An Update on U.S. Freight Rates Per Mile

If you work in logistics, staying on top of market trends isn't just a good idea—it's essential for success. The last few years have seen a whirlwind of change, and understanding the current landscape of rates per mile is crucial for shippers, carriers, and everyone in between. At Eagle Logistics, we're dedicated to helping you navigate these shifts with confidence.

So, what's the latest? Let's take a look at the current state of the U.S. freight market and break down the numbers that matter most.

Current Market Snapshot: A Mixed Bag of Trends

The logistics industry has recently entered what many refer to as a “freight recession.” Carriers face high operating costs, and capacity is widely available, making it harder to secure profitable rates.

This has created a challenging environment, particularly for spot market rates, which have seen significant pressure. However, recent data from industry sources like DAT and Uber Freight indicates some notable trends.

• Dry Van Rates: National average spot rates for dry vans have hovered around $2.06 per mile. While this is down from peak years, it reflects a market that is stabilizing, with some regions seeing minor upticks.

• Reefer Rates: Refrigerated freight has been more resilient, with average spot rates around $2.35 per mile. These rates can fluctuate seasonally, especially during produce season, but have generally held steady.

• Flatbed Rates: Flatbed spot rates have averaged about $2.61 per mile. This segment often sees more volatility, influenced by industrial and construction demand, but has shown some recent stability.

While these numbers provide a general guide, it's vital to remember that rates vary significantly by lane, time of year, and economic conditions.

Key Factors Driving the Rates

Rates per mile don't exist in a vacuum. Several key factors are currently influencing these prices, and understanding them is key to making informed decisions.

1. Operating Costs: Even as freight rates have softened, the cost of running a trucking business has remained stubbornly high. Expenses like insurance premiums, which have reached a record high of approximately $0.102 per mile, and truck and trailer payments, which have surged by over 8%, continue to squeeze carrier margins. This is a primary reason why many smaller carriers have left the market, leading to a slight tightening of capacity.

2. Load-to-Truck Ratio: The ratio of available loads to available trucks is a direct indicator of market power. While capacity has been abundant, recent drops in the number of active trucking authorities are beginning to shift the balance. When there are fewer trucks for more loads, rates tend to climb.

3. Fuel Prices: Fuel remains one of the largest single expenses for carriers. While prices have seen some stabilization, they can still be unpredictable and have a direct impact on the final rate per mile.

4. Contract vs. Spot Market: The gap between contract and spot rates is a key indicator of market health. When this gap narrows, it suggests a more balanced market. Recently, contract rates have been more stable, with some larger carriers holding the line on renewals, even as the spot market fluctuates.

Why This Matters to You

For shippers, the current environment presents opportunities to lock in favorable contract rates. However, with market dynamics constantly changing, it's crucial to partner with a logistics provider that can offer both strategic advice and agile solutions.

At Eagle Logistics, we believe in providing more than just a truck and a driver. We offer a partnership based on expertise, transparency, and a deep understanding of the market. Our team constantly analyzes these trends to ensure you get the most competitive rates and reliable service, whether you're shipping a single pallet or managing a complex supply chain.

As the industry continues its slow but steady path toward a more balanced future, rely on Eagle Logistics to be your trusted guide. We’re here to help you navigate the road ahead and ensure your freight moves efficiently and affordably.