August Freight Rates Cool After July Peak

Market Loses Momentum, but Remains Resilient

After a strong peak in July, the freight market took a predictable step back in August. National average van rates slipped seven cents to $2.26 per mile, a 3.0% decrease that brings rates back to June levels. This cooling trend was mirrored in the flatbed sector, which saw a 2.2% dip as demand for construction materials typically wanes toward the end of summer.

While any decrease can cause concern, it's important to view this in context. The August slowdown follows a similar pattern observed last year, suggesting typical seasonality is at play. Furthermore, van rates remain comfortably above 2024 levels for the same period, indicating solid underlying fundamentals.

Economic Headwinds on the Horizon

The stability of the reefer market, which remained virtually unchanged from July, points to a robust produce season. A slight decrease in the average length of haul for refrigerated shipments suggests a greater mix of produce from regions like Colorado and Utah entering the national supply chain.

However, carriers and brokers are watching the horizon closely. Recent news of impending tariffs on a new wave of imported goods is expected to create a ripple effect, potentially dampening domestic freight volumes in the fourth quarter. As companies adjust their supply chain strategies to mitigate tariff impacts, we could see shifts in demand and capacity. This August data provides a crucial baseline as the market braces for potential volatility ahead.