Full freight volumes hit new highs in June and spot and contract rates remained in record territory as surging retail imports and high-tech shipments fueled demand for transportation services, according to DAT Freight & Analytics, operator of the largest truck freight market in North America.

The DAT truckload volume index was 237 in June, an 11% increase from May and a record high. The index is an aggregate measure of the loads of dry, refrigerated (refrigerated) and flatbed vans transported by truck carriers and an industry standard indicator of commercial freight activity. A benchmark of 100 reflects the freight volume in January 2015.

Rates remain close to historic highs

• The national average rate for van loads on the DAT One cargo panel network was $ 2.68 per mile in June, down 1 cent from the historic high in May (all rates include a fuel surcharge) .
• The national average spot rate for refrigerated freight fell 1 cent to $ 3.10 per mile month over month (m / m), while the flat rate increased 3 cents to $ 3.15.
• Contract truck loading rates set records for all three types of equipment. The average van fare was $ 2.73 per mile, up 6 cents from May. The reefer contract fare rose 3 cents to $ 2.88 per mile, while the flat rate jumped 7 cents to $ 3.10 per mile.

Spot load displays decrease as more freight moves under contract

• Overall truck load volumes increased last month, but the number of loads posted to the DAT One network was down 6.0% from May. This marked a shift from the cash market to more freight carried under contract or by other means.
• The number of trucks available on DAT One increased by 13.2% compared to May. While capacity remains tight, there are signs workers are returning to the industry, with 24,500 new transportation jobs added in June.
• With fewer loads in the spot market and more trucks available, load-to-truck ratios have declined for all three types of equipment. The national average van ratio was 5.6 in June, meaning there were 5.6 loads available for each van posted on the DAT network, up from 6.1 in May. The reefer ratio was 11.6, down from 13.0, and the flatbed ratio fell from 97.1 in May to 66.8 last month.

In June, shippers faced a supply-related capacity shortage, said Ken Adamo, chief analytics officer at DAT. “While the number of trucks posted on the DAT load board network increased significantly in June, aggregate demand accelerated at a faster rate. The typical seasonal drop in contract and spot rates by Thanksgiving seems less likely in 2021. “

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July outlook

• Cash truck load rates typically decline after the July 4 holiday break, with back-to-school and back-to-school retail products already positioned and the production season having passed its peak. In some cases, reefer carriers will shift to transporting dry vans and other types of cargo, which could provide relief to retailers looking for transportation services for year-end cargo.
• Usually 12-15% of all truckload volume moves in the spot market. As of July, that figure is closer to 25%, but is expected to tighten as more shippers adopt a portfolio-based transportation sourcing strategy (dedicated, contract and spot, as well as using a combination of active and non-active providers).
• Between July 4 and Thanksgiving, weekly truckload volumes of product typically decline by 21% on average, resulting in reefer carriers carrying 7,300 fewer loads per week by the end of November.
• Comparing the prices entering the market with those exiting shippers’ routing guides, contract prices were up in early July: prices for new routing guide contracts increased by 7% in the two weeks ending. July 1 compared to the previous two week period. We expect contract rates to remain high at least until the fall.