Spot Truckload Freight Rates Post Weekly Gains
Fallout from Hurricane Matthew and the Hanjin Shipping bankruptcy helped push spot market rates higher over the past week, according to the freight matching service provider DAT Solutions, while a separate report shows rates in September were mixed when compared to the previous month and a year ago.
Based on activity from the DAT network of load boards, the increase in national average spot truckload rates for the week ending Oct. 8 compared to the previous week happened as load-to-truck ratios decreased across all three equipment types.
The national average van rate increased 6 cents to $1.68 per mile while flatbeds posted a 4 cents gain for an average of $1.92 per mile. Reefers showed the weakest improvement, just a penny, also for an average of $1.92 per mile. All three are at their highest levels in at least the last four weeks and include fuel surcharges.
“These conditions are partly attributable to Hurricane Matthew,” the company said. “The storm’s effects likely contributed to higher van rates and lower freight volumes as shippers paid more to move freight early in the week before reducing their activity later.”
DAT is forecasting inbound rates could go up in hard-hit areas like the Carolinas this week.
Last week the van load-to-truck ratio dropped 9% to 2.8 to 1, as the number of posted van loads fell 7% and truck posts rose 2%, unusual for a week with a 6-cents increase in the average van rate, according to DAT.
Reefer load posts declined 4% while truck posts increased 3%. The result was a 7% decline in the reefer load-to-truck ratio, 5.6 to 1. The flatbed load-to-truck ratio fell 7% to 13.4 to 1, after flatbed load posts declined 6% and truck posts increased 1%.
The Hanjin Shipping Co. bankruptcy continues to affect demand on the West Coast, as Los Angeles was …Read the rest of this story
