer freight were unchanged month over month. DAT’s benchmark contract van rate was $2.49 a mile, and the reefer rate was $2.57. The flatbed rate declined 4 cents to $3.10, the lowest monthly average since May 2021.
- The gap between spot and contract rates narrowed compared to December. It was 35 cents for van freight, down 4 cents; 31 cents for reefer loads, down 10 cents; and 63 cents for flatbeds, also down 10 cents.
