In today's complex and dynamic global economy, freight markets play a pivotal role in connecting producers, consumers, and various economic entities. The efficiency and performance of freight markets directly impact supply chain stability and cost-effectiveness, thereby influencing overall economic health.
Understanding the DAT Truckload Volume Index (TVI)
To accurately monitor and analyze freight market dynamics, DAT Freight & Analytics developed the Truckload Volume Index (TVI), a comprehensive metric designed to reflect supply-demand conditions in the U.S. truck freight market.
Methodology and Calculation
The DAT TVI measures changes in U.S. truck freight volumes, using January 2015 as its baseline (100). A TVI reading of 200 indicates current volumes are double those of the baseline period. The index draws from DAT's extensive freight data network, incorporating information from brokers, carriers, and shippers.
DAT employs rigorous quality controls including:
- Data cleansing and validation to eliminate errors
- Weighted data aggregation reflecting market significance
- Seasonal adjustments to remove cyclical variations
- Periodic benchmark updates to account for structural changes
Market Segmentation
The TVI tracks three primary equipment types:
- Dry Van: For packaged dry goods (food, beverages, consumer products)
- Reefer: For temperature-controlled shipments (perishables, pharmaceuticals)
- Flatbed: For oversized/heavy cargo (construction materials, machinery)
January Market Analysis: Weather-Driven Volatility
January's freight market experienced significant fluctuations due to winter storms, according to the latest TVI data:
Volume Increases Across Equipment Types
| Equipment Type | TVI | Month-over-Month | Year-over-Year |
|---|---|---|---|
| Dry Van | 250 | +11% | +6% |
| Reefer | 206 | +14% | +1% |
| Flatbed | 232 | +11% | +6% |
Capacity Constraints Intensify
Truck-to-load ratios reached:
- 2.7 for dry vans (vs. 1.9 in December)
- 4.1 for reefers (vs. 2.6 in December)
- 8.3 for flatbeds (vs. 5.1 in December)
Spot Rate Increases
| Equipment Type | Rate/Mile | Monthly Change |
|---|---|---|
| Dry Van | $2.14 | +$0.04 |
| Reefer | $2.57 | +$0.10 |
| Flatbed | $2.47 | +$0.06 |
Market Outlook and Strategic Implications
DAT Chief Analyst Ken Adamo noted: "Winter weather amplified truck demand as shippers handled holiday returns and spring retail goods while carrier rejection rates climbed. However, this doesn't signal sustained freight growth. Barring disruptions, we anticipate demand aligning with seasonal patterns."
Adamo compared current conditions to 2019's market trajectory, observing similar patterns of prolonged rate softness across equipment types, particularly for flatbeds.
Strategic Recommendations
For Shippers:
- Monitor TVI trends for market intelligence
- Implement flexible routing strategies
- Strengthen carrier relationships
For Carriers:
- Optimize pricing based on real-time TVI data
- Improve asset utilization through route optimization
- Invest in operational efficiency technologies
Future Market Developments
The freight sector faces several transformative trends:
- Accelerated digitalization (IoT, AI, blockchain applications)
- Growing emphasis on sustainability (alternative fuels, emission reduction)
- Advancements in autonomous transportation technologies
- Increasing global competition in logistics services
Historical TVI Data
| Year | Month | Dry Van | Reefer | Flatbed |
|---|---|---|---|---|
| 2015 | 1 | 100 | 100 | 100 |
| 2024 | 1 | 250 | 206 | 232 |