We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Truckload freight volumes and contract prices stayed high in March despite expensive gas

Truckload freight volumes and contract prices stayed high in March despite expensive gas

Spot market prices dipped for the month but are still high historically, ATA and DAT say.

American_Trucking_Associations_For_Hire_Truck_Tonnage_Index.jpeg
American Trucking Associations
April 22, 2022
DC Velocity Staff
No Comments

Although freight rates on the spot market dropped slightly from their historic highs last month, truckload freight volumes and contract prices soared to record levels, new statistics show.

By one measure, the nation’s trucking freight volumes rose 2.4% in March after rising 0.7% in February, according to the American Trucking Associations' seasonally adjusted (SA) For-Hire Truck Tonnage Index. Measured against a threshold of 100 set in 2015, the index equaled 118.8 in March versus 116.1 in February.

“During the first quarter, the index rose 2.4% from the final quarter of 2021 and increased 2.6% from a year earlier. While there might be some recent softness in the spot market, for-hire contract freight tonnage remains sold and is only limited by lack of capacity, both drivers and equipment," ATA Chief Economist Bob Costello said in a release.

 By ATA’s count, contract freight was solid in March, posting its largest monthly gain since May 2020 and marking its eighth straight month-to-month improvement, Costello found.

Those trends ran parallel to another measure of freight activity in March, as truckload freight marketplace operator DAT Freight & Analytics said that weaker spot market rates and skyrocketing fuel costs for the month overshadowed an increase in stronger truckload freight volumes and record-high prices for loads moving under contract.

Those factors hit small trucking companies and independent operators hard, as they saw significantly higher operating costs and lower revenues than they’ve become accustomed to over the past couple of years, Ken Adamo, DAT’s chief of analytics, said in a release.

“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,” Adamo said. “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 [more] year over year.” 

DAT measured those market variables with its Truckload Volume Index (TVI), which for dry van freight was 305, up 23% compared to February; the refrigerated TVI was 206, a 13% increase, and the flatbed TVI was 247, up 24% month over month.

The index also highlighted the difference between the contract market and spot truckload rates, which are negotiated as one-time transactions between a freight broker and carrier.

By cost, the price to move van freight under contract increased 19 cents in March 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. 

However, spot market prices tumbled, as 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.

Still, spot rates remain well above year-ago levels: in March 2021, the national average van rate was just $2.67 per mile, the reefer rate was $2.95 a mile, and the flatbed rate was $2.78 a mile, DAT said.

Trucking
KEYWORDS ATA - American Trucking Associations DAT Freight & Analytics
  • Related Articles

    Freight volumes stayed flat in July, as trucking fleet utilization rose to highest point of 2022

    Truckload spot volumes soared sequentially in March, down from 2014, DAT says

    Truckload index hits all-time high in March; intermodal index declines

Recent Articles by DC Velocity Staff

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

Warehouse robots drive change in automotive plant

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: top supply chain risk of 2023 is semiconductor shortage

  • Big and bulky last-mile delivery segment set for hot growth

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

Now Playing on DCV-TV

1b952214 50bc 4b17 8699 b7fd3de34b0c

The Right Way Versus the Wrong Way Equals BIG $ When Conducting Transportation Sourcing Events

DCV-TV 4: Viewer Contributed
What is the "smart" way to source your transportation and why is it so important? Because the carriers are smart and they will provide better rates and service when things are done the right way versus the "wrong" way. In short, from a carrier's perspective sourcing events are a clear indication whether a shipper...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing