Truckload freight volumes remained strong in June while pricing on the spot market was weighed down by a growing supply of available capacity, said DAT Freight & Analytics, operators of the DAT One truckload freight marketplace and DAT iQ data analytics service.
DAT’s June Truckload Volume Index (TVI) for dry van freight was 240, up 6% compared to May; the refrigerated TVI was 173, down 0.6%; and the flatbed TVI was 245, up 5%. Changes in the TVI reflect the number of loads moved with a pickup date during the month reported.
The national average price to move van and flatbed freight under contract each hit monthly highs in June. The van rate rose 1 cent to $3.29 per mile while the flatbed rate increased 3 cents to $3.90 a mile. The contract reefer rate was $3.56 a mile, unchanged from May.
On the spot market, the national average van rate fell to $2.68 per mile, down 1 cent compared to May, while the spot reefer rate was $3.04 per mile, down 2 cents. The flatbed rate averaged $3.46 per mile, up 2 cents month over month and a new record.
Spot rates are negotiated by the carrier and freight broker as one-time transactions and should incorporate an amount to help cover the carrier’s fuel expense based on diesel prices at the time. Surcharges in June averaged 75 cents a mile for van freight, 82 cents a mile for reefers and 90 cents a mile for flatbed freight, all record highs. Removing an amount equal to an average fuel surcharge, the spot van line-haul rate was $1.93 a mile, the reefer rate was $2.22 a mile and the flatbed rate was $2.56 a mile.
Year over year, the average spot van was unchanged, the reefer rate was down 6 cents and the flatbed rate was up 31 cents. However, fuel cost $3.29 a gallon as a national average in June 2021 compared to $5.75 last month.
Capacity on the Spot Market Outpaced Demand
The number of loads posted to the DAT One load board network declined 20% compared to May and fell 26% year over year. Capacity outpaced demand, with 7% more trucks on the network compared to May.
The national average van load-to-truck ratio fell from 4.4 in May to 3.9, meaning there were 3.9 available loads for every van on the DAT network. The reefer load-to-truck ratio was 7.0, down from 7.5. The flatbed ratio dropped from 63.3 to 37.6.
No Freight Recession in Q2
“Downward pressure on spot rates in June was driven by a combination of high fuel prices and a record number of trucks available for work,” said Ken Adamo, DAT’s Chief of Analytics. “While small trucking companies and independent operators are exiting the market, it’s not for a lack of freight. Overall truckload volumes were strong in June as they were throughout the second quarter and now into the first half of July.”
