Refrigerated spot truckload rates dropped to a two-and-half-year low in March, according to DAT Freight & Analytics of Beaverton, OR.
While the DAT Truckload Volume Index increased for all three equipment types (van, flatbed and refrigerated) for the first time since July 2022, national average spot van and refrigerated (“reefer”) rates plunged to in March, DAT Freight & Analytics reported in a news release.
According to the report, the refrigerated truckload volume index climbed 8% higher than in February. Despite higher freight volumes, low rates in March capped a challenging first quarter of 2023 for most truckload carriers and freight brokers, according to the release.
“While shippers are taking advantage of the current situation to stabilize their carrier base and bring their contract rates back in line, the spread between spot and contract rates was historically large—59 cents a mile for van freight, 57 cents for reefers and 66 cents for flatbed freight,” Ken Adamo, DAT chief of analytics, said in the release. “We expect spot rates to remain at ‘touch-bottom’ levels until retailers start replenishing inventory for the end-of-the-year holidays.”
The report said national average spot van and reefer rates fell to their lowest points since July 2020.
The spot reefer rate fell 9 cents to $2.50 a mile, the release said. That’s 95 cents less than in March 2022. Meanwhile, DAT reported the contract rate averaged $3.07 a mile, a 9-cent decline month over month.
Load-to-truck ratios reflect supply and demand on the spot market and the pricing environment for truckload freight, and DAT reported that the statistic showed demand softened for refrigerated trucks compared with a year ago.
The national average load-to-truck ratio for refrigerated trucks averaged 3.0, meaning there were three loads for every van posted to the DAT One marketplace. That compares with 3.8 in February and 8.4 in March 2022, the release said.
The national average price of on-highway diesel in March was down 11 cents compared to February, the release said. Surcharge amounts fell by 4 cents to 49 cents a mile for van freight, 54 cents for reefers and 59 cents for flatbeds.