June set new record for Truck freight
As the economy enters post-July 4 patterns DAT Freight & Analytics expects contract rates to remain elevated at least through the fall.
Truckload freight volumes reached new levels in June and spot and contract rates stayed in record territory as surging retail imports and peak produce shipments fueled demand for transportation services, according to DAT.
The DAT Truckload Volume Index was 237 (11% increase than May) in June.
The Index is build up measure of dry van, refrigerated (reefer) and flatbed loads .
The average van rate was $2.73 per mile, up 6 cents compared to May. The contract reefer rate increased 3 cents to $2.88 per mile, while the flatbed rate jumped 7 cents to $3.10 per mile.
Overall truckload volumes increased last month but the number of loads posted to the DAT One network fell 6.0% compared to May. This marked a shift from the spot market toward more freight moving under contract or other means.
The number of available trucks on DAT One increased 13.2% compared to May. Although capacity remains tight, there are signs that workers are coming back to the industry, with 24,500 new transportation jobs added in June.
The national average van ratio was 5.6 in June, meaning there were 5.6 available loads for every van posted to the DAT network, down from 6.1 in May. The reefer ratio was 11.6, down from 13.0, and the flatbed ratio slipped from 97.1 in May to 66.8 last month.
Ken Adamo, chief of analytics at DAT said that the number of trucks posted to the DAT load board network increased significantly in June. He also mentioned that the typical seasonal decline in contract and spot rates from now to Thanksgiving looks less likely in 2021.
Truckload rates usually drop after the July 4. In some cases, reefer carriers will shift to moving dry van and other types of freight, which could provide relief to retailers seeking transportation services for end-of-year holiday goods.
Between July 4 and Thanksgiving, truckload volumes typically decline an average of 21%, which translates to reefer carriers hauling 7,300 fewer truckloads per week by the end of November.
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