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Spot Rates Surge 40-70% Above Contract Levels as Shippers Struggle With Infrequent Lanes

Spot freight rates are commanding premiums of 40% to 70% above contracted rates as shippers face growing challenges with infrequent shipments, according to RXO's national account sales leadership. The company has identified the proliferation of low-frequency lanes—moving fewer than 5 to 20 times annually—as the primary stress point in shipper networks. Contract rates locked for occasional lanes often go unexecuted when trucks are finally needed, rendering agreements unenforceable. RXO recommends shippers restructure award strategies by distributing primary allocations across multiple carriers rather than consolidating volume with single partners. Some shippers are exploring proactive rate increases to secure greater carrier commitment, though such moves require firm service expectations in return. The company continues investing in automated spot pricing models to navigate market volatility.