RXO Lifts Q2 Outlook as Truckload Spot Rates Jump 16.5%

2 articles · Updated · FreightWaves · May 20

RXO said Q2 gross profit per truckload should beat normal seasonal trends and be at least flat with April, reversing its earlier forecast for a May decline.
16.5% year-over-year spot-rate growth in Q1 — the fastest since Q3 2021 — is expected to accelerate in Q2 as tighter capacity keeps lifting prices despite soft freight demand.
Stricter driver oversight, rising labor, insurance, capital and diesel costs, and elevated tender rejections are squeezing carriers and pushing more freight into the spot market.
2.4% higher contract rates in Q1 show spot-market strength is already feeding into negotiations, with carriers now targeting mid- to high-single-digit increases and some double-digit hikes for transactional shippers.
RXO said April truckload volumes fell about 2% from a year earlier but outperformed the broader market, while tighter conditions in May and the CVSA Roadcheck boosted spot opportunities heading into summer.

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