A dry van is a type of semi-trailer that's fully enclosed to protect shipments from outside elements. Designed to carry palletized, boxed or loose freight, dry vans aren't temperature-controlled (unlike refrigerated “reefer” units) and can't carry oversized shipments (unlike flatbed trailers).
The market for dry van transportation sees fluctuations throughout the year, influenced by seasonal and regional factors, leading to variable rates in the spot market. Generally, national rate hikes for dry vans are observed during three distinct periods annually, primarily attributed to the impact of weather conditions on the produce sector. These hikes typically occur from March to April, June to July, and September to October.
In the transition from March to April, there's a surge in transportation needs across various sectors, triggered by warmer weather and the anticipation of heightened business activities in the upcoming summer months.
During June and July, the height of the produce season, there’s substantial demand for shipping goods from the southern to the northern states, often with a load-to-truck ratio averaging around 3:1
The period from September to October witnesses a spike in demand from the retail sector as businesses prepare for the holiday season, leading to increased transportation rates. Most companies have already stocked up in preparation for the holiday consumer rush post-October.
With the rise in demand and a constant number of drivers, competition intensifies over pricing to secure drivers for shipments. This scenario is consistent across various sectors utilizing dry vans. Companies outside the produce or retail industries must anticipate rate increases driven by these market dynamics.
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