Spot Truckload Freight Rates Jump as Harvey Disrupts Supply Chains
The availability of spot truckload freight increased 2.9% while available trucking capacity fell 4.3% for the week ending Sept. 2, the first full week after Hurricane Harvey made landfall, according to DAT Solutions and its network of load boards.
This resulted in national average rates rising compared to the previous week with the biggest happening in the van sector, up 12 cents to $1.90 per mile, and its best showing out the past four weeks.
Flatbeds and reefers moved up more modestly, 2 cents and 3 cents, respectively, with flatbeds at an average of $2.20 per mile and reefers not far behind at $2.10 per mile. Both were also at four-week highs.
These rates include a fuel surcharge but not accessorial fees that compensate the carrier for loading, unloading, layovers, and detention, all of which have likely risen significantly for trucks carrying relief supplies, according to DAT. The rearrangement of supply chains, the difficulty of shipping in the flooded region, and a tightening spot market pushed rates higher on 78 of the top 100 van lanes in the country.
Nationally, van load posts increased 4% and truck posts declined 5% compared to the previous week, to yield a 9% increase in the load-to-truck ratio, from 5.2 to 5.6 loads per truck.
Reefer load posts increased 11% and truck posts declined 4%, which resulted in a 16% increase in the load-to-truck ratio, to 11.6 loads per truck.
Flatbed load posts fell 4% while truck posts dipped 4%. That caused the load-to-truck ratio to increase 0.5%, to 26.7 loads per truck.
Not surprisingly, the spot truckload freight market felt the effects of Hurricane Harvey and its aftermath in several ways. The number of available outbound loads from Houston plunged 72% compared to the previous week, when the storm came ashore late on Aug. 25. Despite the loss of volume, …Read the rest of this story
