As the trucking sector lurches into a recovery from a three-year freight recession, the latest statistics show that contract rates increased from June through August while spot rates dropped over the same period, according to the quarterly “U.S. Bank Freight Payment Index – Rates Edition,” produced in collaboration with DAT Freight & Analytics.
By the numbers, contract rates moved higher over that span, rising from $2.30 per mile in June to $2.38 in July and $2.39 in August. But dry van spot rates decreased from $2.38 per mile in June to $2.35 in July and $2.17 in August. And by August, contract rates carried a premium of roughly $0.22 per mile over spot freight.
Fuel costs also played a growing role in overall transportation spending, the report found. Average fuel surcharge rates increased from $0.62 per mile in June to $0.70 in August, elevating total freight costs even as spot linehaul pricing softened.
“Fuel costs are increasing while linehaul pricing is softening, making it important for transportation teams to closely analyze the components of their freight spend,” said Jeff Pape, head of transportation for U.S. Bank Corporate Payment Systems.
The report is the latest reflection of a sector that is struggling to define a normal plateau, as it is squeezed between contrasting forces such as rebounding freight rates, soft demand, spiraling diesel prices, and restricted carrying capacity hindered by a dwindling roster of drivers.
“Fuel made up about 21% of the per-mile broker-to-shipper spot rate on dry van loads in June,” said Patrick Pretorius, General Manager Shipper Segment, DAT. “By August, it was 24%, and diesel is trending higher into the fall. Higher fuel costs push smaller, thinner-margin carriers out of the market, which adds to an already shrinking driver pool. Shippers who’ve spent two years squeezing rate per mile would do well to shift focus to consolidation and network planning, as the market is tightening from two directions at once.”
