RXO reports truckload spot rates at four-year high in Q2

RXO (NYSE: RXO) released an update to its proprietary Curve truckload market forecast, showing that spot rates, excluding fuel, rose 32.4% year-over-year in the second quarter, up from 16.5% in the first quarter. The company said this marks the ninth consecutive inflationary reading and the largest sequential increase since the second quarter of 2021.

The Curve index reached its highest level in more than four years, according to the company's statement. Through Aug. 21, the index is on pace to finish the third quarter above the second-quarter level.

RXO attributed the rate increases to a reduction in carrier capacity driven by federal regulation enforcement, which has created a supply imbalance relative to demand.

Corey Klujsza, vice president of pricing and procurement at RXO, said, "In the second quarter, truckload spot rates rose at an even faster pace than in the first quarter and consistently outpaced contract rates, which put increased strain on shippers' routing guides."

Jared Weisfeld, chief strategy officer at RXO, noted that carrier operating costs are nearly 30% higher, excluding fuel, compared to the previous market peak. "While rising freight rates have helped carriers offset some of their own inflationary pressures, profitability is still challenged," Weisfeld said. "Any sustained increase in shipping volumes will further strain an already diminished supply base and add more inflationary pressure on rates."

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