The U.S. truck freight market showed signs of stagnation in April, with both volumes and spot rates largely unchanged from March levels, according to the latest DAT Truckload Volume Index (TVI) released by DAT Freight & Analytics.
Key Market Indicators Show Mixed Performance
The April data reveals a mixed picture across different truck types:
- Dry Van: TVI at 287, down 0.3% from March but up 1% year-over-year
- Reefer: TVI at 222, down 3.1% monthly but up 4% annually
- Flatbed: TVI at 332, showing 2.5% monthly and 5% yearly growth
Spot rates remained largely stagnant:
- Dry van at $1.96 per mile (down $0.03)
- Reefer unchanged at $2.27 per mile
- Flatbed up $0.04 to $2.57 per mile
The gap between contract and spot rates widened for the fourth consecutive month, with dry van, reefer and flatbed spreads reaching $0.44, $0.47 and $0.51 per mile respectively.
Economic Headwinds Freeze Market Activity
Ken Adamo, Chief Analyst at DAT Freight & Analytics, described the market as "frozen," noting that typical seasonal patterns failed to materialize due to broader economic factors.
"April is normally strong for agricultural and construction materials, but tariff uncertainties and early inventory releases have suppressed freight volume growth compared to previous years," Adamo explained.
Adamo expressed surprise at the market's inactivity, particularly in contract rates: "No one has really experienced such a dead period, especially in contract markets which are completely flat."
Potential Signs of Recovery Ahead
Some positive indicators emerged in late April:
- Improved U.S.-China trade relations
- Seasonal factors beginning to influence some markets
- Upcoming Commercial Vehicle Safety Alliance inspections (May 13-15) historically boost rates
Adamo noted that reefer transportation faced particular challenges this spring, with multiple delays requiring catch-up as this sector remains most sensitive to seasonal patterns.
Market Outlook Remains Uncertain
Looking ahead to May, Adamo cautioned that predictions remain difficult:
"Bonded warehouses and free trade zones are at capacity, which could lead to sudden freight surges as inventories clear," he said. "All eyes are on ocean bill of lading creation to gauge near-term market direction."
The analyst highlighted particular challenges in Southern California, where drivers have been reluctant to accept loads due to limited backhaul opportunities.
Adamo concluded with a sobering observation: "If contract rates remain unchanged through August, they'll have been flat for two full years. While spot rates may show seasonal fluctuations, overall market performance remains remarkably flat."