The latest quarterly U.S. Bank Freight Payment Index – Rates Edition showed contract and spot rates following different paths from June through August. Produced in collaboration with DAT Freight & Analytics, the report showed contract rates increasing while spot rates moderated from their June level.
Dry van spot rates decreased from $2.38 per mile in June to $2.35 in July and $2.17 in August. Contract rates moved higher during the same period, rising from $2.30 per mile in June to $2.38 in July and $2.39 in August. 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. 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,” Jeff Pape, head of transportation for U.S. Bank Corporate Payment Systems, said.
“Fuel made up about 21% of the per-mile broker-to-shipper spot rate on dry van loads in June,” Patrick Pretorius, general manager, shipper segment at DAT, said. “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.”
