DAT Truckload Volume Index: July freight volumes and rates chilled by seasonality
August 18 2023 - 10:23AM
Business Wire
Truckload freight volumes fell last month and national benchmark
spot rates for dry van and refrigerated (“reefer”) loads retreated
from their gains in June, reported DAT Freight & Analytics,
which operates the industry’s largest online freight marketplace
and DAT iQ data analytics service.
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July freight volumes and rates chilled by
seasonality (Graphic: DAT Freight & Analytics)
The DAT Truckload Volume Index (TVI), a measure of loads moved
during a given month, was lower in July for all three equipment
types:
- Van TVI was 226, down 7.0% from June and 3.0% lower
year-over-year.
- Reefer TVI slipped to 169, 3.4% lower than in June but 1.2%
higher year-over-year.
- Flatbed TVI was 238, 12.8% lower compared to June but 3.5%
higher year-over-year.
“Shippers faced service disruptions at the ports and in the
less-than-truckload sector but were able to secure van capacity
without causing the needle to move on spot rates and volumes,” said
Ken Adamo, Chief of Analytics.
Despite month-over-month declines, the reefer and flatbed TVI
numbers were the highest on record for July as fresh and frozen
food, metals, machinery, construction materials and other seasonal
freight moved through supply chains.
Demand for trucks slowed
National average load-to-truck ratios for van and reefer freight
have been virtually unchanged for three straight months:
- The van ratio was 2.6, equal to June and down from 3.8 in July
2022.
- The reefer ratio was 3.8 - unchanged from June and down from
7.2 a year earlier.
- The flatbed ratio was 7.1, down from 9.7 in June and
significantly down from 21.8 in July 2022.
Spot, contract rates dipped
Reflecting flat demand, DAT’s benchmark spot rates slipped in
July:
- The spot van rate was $2.07 per mile, down 1 cent compared to
June and 56 cents lower than in July 2022.
- The spot reefer rate dipped 3 cents to $2.44 per mile and 60
cents lower year-over-year.
- The spot flatbed rate was $2.54 a mile, down 7 cents month over
month and 72 cents lower year-over-year.
Line-haul rates, which subtract an amount equal to a fuel
surcharge, declined as well. DAT’s benchmark van line-haul rate was
$1.63 per mile, down 2 cents compared to June. The reefer line-haul
rate fell 5 cents to $1.96 per mile and the flatbed line-haul rate
dropped 9 cents to $2.01 per mile.
The average fuel surcharge increased by 2 cents to an average of
44 cents a mile for van freight, 48 cents for reefers and 53 cents
for flatbeds in July.
“Spot rates, as a reminder, are ‘all-in’ rates, meaning no
separate fuel surcharge to help mitigate the risk of fuel price
fluctuations. You have to negotiate each individual load with fuel
and operating costs in mind, which is not always easy,” Adamo said.
“The sudden increase in fuel prices is testing the wherewithal of
small carriers at a time when freight volumes are in a seasonal
lull.”
DAT’s benchmark rates for contracted freight strengthened
compared to pricing on the spot market. The van rate fell 1 cent to
$2.57 a mile, the reefer rate gained 3 cents to $2.91 a mile and
the flatbed rate rose 5 cents to $3.29 a mile.
After closing for three straight months, the spread between
contract and spot rates was unchanged for van freight and increased
by 6 cents for reefers and 12 cents for flatbed loads. The size of
the gap is an indicator of bargaining power among shippers, brokers
and carriers, Adamo explained.
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number
of loads with a pickup date during that month; the actual index
number is normalized each month to accommodate any new data sources
without distortion. A baseline of 100 equals the number of loads
moved in January 2015, as recorded in DAT RateView, a truckload
pricing database and analysis tool with rates paid on an average of
3 million loads per month.
Spot truckload rates are negotiated for each load and paid to
the carrier by a freight broker. DAT benchmark rates are derived
from payments to carriers by freight brokers, third-party logistics
providers and other transportation buyers for hauls of 250 miles or
more with a pickup date during the month reported. DAT’s rate
analysis is based on $150 billion in annualized freight
transactions.
Load-to-truck ratios reflect truckload supply and demand on the
DAT One marketplace and indicate the pricing environment for
truckload freight.
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload
freight marketplace in North America. Shippers, transportation
brokers, carriers, news organizations and industry analysts rely on
DAT for market trends and data insights based on more than 400
million freight matches and a database of $150 billion in annual
market transactions.
Founded in 1978, DAT is a business unit of Roper Technologies
(Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000
indices.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230818042461/en/
Annabel Reeves Corporate Communications, DAT Freight &
Analytics PR@dat.com / annabel.reeves@dat.com; 503-501-0143
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