Rates

Out of all of our annual surveys and features that we do in Logistics Management (LM), by far my favorite continues to be our Annual Rate Outlook

The November edition of the DAT Truckload Volume Index (TVI), which was recently issued by DAT Freight & Analytics, showed a solid post-Thanksgiving bump in truckload freight volumes compared to previous Novembers.  

November’s shipment reading, at 1.094, was down 8.9% annually, less steep than October’s 9.5% annual decrease, and November expenditures, at 3.331, were off 25.6% annually, topping October’s 23.3% annual decline, while falling 1.3%, from October to November.

For August, the most recent month for which data is available, the SCI reading, at -2.7, registered a negative reading for the first time since October 2022. This came on the heels of a 1.6 July reading, which was well below June’s 7.9.

The October edition of the ITS Logistics US Port/Rail Ramp Freight Index, which was recently issued by Reno, Nev.-based ITS Logistics, a 3PL focused on drayage and intermodal services, pointed to ports running smoothly and not seeing any major interruptions, coupled with an observation that the trucking market is seeing more capacity leaving the market than entering it.

The new edition of the TD Cowen/AFS Freight Index, which was recently released by New York-based investment firm Cowen Inc. and Shreveport, La.-based 3PL and freight audit and payment company AFS Logistics LLC, highlighted mixed readings, as well as expectations, for truckload, less-than-truckload (LTL), and parcel activity, from the third quarter to the fourth quarter.

Seasonal trends impacted lower spot market volumes and rates in the September edition of the DAT Truckload Volume Index.

Shipping bottlenecks, increased costs, and disrupted deliveries could result in shifting transportation of goods from the affected region.

Many of the concerns from earlier this year have dissipated and shippers are beginning to look for lengthier contracts with stable rates

For July, the most recent month for which data is available, the SCI reading came in at 1.6, well below June’s 7.9.

Keeping in line with recently announced rate increases made by its chief rival FedEx, Atlanta-based global freight transportation and logistics services provider UPS this week announced its own 2024 rate increases this week, which are set to go into effect on December 26.

Memphis-based global freight transportation and logistics services provider FedEx announced rate increases today for its FedEx Express, FedEx Freight, and FedEx Ground subsidiaries, which will take effect on January 1, 2024. The company also said that, effective September 4, it will officially rebrand “peak” surcharges to “demand” surcharges,

For June, the most recent month for which data is available, the TCI came in at-6.29, losing ground from May’s -3.75 reading.

Truckload was the only segment to see a gain for shipment volumes, up 1.9% sequentially, and down 1.4% annually. LTL was off 2.8% sequentially and 5.8% annually, with intermodal down 2.4% sequentially and 16.4% annually. Other modes were down 0.2% sequentially and 11.5% annually.

The van TVI was down 7.0% compared to June, to 226, and down 3.0% annually, the flatbed TVI decreased 12.8% compared to June, to 238, and was up 3.5% annually, and the reefer TVI was down 3.4% compared to June, to 169 and up 1.2% annually (DAT said that even with each TVI reading declining, the reefer and TVI numbers marked the highest on record for July.