In the latest sign of recovery from a three-year recession in the over-the-road freight sector, truck freight rates rose considerably in April and May, according to the latest quarterly U.S. Bank Freight Payment Index – Rates Edition, which is produced in collaboration with DAT Freight & Analytics.
By the numbers, the data revealed that spot rates were up 31.29% in May compared with a year earlier, reflecting a significant acceleration over the past several months. Contract rates increased 9% year over year.
Measured on a mileage basis, spot rates increased from $1.89 per mile in March to $1.95 in April and climbed further to $2.14 in May. Contract rates, meanwhile, moved from $2.09 in March to $2.14 in April and $2.18 in May.
At the same time, shipment activity declined throughout the quarter. Spot volumes fell from approximately 1.36 million in March to 1.11 million in May, while contract volumes dropped from roughly 852,000 to 739,000 (-13.3%), indicating that rate increases occurred alongside softer demand conditions.
“For shippers, the key takeaway is how quickly spot rates have ramped up over the past few months. Even with lower volumes, costs are rising as capacity tightens,” said Jeff Pape, Head of Transportation for U.S. Bank Corporate Payment Systems.
“The figures holding steady point to a lasting shift, rather than a temporary anomaly. Shippers who track the data can adjust their budgets around these higher baselines, while those who don’t may risk planning on outdated cost assumptions,” said Patrick Pretorius, GM, Shipper at DAT Freight & Analytics.
