Freight Rates See Predictable Dip in January 2023

A new year, a new slow season! As to be expected when the holiday season ends, demand for deliveries across hundreds of miles have started to decline. Add in the lower amount of agriculture harvested within the United States, and the supply and demand equation is sure to shift. DAT Freight & Analytics has the numbers!

January 2023 Numbers

• Dry van decreased two cents to $2.39 per mile.
• Flatbed fell two cents per mile to a rate of $2.75.
• Reefer decreased by four cents to $2.79.
• Average decreased by roughly two cents; $2.64 per mile.

Reefer having the strongest decrease is to be expected; with few crops to be delivered during the winter months compared to summer and autumn, this is an expected trend that was bucked at the start of the year prior due to unique circumstances.

The question that remains is what the freight rates will do next month: for February 2022, they went in every direction.

As global supply chains slowly but surely begin to heal, however, more materials and finished goods will need to be delivered by truck, causing an increase in the revenue per mile. While we have been hearing news about it slowly recovering over time from the trough in November 2021 when California ports had backlogs of unprecedented magnitude.

Conclusion

Truckers who have made entire careers of operating these diesel-powered commercial vehicles have never seen anything like what has happened to the trucking industry since the start of the decade, but all of the data points to things eventually getting back to normal. Just how long that will take, however, is anyone’s guess at this point. We just hope there is not another global event on the scale of COVID-19 that sends the economy and global supply chains into another rut!

If you are in the market for another truck or trailer, new or used, TopMark Funding can help get you the funding you need, regardless of whether your credit is excellent, good, or fair. Read on below for more information on what we can do for you!

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