Tight Trucking Capacity Pushes Rates Higher Even as Freight Volumes Fall

“Spot rates moving ahead of contract rates have historically signaled a tightening market, but we haven’t seen a capacity-driven market quite like this one,” said DAT's Dean Croke.

Truck freight volumes may not be particularly strong, but increasingly tight capacity is pushing freight rates higher and creating more favorable conditions for carriers, according to new reports from industry research sources.

FTR’s Trucking Conditions Index remained firmly positive in June at 17.1, down from a record 20.4 in May. Meanwhile, July data from DAT Freight & Analytics showed record June-to-July gains in contract rates for dry van and refrigerated freight — even as freight volumes declined.

The combination points to a freight market where constrained capacity is playing a larger role in rate increases than growing freight demand.

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