Truck rates declining with more equipment available
Originally published on The Packer
Truck rates have sagged a bit as truckload capacity continues to build in the first weeks of 2019, according to a report from DAT Solutions.
The firm said in a Jan. 19 report that national average spot rates for dry van, reefers, and flatbeds continue to decline.
From the report:
In a typical seasonal slump, the number of trucks on the spot truckload freight market increased 7.4% while the number of loads dipped 10% during the week ending Jan. 19, said DAT Solutions, which operates the DAT network of load boards.
National average spot rates declined for the second straight week:
– Van: $2.01/mile, down 4 cents
– Flatbed: $2.38/mile, down 4 cents
– Reefer: $2.37/mile, down 5 cents
Last week truck posts increased 5% while load posts fell 15%, which caused the load-to-truck ratio to drop from 6.1 to 4.9 loads per truck. It’s been more than six months since the load-to-truck ratio has been below 5 loads per truck.
Average spot rates were down on several key regional reefer lanes and major markets across the country.
– Los Angeles: $2.92/mile, down 11 cents after an 18-cent decline the previous week
– Atlanta: $2.56/mile, down 5 cents
– Lakeland, Fla.: $1.46/mile, down 9 cents
– McAllen, Texas: $2.24/mile, down 7 cents
– Philadelphia: $2.90/mile, down 5 cents
– Chicago: $2.80/mile, down 14 cents after falling 13 cents the previous week
Check out the truck rates from Oxnard California over the past year in the chart, and it is plain to see rates have fallen well below a year ago.
Also, check out the price trends of the top ten produce items by volume.