US spot rates hold steady in November as capacity stays loose
Truckload volumes got a lift after Thanksgiving in November 2023, but load-to-truck ratios hit their lowest November level since 2015, DAT said.
In December 2023, DAT Freight & Analytics reported that a surge in truckload freight after Thanksgiving made November a solid month compared with prior years, even as spot rates barely moved and capacity stayed plentiful.
Volumes
DAT's Truckload Volume Index fell from October for all three equipment types. The van index was 232, down 9.0%. Reefer was 191, down 3.5%, and flatbed was 232, down 11.1%.
Ken Adamo, DAT's chief of analytics, said Thanksgiving and Black Friday came early in the month, leaving almost a full week of shipping after the holiday. "Businesses running leaner inventories compared to the last couple of years are taking advantage of lower transportation rates as they position goods ahead of peak retail shopping," he said.
Ample capacity
"For every 10 carriers that left the market in November, eight new ones came in," Adamo said. He described capacity moving out of long-haul freight, where carriers face spot-rate swings and high diesel costs, toward other work such as regional dedicated operations.
Load-to-truck ratios were the lowest for November since 2015. The van ratio held at 2.1, reefer rose to 3.2 from 2.9, and flatbed fell to 5.5 from 6.3. DAT said low ratios signal weak negotiating power for carriers.
Rates
The national average broker-to-carrier spot van rate was $2.07 a mile, down 2 cents from October. Reefer rose 3 cents to $2.49, and flatbed rose 5 cents to $2.43. Compared with a year earlier, spot rates were down 16 cents for van, 30 cents for reefer and 19 cents for flatbed, reflecting in part lower fuel costs.
Line-haul rates, which subtract a fuel surcharge, rose after five months of declines. Van line-haul was $1.57 a mile, up 2 cents, and reefer was $1.94, up 7 cents. Flatbed was unchanged at $1.83. All three were above November 2019 levels.
Contract van and reefer rates fell for the third straight month. The benchmark contract van rate dropped 3 cents to $2.53, and reefer fell 3 cents to $2.94. Flatbed rose 4 cents to $3.17.
What it meant for carriers
The 46-cent gap between spot and contract van rates was the narrowest since March 2022. With contract rates still falling and load-to-truck ratios at multiyear lows for the month, DAT said pricing power continued to swing toward shippers heading into the end of 2023.