Chart of the Week: Van Contract Base Rate per Mile Initial, Van Outbound Tender Reject Index, Truckstop Average Van Spot Rate per Mile – USA SONAR: VCRPM1.USA, VOTRI.USA, TSTOPVRPM.USA
Truckload carriers have continued to struggle to provide consistent coverage through the first quarter of 2021, and in return costs have increased. This relationship seems counterintuitive at a base level — why would you spend more to get less? — but it is a common result of demand exceeding supply in just about any industry.
National van truckload tender rejection rates — the percent of electronic requests for capacity declined by carriers — have exceeded 20% since early August outside of a single day in February. The truckload market appeared to be on a path toward stability with rejection rates sliding slowly through the first month of the year before winter storms disrupted trucking networks and shipper production cycles. The result has been rejection rates consistently above 25% since Feb. 18.
With decreasing carrier compliance come increasing transportation rates. The average van truckload spot rate increased 20% from the beginning to the end of February, according to Truckstop.com. Spot rates are much more volatile and represent roughly 10%-20% of the for-hire truckload market freight volume. Most of the freight moves under a more consistent pricing structure or “contract” rates.
The overall average cost of a dry van truckload move…
