DAT: Truckload volumes dip ahead of holidays

Reefer, dry van, and flatbed truckload volumes all declined in September, indicating a muted shipping season ahead of the holidays, according to DAT Freight & Analytics.

The company’s Truckload Volume Index (TVI) for refrigerated freight fell 9.7% from August to 168.

The van TVI was 228, down 13.7% compared to an unusually active stretch last month, but in line with prior years. It was 2.9% lower versus September 2021, and 1.8% higher than September 2020. The flatbed TVI declined 10.5% to 231.

Peak season plateau

The national average spot van rate fell 7 cents to $2.45 per mile, declining from August to September for the first time since 2015, DAT said. The average reefer rate was down 5 cents to $2.84 per mile, and the average flatbed rate dropped 14 cents to $3.64 per mile.

Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT bases its rate analysis on $137 billion in annualized freight transactions.

“The usual peak period for van freight looks more like a mesa,” said Ken Adamo, DAT chief of analytics. “The month-over-month decline in September truckload volume suggests that many retailers already have inventory in position, have tempered their expectations for the holidays, or some combination of the two.”

Load-to-truck ratios decline

The national average van load-to-truck ratio was 3.5, unchanged from August, meaning there were 3.5 available loads for every van posted to the DAT One load board network. The reefer load-to-truck ratio was 6.3, down from 7.1, and the flatbed ratio fell to 13.3, down from 14.1 in August.

Demand for trucks increased ahead of Hurricane Ian making landfall on Sept. 28. The number of loads posted to the DAT One network headed to distribution hubs in the Southeast rose 20% during the week before the storm’s arrival.

Contract rates dipped

The national average shipper-to-broker contract van rate declined for the fourth consecutive month, falling 3 cents to $3.09 a mile. The average contract reefer rate was $3.40 a mile last month, unchanged from August, while the average contract rate for flatbed freight dropped 5 cents to $3.64 a mile.