Van freight rates: how dry van loads are priced

The dry van market

The 53 ft dry van is the most common trailer in US trucking, and dry van freight is the largest truckload market. It carries packaged goods of almost every kind: food and beverages that don't need refrigeration, paper and packaging, household goods, electronics, retail stock, auto parts and much more. Because so much freight fits in a van and so many trucks pull one, the van market is huge, liquid and competitive.

That competition shapes van rates. With many carriers able to haul any given van load, rates tend to sit below specialized equipment like reefers and flatbeds on the same lane. They also respond quickly to changes in demand: when retail and consumer spending rises, van freight rises with it, and when it slows, vans feel it first.

What moves van freight rates

• +Lane direction. Van freight flows out of distribution hubs, ports and manufacturing areas. Loads out of those areas pay more than loads back into them.
• +Retail and consumer demand. Holiday stocking, back-to-school and promotional seasons tighten van capacity.
• +Imports. Busy periods at ports pull vans toward distribution centers near them.
• +Distance. Short van loads pay more per mile, long ones more in total.
• +Fuel. Diesel prices feed into fuel surcharges and carrier costs.
• +Capacity. When carriers leave the market in a slow period, rates eventually firm; when many enter in a strong period, rates soften.

Spot and contract van rates

Van freight moves both on the spot market, load by load, and under contracts, lane by lane for months at a time. Load board companies and freight rate services publish national averages for both, usually weekly or monthly, and the gap between spot and contract van rates is one of the most watched signs of where the truckload market stands. When spot rates rise above contract, the market is tight. When spot sits well below contract, there's more capacity than freight.

We publish market figures only with their source, basis and date. Our truckload spot rates and spot freight rates by major route pages show sourced figures, and our freight market update covers the current direction.

Reading a van posting

Van postings look simple, but the details matter. Check the basis of the rate first: all-in with fuel, or linehaul plus fuel. Then look at what the posting leaves out, because that's where van loads differ most.

• +Live or drop. Drop-and-hook freight saves hours. Live loads and unloads can take most of a day.
• +Weight. Heavy van loads, near legal limits, cost more fuel and limit route choices.
• +Floor-loaded or palletized. Floor-loaded freight can mean hours of loading or a lumper fee.
• +Appointments. Tight warehouse appointments, especially early morning, shape your whole day.
• +Load locks and straps. Some shippers require them; make sure you have them.
• +Food-grade requirements. Some freight needs a clean, odor-free trailer.
• +Extra stops. Retail and distribution loads often have more than one.

Those details turn the same posted rate into very different loads. A drop-and-hook load at $2.20 a mile can beat a live-unload, floor-loaded load at $2.50.

Judging a van load from your costs

The van rate that matters is the one that pays your truck. Work out your cost per mile from a real month: all costs divided by all miles, loaded and empty. Your floor is that plus your margin. Then judge each van load on its all-in rate per mile, the pay divided by loaded plus empty miles, against that floor.

In this EXAMPLE, load A pays more in total and per loaded mile, but load B pays more per mile driven and takes hours less. For most trucks, B is the better load. The load profitability calculator shows net and net per hour for any load, and our guide to freight rate per mile explains why the all-in number is the one to use.

Van rates by length of haul

Van loads are offered at every distance, from short local runs to coast-to-coast hauls, and the rate per mile changes a lot with length. Short van loads, under a couple of hundred miles, often pay a high rate per mile because the fixed time at each end, like checking in, waiting and loading, takes up much of the day. Long hauls pay less per mile but more in total, and they keep the truck moving with fewer docks.

Regional van work, roughly a day's drive each way, sits in between and suits carriers who want to be home more often. Whatever the length, compare loads by what they earn per day and what they leave after costs, not by rate per mile alone. A day of two short van loads can beat one long one, or not, depending on the docks.

Drop and hook vs live load

One of the biggest differences between van loads is whether the trailer is dropped or loaded live. With drop and hook, the carrier leaves an empty trailer and picks up a loaded one, often in minutes. With a live load, the truck waits at the dock while the shipper loads it, which can take one hour or six. The same happens at delivery.

Drop-and-hook freight is common with large shippers and distribution centers, and it's worth a lot to a carrier, because hours not spent at docks are hours the truck can drive or the driver can rest. When two van loads pay about the same, prefer the one with drops. When a live load pays more, check whether the extra covers the waiting, and make sure detention terms are on the rate confirmation in case it runs long.

Van equipment that opens more loads

Most van freight just needs a clean, dry 53 ft trailer in good condition. A few extras open more loads. Load locks or straps are often required to secure freight. A food-grade trailer, clean and odor-free, is needed for many food and beverage loads. Some shippers want trailers of a certain age or with specific door types. Ask about requirements before you accept a load, because showing up with the wrong trailer can mean a refused load and a long day for nothing.

Van rates through the year

Van freight has a rough yearly rhythm, though it varies by year and region. Freight often slows after the winter holidays, picks up into spring, and builds through summer and fall toward holiday retail. Produce season pulls reefers off some lanes, which can tighten van capacity indirectly. Quarter-end pushes and holidays create short spikes. Our freight seasonality calendar covers the usual peaks.

For a van carrier, knowing these patterns helps with planning: positioning near strong outbound markets before busy periods, building relationships in slow ones, and pricing up when capacity is tight.

Where van freight comes from

Van loads come from every kind of shipper, but a few sources dominate. Distribution centers for retailers and grocers ship and receive huge volumes, often with drop trailers and strict appointments. Manufacturers ship finished goods and receive parts and packaging. Ports and the warehouses around them push imported goods inland. Each has its own rhythm, and learning the ones on your lanes helps you find loads and avoid bad docks.

Most small van carriers book this freight through brokers, on load boards and by building relationships with brokers who move van freight on their lanes. Direct relationships with shippers usually come later, once a carrier has a record on a lane.

Costs that are specific to van work

Van carriers face a few costs that other equipment types see less often. Lumper fees at grocery and retail warehouses can run high, and whether the broker reimburses them depends on the rate confirmation. Long waits at busy distribution centers eat hours. Trailer damage from forklifts and dock plates happens, and someone has to pay for it. Washouts may be required between loads for food-grade freight.

Count those in when you judge a van rate. A load to a warehouse known for long waits and lumper charges is worth less than its rate suggests, unless detention and lumper reimbursement are clearly written on the rate confirmation. The accessorial charges calculator shows what those extras add up to on a load.

Getting better van rates

• +Counter every load from your floor, with a reason. See how to negotiate freight rates.
• +Cut empty miles by planning the next load before you deliver.
• +Prefer drop-and-hook when rates are close; the hours saved are worth money.
• +Build lanes out of strong van markets, with brokers who know your truck.
• +Claim detention on slow live loads and unloads.
• +Look at urgent loads. Time-sensitive van freight pays more; see expedited freight rates.