DAT: Truckload Volumes Remain Strong in March; Spot Rates Decline

Rhea-AI Summary

In March, DAT Freight & Analytics reported an increase in truckload freight volumes, with the Truckload Volume Index for dry van freight rising 23% month-over-month. Contract rates reached record highs, with van rates averaging $3.28 per mile, up 19 cents. However, spot market rates softened, with the national average van rate dropping to $3.06 per mile. Fuel costs surged by $1.07 per gallon compared to February, significantly impacting operating costs for small trucking companies. The load-to-truck ratio fell, indicating excess truck supply on the spot market.

Positive

• Truckload Volume Index for dry van freight rose 23% in March.
• Contract van freight rate reached a record high at $3.28 per mile.
• Contract rates for refrigerated and flatbed freight also saw increases.

Negative

• Spot market van rate fell to $3.06 per mile, down 3 cents from February.
• Fuel costs increased by $1.07 per gallon compared to February, raising operating expenses.
• Load-to-truck ratio declined, signaling oversupply of trucks.

DENVER--(BUSINESS WIRE)-- Weaker spot market rates and skyrocketing fuel costs in March overshadowed an increase in stronger truckload freight volumes and record-high prices for loads moving under contract, said DAT Freight & Analytics, operators of the industry’s largest truckload freight marketplace and DAT iQ data analytics service.

DAT’s March Truckload Volume Index (TVI) for dry van freight was 305, up 23% compared to February; the refrigerated TVI was 206, a 13% increase. The flatbed TVI was 247, up 24% month over month. The increases reflect more loads moved last month and March having more shipping days compared to February.

Contract rates set records

The price to move van freight under contract increased 19 cents to $3.28 per mile as a national average, eclipsing the previous high set in February. The average contract reefer rate was $3.45 a mile, up 20 cents, while the flatbed rate gained 24 cents to $3.69 a mile.

On the spot market, the national average van rate fell to $3.06 per mile, down 3 cents compared to February, while the spot reefer rate was $3.44 per mile, down 9 cents. The flatbed rate was $3.45 per mile, up 26 cents month over month and a new record.

Spot truckload rates, negotiated as one-time transactions between a freight broker and carrier, incorporate a fuel surcharge. Removing the surcharge, the spot van rate fell 21 cents last month to an average of $2.42 a mile and the reefer rate slid 28 cents to $2.74 a mile. The flatbed rate rose 5 cents to $2.68 a mile.

Supply of trucks outpaced demand

Spot rates remain well above year-ago levels, when the average price of fuel was $3.15 a gallon: in March 2021, the national average van rate was $2.67 per mile, the reefer rate was $2.95 a mile and the flatbed rate was $2.78 a mile. Spot-market loads continued to be abundant. There were 3.7% more loads posted to the DAT load board network last month compared to March 2021.

However, signaling that the supply of trucks on the spot market outpaced demand, the national average van load-to-truck ratio fell to 4.6, down from 7.3 in February, meaning there were 4.6 available loads for every van on the DAT network. The reefer load-to-truck ratio was 8.4, down from 13.7. The flatbed ratio increased from 83.9 to 89.8.

Why March was unique

“What made March unique is that shippers paid historically high prices to ensure that more of their loads moved under a longer-term contract, reducing their need for trucks on the spot market and causing rates to soften,” said Ken Adamo, DAT’s Chief of Analytics. “At the same time, carriers’ operating costs increased because of higher fuel prices. As a national average, fuel cost $1.07 per gallon more in March compared to February and $1.95 a gallon year over year.”

Small trucking companies and independent operators experienced significantly higher operating costs and lower revenues than they’ve become accustomed to over the past couple of years, said Adamo.

For more information about DAT iQ, go to dat.com/iQ.

About the DAT Truckload Volume Index

The DAT Truckload Volume Index is produced by DAT iQ and reflects the change in the number of van, refrigerated and flatbed loads moved under contract and the spot market with a pickup date during that month. Index numbers are normalized each month to accommodate any new data sources without distortion. Baseline of 100 equals the number of loads moved in January 2015.

Rates are derived from RateView, DAT’s database of $116 billion in annualized freight transactions, and include over-the-road lanes with lengths of haul of 250 miles or more. Spot rates represent the payments made to carriers by freight brokers, third-party logistics providers and other transportation buyers. Contract rates are paid by the shipper to the carrier.

About DAT Freight & Analytics

DAT Freight & Analytics operates DAT One, the largest truckload freight marketplace in North America, and the DAT iQ data analytics service. Shippers, transportation brokers, motor carriers, news organizations and industry analysts rely on DAT for market trends and pricing insights derived from 249 million freight matches on the spot market and a database of $116 billion in annualized spot and contract truckload freight 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, Fortune 500 and Russell 1000 indices. DAT.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220418005592/en/

Annabel Reeves, Corporate Communications

503-501-0143; annabel.reeves@dat.com

Source: DAT Freight & Analytics

FAQ

What were the truckload freight volumes in March 2023 for ROP?

The Truckload Volume Index for dry van freight was 305, a 23% increase from February.

How did contract rates change in March 2023 for ROP?

Contract van freight rates reached $3.28 per mile, a record increase of 19 cents.

What impact did fuel prices have on trucking costs in March 2023?

Fuel prices surged by $1.07 per gallon compared to February, significantly affecting operating costs for trucking companies.

How did spot market rates perform in March 2023 for ROP?

The national average spot van rate decreased to $3.06 per mile, down 3 cents from February.

What does the load-to-truck ratio indicate for ROP in March 2023?

The load-to-truck ratio fell to 4.6, down from 7.3 in February, indicating an oversupply of trucks.