DAT Truckload Volume Index: Freight volumes closed strong in November
December 14 2023 - 9:09AM
Business Wire
A post-Thanksgiving surge in truckload freight volumes made for
a solid November overall compared to previous years, reported DAT
Freight & Analytics, which operates the DAT One online freight
marketplace and DAT iQ data analytics service.
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Freight volumes closed strong in November
(Photo: DAT Freight & Analytics)
The DAT Truckload Volume Index (TVI), an indicator of loads
moved in a month, fell for all three equipment types:
- Van TVI: 232, down 9.0% compared to October
- Refrigerated TVI: 191, down 3.5%
- Flatbed TVI: 232, down 11.1%
“Thanksgiving and Black Friday were early in the month, which
meant there was almost a full week of shipment activity after the
holiday,” said Ken Adamo, DAT chief of analytics. “Businesses
running leaner inventories compared to the last couple of years are
taking advantage of lower transportation rates as they position
goods ahead of peak retail shopping.”
Market remained flush with capacity
Shippers continued to benefit from ample truckload capacity.
“For every 10 carriers that left the market in November, eight new
ones came in,” Adamo said. “There’s been an acceleration of
capacity out of the long-haul freight sector, where carriers are
subject to spot-rate volatility and high diesel costs, and a shift
back to other parts of the economy, like regional dedicated
operations.”
Load-to-truck ratios, which measure the number of loads posted
to the DAT One marketplace relative to the number of trucks, were
at their lowest point for November since 2015:
- Van ratio: 2.1, unchanged from October
- Reefer ratio: 3.2, up from 2.9
- Flatbed ratio: 5.5, down from 6.3
Low ratios signal weak negotiating power for truckload carriers.
Changes in the ratio usually anticipate changes in the pricing
environment.
Van, reefer line-haul rates trended higher
National average broker-to-carrier spot rates showed little
movement in November. The van rate was $2.07 per mile, 2 cents less
than in October, while the reefer rate increased 3 cents to $2.49
per mile. The flatbed rate rose 5 cents to $2.43 a mile. Year over
year, average spot rates were down 16 cents for vans, 30 cents for
reefers and 19 cents for flatbeds, accounting for lower fuel costs
compared to November 2022.
Line-haul rates, which subtract an amount equal to an average
fuel surcharge, strengthened after five months of declines:
- Line-haul van rate: $1.57 per mile, up 2 cents compared to
October.
- Line-haul reefer rate: $1.94 a mile, up 7 cents.
- Line-haul flatbed rate: $1.83, unchanged.
Last month’s rates were higher than in November 2019, before the
supply chain disruptions of the pandemic. At that time, the
benchmark van line-haul rate was $1.52 per mile, the reefer rate
was $1.85 and the flatbed rate was $1.74.
Rates for contracted van and reefer freight declined for the
third straight month as pricing power continued to swing toward
shippers. DAT’s benchmark contract van rate fell 3 cents to $2.53
per mile in November, while the reefer rate fell 3 cents to $2.94.
The flatbed rate rose 4 cents to $3.17.
At 46 cents, the gap between spot and contract van rates was the
lowest since March 2022, when the average broker-to-carrier spot
rate was $3.05 and the contract rate was $3.26.
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number
of loads with a pickup date during that month. The actual index
number is normalized monthly to accommodate new data sources
without distortion. A baseline of 100 equals the number of loads
moved in January 2015, as recorded in DAT RateView, a truckload
pricing database and analysis tool with rates paid on an average of
3 million loads per month.
Spot truckload rates are negotiated for each load and paid to
the carrier by a freight broker. National average spot rates are
derived from payments to carriers by freight brokers, third-party
logistics providers, and other transportation buyers for hauls of
250 miles or more with a pickup date during the reported month.
Line-haul rates subtract an amount equal to an average fuel
surcharge. DAT’s rate analysis is based on $150 billion in
annualized freight transactions.
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload
freight marketplace in North America. Shippers, transportation
brokers, carriers, news organizations and industry analysts rely on
DAT for market trends and data insights based on more than 400
million freight matches and a database of $150 billion in annual
market transactions.
Founded in 1978, DAT is a business unit of Roper Technologies
(Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000
indices.
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version on businesswire.com: https://www.businesswire.com/news/home/20231214133463/en/
Annabel Reeves Corporate Communications, DAT Freight &
Analytics PR@dat.com / annabel.reeves@dat.com; 503-501-0143
Stephen Petit SiefkesPetit Communications 425-443-8976
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