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Average haul length drops 21% since mid-2024, signaling shift in shipper strategy

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The average length of haul for domestic truckloads has plummeted from roughly 607 miles in June 2024 to just above 500 miles, according to FreightWaves analysis of tender data. That 21% decline, with 11% occurring over the past year alone, shows a steady linear pattern unlike typical freight market swings. This shift appears to reflect how shippers are restructuring their supply chains rather than a temporary market fluctuation. Shorter loads cycle trucks faster, which should theoretically free up capacity. Yet tender rejections remain above 17% at multi-year highs, and spot rates are surging across all three main trailer types. The math does not add up. Intermodal rail service offers the most likely explanation. Railroads have spent the past few years rebuilding capacity lost during the pandemic. Loaded international container volumes are up 11% year-over-year and domestic container volumes are up 14%, according to SONAR data. Intermodal holds a strong cost advantage on longer transcontinental lanes but cannot compete on shorter hauls, so shippers are shifting their longer freight to rail and leaving shorter regional runs to trucking. For drivers and fleets, shorter average loads mean less productive time per pickup and more frequent repositioning. The market is tightening despite apparent efficiency gains from faster truck cycles, suggesting that lost freight volume to rail is more significant than capacity freed up by shorter hauls.

Original article from FreightWaves
"Truckload’s shrinking miles"
https://www.freightwaves.com/news/truckloads-shrinking-miles
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