DAT releases 2023 Freight Focus report

Rhea-AI Summary

DAT Freight & Analytics has released its 2023 Freight Focus report, highlighting key trends that will shape the transportation strategies this year. Truckload freight professionals are adopting a data-driven approach to cope with challenges like rising fuel and labor costs. The report indicates that supply chain networks are stabilizing, requiring fewer truckloads for the same consumer spending. DAT forecasts a potential increase in spot rates and market demand by Q2 2023, emphasizing the need for cost control and flexibility.

Positive

• Forecasts indicate spot rates may increase in Q2 2023, suggesting a recovery in demand.
• Supply chains are stabilizing, allowing for reduced truckload requirements despite ongoing economic pressures.

Negative

• Thinner profit margins expected in 2023 may pressure carriers to maximize utilization.
• Ongoing higher transportation costs could affect profitability and operational strategies.

After a challenging two years, truckload freight professionals are taking a measured, data-driven approach to 2023

DENVER--(BUSINESS WIRE)-- From new consumer buying patterns to dramatically higher costs for fuel and labor, truckload freight professionals faced fresh challenges in 2022 that have led to a more measured, data-driven approach to 2023, according to a new annual report published by DAT Freight & Analytics.

DAT has released the 2023 Freight Focus report (Graphic: Business Wire)

DAT’s 2023 Freight Focus report outlines the issues that will drive transportation strategies and decisions in the year ahead.

“COVID-19 didn’t introduce new problems in transportation. Instead, it shined a bright spotlight on existing ones. Now is the time to fortify supply chains and build a more dynamic and proactive way of navigating this volatile marketplace,” said DAT President and CEO Claude Pumilia.

As economic conditions evolve and patterns emerge from DAT’s $137 billion in annual truckload freight transaction data, here are the key themes for 2023:

• Supply chain networks are more balanced as shipping patterns stabilize and adjust to higher transportation costs. With shippers prioritizing the “in full” part of the On Time-In Full (OTIF) equation, fewer truckloads are needed to move even the same amount of consumer spending as during the height of the pandemic.
• With thinner margins in 2023, carriers need to maximize utilization. That means reducing empty miles, emphasizing fuel economy, and coordinating with shippers and brokers to reduce dwell times.
• The next freight cycle is around the corner. Spot truckload rates and volumes declined throughout 2022 while the gap between national average spot and contract van rates steadily increased until December when the spread began to close. DAT iQ forecasting models point to spot rates hitting bottom in Q1 2023, with the entire truckload market entering into the next cycle of increased demand in Q2.
• Supply chain data providers that entered the market within the last several years now have a track record. Shippers, brokers and carriers can more easily distinguish data services that deliver reliable pricing benchmarks and forecasts; are an independent source of data; understand the dynamics of trucking and logistics; and are in the market for the long haul.

“Above all, finding a balance between cost control and flexibility will remain a focal point for businesses in 2023,” Pumilia said. “Analytics from trusted sources can go a long way toward providing transparency in negotiations, achieving savings and maintaining good relationships among transportation partners.”

DAT’s 2023 Freight Focus report also outlines regulatory issues, top freight markets and keys to success for transportation decision-makers in 2023. It is free and available to download at https://cloud.comms.dat.com/carrier-freight-focus-2023

About DAT Freight & Analytics

DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Transportation brokers, motor carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230105005177/en/

Annabel Reeves

Corporate Communications, DAT Freight & Analytics

PR@dat.com; 503-501-0143

Stephen Petit

SiefkesPetit Communications

petit@siefkespetit.com; 425-443-8976

Source: DAT Freight & Analytics

FAQ

What does DAT Freight & Analytics' 2023 Freight Focus report highlight?

The report emphasizes a data-driven approach to overcoming challenges such as rising fuel and labor costs, and forecasts increased spot rates in Q2 2023.

How are supply chain networks changing in 2023?

Supply chain networks are stabilizing, leading to fewer truckloads being needed to manage similar consumer spending levels.

What are the key themes from DAT's 2023 Freight Focus report?

Key themes include balancing cost control and flexibility, maximizing utilization, and the anticipation of a new freight cycle.

What impact are rising transportation costs having on carriers?

Rising transportation costs are forcing carriers to focus on reducing empty miles and dwell times while maximizing efficiency.

What is the outlook for truckload spot rates according to DAT's report?

DAT forecasts that spot truckload rates, which declined in 2022, are likely to reach their lowest point in Q1 2023 before entering a recovery phase.