DAT: After a robust May, truckload volumes slipped in June
DAT Freight & Analytics reported a decline in truckload volumes in June after a strong May. The Truckload Volume Index (TVI) decreased for van (down 9%), reefer (down 11%), and flatbed loads (down 7%) month over month. Year over year, the van and flatbed TVI dropped by 3% and 5%, respectively, while the reefer TVI rose by 7%. Despite the decline in volumes, spot truckload rates increased for three consecutive months, with van rates rising to $2.07 per mile, reefer rates to $2.45, and flatbed rates to $2.53. The average linehaul rates also saw an uptick. The load-to-truck ratios for van and reefer loads increased for the fourth straight month, indicating higher demand and fewer trucks in the marketplace.
- None.
- Truckload Volume Index (TVI) for van loads decreased by 9%.
- Truckload Volume Index (TVI) for reefer loads decreased by 11%.
- Truckload Volume Index (TVI) for flatbed loads decreased by 7%.
- Year-over-year decline in van TVI by 3%.
- Year-over-year decline in flatbed TVI by 5%.
The latest insights from DAT Freight & Analytics reveal an intriguing situation in the truckload market. While truckload volumes declined in June across van, reefer and flatbed categories, spot rates conversely rose for all three equipment types. This indicates increased pricing power despite reduced volume, likely due to constrained capacity or other supply chain bottlenecks.
Higher spot rates, especially with the third consecutive month of increases, suggest that demand, while volatile, remains robust enough to support elevated pricing. The increase in load-to-truck ratios further supports this, indicating a tighter market where fewer trucks are available relative to loads. This condition typically leads to higher spot rates. Van and reefer ratios have been climbing, reflecting a combination of higher demand and fewer available trucks, making freight transportation more competitive.
From an investor perspective, these dynamics imply that freight operators might maintain or improve profitability in the short-term due to higher spot and contract rates. However, the anticipated easing of freight activity during the summer may lead to rate stabilization or even reductions, impacting revenue growth. Investors should monitor these trends closely as they could signal upcoming shifts in market conditions.
The data presents a nuanced picture of the freight market. Despite the drop in truckload volumes, the increase in spot and contract rates across most categories is noteworthy. For van freight, a spot rate increase to
These increments might seem small, but in an industry with tight margins, such changes can significantly impact profitability. A rise in linehaul rates, which exclude fuel surcharges, further illustrates the pricing power carriers currently hold. Investors should weigh these factors against the backdrop of potential easing in freight activity later in the summer. A short-term gain in spot rates might not be sustainable and future projections should account for seasonal variations and economic conditions impacting freight demand.
Key financial takeaways should focus on the sustainability of these rate increases and how they align with broader economic indicators. Monitoring these metrics will be important for evaluating the financial health and future performance of freight operators.
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, retreated from all-time highs for van and refrigerated (“reefer”) loads in May:
-
Van TVI: 266, down
9% month over month -
Reefer TVI: 199, down
11% -
Flatbed TVI: 279, down
7%
Year over year, the van and flatbed TVI dipped
“The month ended strong for dry van freight, with nearly
Spot rates rose for all three equipment types
National average spot truckload rates increased for the third consecutive month in June:
-
Spot van:
per mile, up$2.07 6 cents -
Spot reefer:
a mile, up$2.45 4 cents -
Spot flatbed:
a mile, up$2.53 1 cent
The average van linehaul rate was
National average rates for contracted van and reefer freight ticked higher:
-
Contract van rate:
per mile, up$2.44 1 cent -
Contract reefer rate:
a mile, up$2.81 2 cents -
Contract flatbed rate:
a mile, down$3.14 2 cents
Van and reefer load-to-truck ratios increased
National average van and reefer load-to-truck ratios increased for the fourth straight month in June, reflecting a combination of higher demand and fewer trucks in the marketplace:
- Van ratio: 4.7, up from 4.4 in May, meaning there were 4.7 loads for every van truck on the DAT One marketplace
- Reefer ratio: 7.0, up from 6.3
- Flatbed ratio: 14.6, down from 18.0
Ratios were higher year over year. In June 2023, the average van ratio was 3.5, the reefer ratio was 5.5, and the flatbed ratio was 13.3.
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for spot truckload freight.
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. 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.
DAT benchmark spot rates are derived from invoice data for hauls of 250 miles or more with a pickup date during the month reported. Linehaul rates subtract an amount equal to an average fuel surcharge.
About DAT Freight & Analytics
DAT Freight & Analytics operates both the largest truckload freight marketplace and truckload freight data analytics service in
Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. DAT is headquartered in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240717386462/en/
Annabel Reeves
PR@dat.com / annabel.reeves@dat.com; 503-501-0143
Source: DAT Freight & Analytics
FAQ
What was the change in the Truckload Volume Index (TVI) for van loads in June?
How did the reefer Truckload Volume Index (TVI) change year over year?
What was the spot truckload rate for van equipment in June?