Dive Brief:
- National average van linehaul rates, excluding fuel surcharges, rose by 3 cents to $1.60 per mile in August compared to the previous year, marking the first increase since March 2022, according to a DAT report released Wednesday.
- Likewise, the national average reefer linehaul rates increased by 1 cent to $1.96 per mile from August 2023, while flatbed rates reached $1.92, up 2 cents year over year.
- This year-over-year growth is expected to continue into the fall shipping season, said Ken Adamo, Chief of Analytics at DAT. However, he noted that these comparisons offer “little consolation” to truckers seeking immediate rate improvements.
Dive Insight:
Contract rates remain down year over year, extending a decline that began in August 2022, highlighting ongoing pricing challenges, DAT observed.
August also erased the spot rate gains made over the summer, with dry van rates dropping by 5 cents compared to July, reefer rates falling by 4 cents, and flatbed rates decreasing by 7 cents, according to DAT.
On a positive note, DAT’s volume index showed a 2.8% month-over-month increase for van freight, while reefer volumes grew by 4.3%, and flatbed volumes edged higher.
Despite ongoing market difficulties, some trucking executives and analysts have pointed to promising signs of a potential recovery from the freight recession.
“It’s a little early to declare a full market shift,” said Werner Enterprises Chairman and CEO Derek Leathers during the Morgan Stanley 12th Annual Laguna Conference last week. “However, we were encouraged by Q2 performance post-road check, the stabilization of rates, and the upcoming opportunities with peak season to restore more typical seasonal trends.”