A guide to freight trucking rates in 2024

Trucking rates are often an unpredictable element of freight transportation. Because they are directly influenced by the market, trucking rates can be considered a reliable barometer of broader economic conditions. In times of economic prosperity, the surge in consumer spending propels freight demand, driving up rates as capacity becomes strained. Conversely, during economic downturns, reduced consumer spending can lead to overcapacity, prompting carriers to adjust their pricing strategies. 

In this guide, we’ll explore everything shippers need to know about trucking rates. As the soft freight market persists, shippers are seeing new opportunities to lock in lower rates and eliminate unnecessary trucking expenses. Shippers can achieve complete visibility into their carrier selection process and secure competitive rates by leveraging a transportation management system (TMS) and other digital logistics solutions.  

What is the average trucking rate in 2024 so far?

Trucking rates are the prices that carriers charge to transport freight from one location to another. They depend on various factors, such as freight supply and demand, fuel costs, distance, type of cargo, and seasonality. Carriers typically list trucking rates as “per mile,” so it’s important for shippers to know the distance between their starting point and delivery destination to calculate an accurate estimate. 

The type of truck needed to carry the load is equally important. Dry vans, reefers, and flatbeds all have different benchmarks, so shippers need to consider which type they need to get the most bang for their buck. 

Average dry van trucking rate

Dry vans are what most people imagine when thinking of freight trucks. They are used to transport dry goods in a non-temperature controlled trailer.  As of February 2024, the average spot rate for a dry van was $2.10 per mile, or $2.46 per mile as a contract rate.

Average flatbed trucking rate

Flatbed freight trucks are flat, exposed trailers ideal for transporting large, heavy, or irregularly shaped loads that don’t need to be enclosed or don’t fit in the confines of a traditional enclosed dry van.  As of February 2024, the average spot rate for a flatbed truck was $2.48, or $3.07 per mile as a contract rate.

Average reefer trucking rate

Refrigerated trucks, also called reefers, are climate-controlled vehicles often used to transport produce, pharmaceuticals, and beauty products. Maintaining a set temperature means that reefers typically have higher per mile rates.  As of February 2024, the average spot rate for a refrigerated truck was $2.46 per mile, or $2.80 per mile as a contract rate.

What is influencing current trucking rates?

National average trucking rates are constantly fluctuating, so it’s important for carriers to keep a close eye on how the market evolves as well as understand the factors that can cause these shifts. 

Spot market rates are subject to change in real time, depending on freight supply and demand. An increase in rates may be driven by a number of persistent, industry-wide challenges in trucking, such as driver shortage, capacity constraints, and rising operational costs. Spot rates are typically lower than the contract rates, which are negotiated between shippers and carriers for longer-term agreements. While contract rates are also influenced by economic outlook, freight volumes, truck utilization, and inflation, they are typically more consistent. Shippers can take advantage of contract rates to avoid market volatility and ensure they have capacity available at a stable rate when they need it.

While rates normally dip in Q1 due to seasonal headwinds, we’ve seen a counter-seasonal increase in rates for van and flatbed, indicating that the truckload market has already passed the bottom. Seasonality and adverse weather conditions, in particular, have increased spot rates in recent months. 

LTL freight market sees little disruption following Yellow’s exit 

On the LTL front, Yellow’s shutdown last summer brought uncertainty to the market, as volume was set to be absorbed by competitors. Overall, there was little disruption thanks to excess supply in the LTL market.

A majority of Yellow’s volume appears to have been dispersed evenly among carriers, as no one’s market share increased substantially over others. Due to Yellow’s bankruptcy, LTL carriers’ tonnage is down less than the market. Despite the volume sharing, LTL carriers still have varying degrees of excess capacity available, ranging from 5-20%​. 

LTL carriers remain price-disciplined despite reduced tonnage levels—and their revenue has stabilized due to less demand and more competitive pricing. When we analyzed contractual renewals, we found the rate to be in the 3-7% range, and that range is set to increase by the same amount of percentage points throughout 2024.

Stabilizing economic activity

After a few years of pandemic-driven demand highs and inflation, the freight market is beginning to stabilize. The latest core inflation rate, which excludes food and energy, measured 3.9% annually in December 2023—a slight decrease from 4% in November. 

Following a busy holiday shopping season, consumer spending remains resilient and inventories are normalizing. Spending on goods rose 0.9% in Q4 2023, 3.5% higher than in Q4 2022. The growth was driven by durable goods, where spending rose 6.1% year over year. U.S. containerized imports have also increased: Despite disruptions in the Panama and Suez Canal—and seasonal headwinds that typically cause imports to fall in Q4—imports rose 0.4% in December 2023 and were 9.2% higher year over year.

For further reading on current market conditions, check out Uber Freight’s Q1 Market Update. Shippers can learn more about the factors affecting trucking rates and immediate steps they can take to prepare for Q1 and beyond.

What factors go into the freight rate calculation

Freight trucking rates are meticulously calculated through a dynamic process that accounts for a number of factors. These variables work together to create a comprehensive pricing structure that accurately reflects the complexities of modern freight transportation.

Distance

Initially, the distance between the origin and destination serves as a foundational parameter, influencing the baseline cost due to fuel consumption, driver wages, and vehicle maintenance. Longer distances often result in higher rates due to increased fuel, maintenance, and labor costs associated with longer journeys.

Weight or volume

The weight or volume of the cargo being transported directly impacts the operational costs of transporting goods. Heavier loads necessitate more fuel consumption, increased wear and tear on the vehicle, and potential limitations on the amount of cargo that can be transported in a single trip, all of which contribute to higher rates to cover these additional expenses. Larger, bulkier items may occupy a significant amount of space, potentially limiting the overall capacity for other shipments and affecting the carrier’s ability to optimize their routes.

Freight class or type

The type of cargo being shipped and its classification according to industry standards (such as the National Motor Freight Classification) also play a role in rate determination. Different types of cargo have varying levels of difficulty in handling, potential for damage, and industry-specific requirements, which can affect pricing.

Other elements, including equipment, delivery urgency, prevailing fuel prices, tolls, and any supplementary services required, can also impact rates. Uber Freight’s algorithm adjusts in real time to fluctuations in the market, allowing shippers to access current rates they can lock in immediately—without risk of fluctuations down the line.

Uber Freight’s pricing algorithm accounts for factors like the day of the week, time of day, weather, and even seasonality. We also make sure to consider how quickly loads are being booked. If more loads are booked than normal, prices may decrease. If fewer loads are being booked than normal, prices may increase. Learn more about how Uber Freight’s pricing works.

How to estimate freight rates

Using the factors that affect freight trucking rates, shippers can estimate how much it will cost to deliver a specific load. 

1. Shippers should compile comprehensive details about the shipment, including the origin and destination addresses, dimensions, weight, and any special requirements or handling instructions.
2. Using the origin and destination addresses, shippers can estimate the mileage of the shipment. For a more accurate estimation, shippers should use precise mapping tools or software.
3. Paying close attention to any specific handling requirements, shippers can identify the most suitable type of equipment for the cargo, such as dry van, flatbed, or reefer. Different types have varying rate structures, with reefers often being the most costly.
4. Using a current average “per mile” rate for the region of shipment, shippers can estimate the overall cost to ship the goods from point A to point B. Because rates are fluctuating in real time, shippers should keep a close eye on how trends might affect their estimate.

For best results estimating a trucking rate, shippers can request and compare quotes from different brokerages and carriers.

Shippers looking for immediate information and results can leverage Uber Freight’s instant quote tool, which accurately calculates rates based on type of shipment and pickup and dropoff zip codes. The quote you receive is based on up-to-date market trends.  With our freight shipping services on Shipper Platform, you can lock in that rate instantly. Unlike traditional load-booking processes, no changes can be made to the rate once you secure it—the rate you book is the rate you pay.

Tips for getting the best trucking rate

Securing competitive trucking rates is crucial for shippers of all sizes to keep costs down and protect their bottom line. Digital tools can help businesses find the best rates, regardless of shipment type. Using Uber Freight’s Shipper Platform or TMS, shippers can access rates from multiple carriers, lock them in ahead of time, and build fruitful, long-standing relationships with their carrier partners and our logistics experts.

Plan ahead

Shippers should plan in advance to gain additional flexibility in rates and carriers. Last-minute shipments can lead to rush fees and limited carrier availability, potentially driving up costs. By planning ahead, you can explore different carrier options, negotiate effectively, and secure a better rate.

Using Uber Freight’s lane explorer tool, shippers can take a more proactive, strategic approach to their transportation process. It allows shippers to lock in rates up to two weeks in advance. They can even see rates across a 14-day window to select the best possible carrier for their shipment.

Explore multiple options

By comparing offers from different providers, shippers can gauge the market rate and be more selective. While the lowest quote might not always be the best option, shippers have the flexibility to evaluate other important variables like carrier reputation, service quality, and additional services provided. Weighing costs and benefits, shippers can choose the rate that offers them the best bang for their buck depending on the shipment details.

As one of the largest freight networks in the country, Uber Freight offers shippers access to multiple, instant carrier spot and contract quotes as part of our suite of shipper solutions, including our TMS. Shippers can choose from our network of carriers of all sizes across the country in our Shipper Platform or TMS—or collaborate with our team of experts to find the right fit for them. 

Build relationships

Building strong relationships with carriers can lead to more favorable rates over time. Regular shipping needs or a consistent volume of freight can indicate to carriers that you are a valued customer. Open communication, transparent expectations, and reliable payments help establish trust and loyalty with your shipping partners.

Uber Freight’s robust network of carriers on our platform wasn’t built overnight. Our team of experts has long-standing relationships with a variety of carriers. By deploying our managed transportation services, Uber Freight’s team becomes yours, allowing you access to transparent carrier rates.

Small and mid-sized businesses can also take advantage of Uber Freight’s network. Our rate lock tool allows shippers using the Shipper Platform to secure the same transparent rates as larger enterprises with a short-term commitment and the flexibility they need.

Finding the best rates with Uber Freight

Ready to take advantage of transparent carrier rates to drive your business forward? Uber Freight’s offerings connect you with a vast network of carriers, ensuring access to up front trucking rates that align with your budget. With accurate, real-time quotes and the power to compare options, Uber Freight empowers you to make informed decisions, optimize your logistics, and secure the best rates for your shipments. Sign up today to get an instant quote.