Sign In  |  Register  |  About Los Altos  |  Contact Us

Los Altos, CA
September 01, 2020 1:26pm
7-Day Forecast | Traffic
  • Search Hotels in Los Altos

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

DAT Truckload Volume Index: Spot Rates Ended 2022 on an Upswing

Van TVI was second-highest December on record; peak season arrived later than expected

December 2022 was the first month-over-month positive change in spot truckload van and refrigerated freight rates since January, as severe weather and a late surge of holiday goods helped generate demand for capacity, said DAT Freight & Analytics, which operates the DAT One freight marketplace and the DAT iQ data analytics service.

The DAT Truckload Volume Index (TVI) for van freight was 215 in December, a 4.0% decline compared to November and 3.6% lower year over year. The van TVI was 5.9% higher than in December 2020 and was the second-highest December on record.

At 167, the refrigerated (“reefer”) TVI was 4.0% lower month over month and down 1.2% year over year. The flatbed TVI fell 11.8% compared to November but was 3.2% higher year over year.

“There was a peak season for truckload freight; it just arrived later than usual and with many of the variables you’d expect in December, from winter storms to a rush of retail sales boosted by last-minute deals for holiday shoppers,” said Ken Adamo, DAT Chief of Analytics. “To borrow a football term, sometimes you have to let the play develop and not count out a season or freight cycle.”

Spot van, reefer rates jumped

Spot truckload freight rates ended the year on a higher note, and line-haul rates increased substantially:

  • The national average spot van and reefer rate rose 3 cents from November to $2.41 per mile and $2.82 per mile, respectively. The average flatbed rate was $2.77 per mile, 3 cents lower than the November average.
  • The national average line-haul rate for van freight jumped 12 cents to $1.83 a mile, the highest since September. The reefer line-haul rate increased 13 cents to $2.19 a mile and the line-haul flatbed rate averaged $2.08 a mile, up 8 cents month over month.
  • Line-haul rates remained well below December 2022, when they averaged $2.60 a mile for van freight, $3.04 a mile for reefers and $2.60 a mile for flatbeds.

Load-to-truck ratios increased

DAT load-to-truck ratios reflected stronger demand for truckload services:

  • The national average van load-to-truck ratio rose from 2.7 to 3.4, meaning there were 3.4 loads for every van posted to the DAT One network last month.
  • The reefer ratio averaged 5.7, up from 4.9 in November, and the flatbed ratio was 9.8, up from 9.3.

Gap between contract and spot rates narrowed

While spot rates increased, rates declined for freight moving under longer-term contracts.

The average shipper-to-broker van rate slipped 8 cents in December to $2.96 a mile, unchanged compared to December 2021. The average contract reefer rate was $3.24 a mile, down 12 cents and 15 cents higher year over year, and the average flatbed rate fell 13 cents to $3.53 a mile, 19 cents higher year over year.

The gap between spot and contract rates narrowed during December to 55 cents for vans, 42 cents for reefers and 76 cents for flatbeds.

“December showed that seasonality is coming back to truckload freight,” Adamo said. “In your 2023 playbook, expect a slow January and February for spot freight volumes, which is consistent with previous years—at least, years that don’t include a Polar Vortex or pandemic.”

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. National average spot 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 $137 billion in annualized freight transactions.

Spot rates are “all-in” rates and do not include a separate fuel surcharge. Line-haul rates subtract an amount equal to an average fuel surcharge.

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 500 million freight matches and a database of $137 billion in annual market transactions.

Founded in 1978, DAT is a wholly owned subsidiary of Roper Technologies (NYSE:ROP), a diversified technology company and constituent of the S&P 500 and Fortune 500 indices.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 LosAltos.com & California Media Partners, LLC. All rights reserved.