Breaking

Contract Rates Widen Gap Over Spot Freight as Capacity Tightens

Contract dry van rates finished August at 22 cents per mile above spot freight, according to the U.S. Bank Freight Payment Index – Rates Edition. The quarterly report, produced with DAT Freight & Analytics, tracks June through August data and represents a significant shift from June, when spot rates briefly exceeded contract pricing. Contract linehaul has gained ground every month since April, reflecting shipper preference for committed capacity as transactional freight absorbs market weakness. Industry observers attribute the widening gap to trucking supply dynamics, with carrier capacity exiting the market faster than freight demand declines. Fuel costs complicate the picture. Fuel now represents 24 percent of dry van broker-to-shipper rates by August, up from 21 percent in June, while diesel prices trend higher into fall. Shippers must separate fuel and linehaul components to understand true pricing pressure, analysts warn.