Truckload Spot Rates Rise in May Despite Volume Decline
Event summary
- Truckload spot rates increased in May across all equipment types despite a decline in freight volumes.
- Van, reefer, and flatbed spot rates rose by 22 cents, 24 cents, and 19 cents per mile, respectively.
- The DAT Truckload Volume Index (TVI) fell for all equipment types, with flatbed TVI down 14% from April.
- Spot-contract rate gap narrowed as carriers shifted capacity toward contract freight for fuel surcharge certainty.
- Contract rates saw modest gains, with van rates up 7 cents per mile month over month.
The big picture
The rise in spot rates despite lower freight volumes highlights a tightening capacity supply in the truckload market. Carriers are increasingly shifting toward contract freight to secure fuel surcharge benefits, reducing truck supply on the open market. This dynamic makes the spot market more sensitive to disruptions like regulatory inspections and holiday slowdowns, reflecting broader industry trends of driver shortages and enforcement-driven attrition.
What we're watching
- Capacity Pressure
- How ongoing driver shortages and enforcement actions will affect spot market rates.
- Contract Freight Shift
- Whether carriers can sustain the shift toward contract freight for fuel surcharge benefits.
- Seasonal Demand
- The pace at which seasonal demand for temperature-controlled equipment impacts reefer rates.