Spot truckload freight availability in May reached its highest point since September, 2015, increasing 7.3% compared to April and 63% year-over-year, reported DAT Solutions, which operates the industry’s largest on-demand exchange for spot truckload freight.
A steady increase in van and reefer freight volume, combined with higher rates and load-to-truck ratios, are signs that “we are leaving the freight recession behind in the rear-view mirror,” said Mark Montague, DAT industry pricing analyst.
Van and refrigerated freight activity led the way in May, with van volume gaining 16% compared to April and reefer freight volume up 19%. This indicates higher demand for trucks to move dry goods and agricultural products before the start of the summer, Montague said. Flatbed activity slipped 2.% month over month, in line with seasonal norms.
Total freight volumes beat prior-year comparisons for the 10th consecutive month. Compared to May 2016, van load availability jumped 86%, reefers increased 87%, and flatbeds added 56%.
Amid higher demand for truckload capacity, spot rates were higher for all three equipment types.
Average spot van and refrigerated rates both increased in May, with the van rate gaining 2 cents to $1.69 per mile compared to April and 15 cents year over year. The reefer rate was $2.02 per mile, an 8-cent increase compared to April and up 13 cents compared to May 2016.
The flatbed rate was $2.10 per mile, up 3 cents month over month and 8 cents year over year.
Rates continued to rise for all three trailer types in the first week of June. Montague expects van and reefer pricing and volume to be elevated through the Fourth-of-July weekend, when freight activity typically begins to taper off.
Reference rates are the averages, by equipment type, based on $33 billion of actual transactions between freight brokers and carriers, as recorded in DAT RateView. Reference rates per mile include fuel surcharges, but not accessorials or other fees. Beginning in January 2015, the DAT Freight Index was rebased so that 100 on the Index represents the average monthly volume in the year 2000. Additional trends and analysis are available at DAT Trendlines.