Contract Truck Rates Top Spot by 22 Cents as Fuel Costs Rise
Contract dry van freight rates ended August 22 cents per mile above spot rates, a reversal from June.
Contract dry van rates ended August 22 cents per mile above spot freight rates, according to the October U.S. Bank Freight Payment Index. This reverses a June deficit where spot linehaul led contract by 8 cents, signaling a significant shift in trucking market dynamics.
The data, produced by U.S. Bank with DAT Freight & Analytics, tracks rates from June through August 2024. The complete figures show a clear divergence.
| Metric | June | July | August |
|---|---|---|---|
| Dry Van Spot Rate (per mile) | $2.38 | $2.35 | $2.17 |
| Dry Van Contract Rate (per mile) | $2.30 | $2.38 | $2.39 |
When fuel surcharges are included, the total spot rate fell to $2.87 per mile in August, while the total contract rate rose to $3.09. Contract linehaul pricing has risen every month since April.
Fuel costs rise while linehaul pricing diverges
Fuel is becoming a larger component of the spot rate. It comprised roughly 21% of the per-mile broker-to-shipper spot rate on dry van loads in June. By August, that share had grown to 24% as diesel prices trended higher into the fall.
Fuel surcharges rose 13% to $0.70 per mile in August from $0.62 in July. Jeff Pape, head of transportation for U.S. Bank Corporate Payment Systems, noted the pressure this creates. "Fuel costs are increasing while linehaul pricing is softening," he said.
Load volumes decline across both contract and spot markets
Demand softened in August. Spot loads in the index fell 3.2% to 1,264,897 from 1,306,819 in July. Contract loads also declined, dropping 1.3% to 740,249 from 750,371.
Compared to August of the previous year, contract loads were down 27.7%. Spot loads were down 5.7% from the prior year's level.
Market tightening from rising costs and shrinking capacity
Higher fuel costs are pushing thinner-margin carriers out of the market. This compounds an already shrinking driver pool, reducing overall trucking capacity from two directions at once.
Despite recent softness, linehaul rates remain significantly higher than a year ago. Spot linehaul in August was up 35.6% from August of the previous year, when it averaged $1.60 per mile. Contract linehaul was up 20.1% from $1.99 per mile a year prior.
Analysts suggest shippers who spent two years squeezing rate per mile should now shift focus to consolidation and network planning. Transportation teams should closely analyze the components of their freight spend as fuel costs rise and linehaul pricing softens.
