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Spot Reefer Rate at 3-Year High; Van Lanes Surge

| November 28, 2017

Spot Reefer Rate at 3-Year High; Van Lanes Surge

The short Thanksgiving workweek meant 33% fewer loads and 26% fewer trucks posted on the DAT network of load boards but the demand for capacity boosted van and refrigerated freight rates again.

Spot rates continued to hover above seasonal norms during the week ending Nov. 25, reported DAT Solutions:
Reefer: $2.43/mile, up 3 cents—again—to a three-year record
Van: $2.07/mile, up 1 cent compared to the previous week
Flatbed: $2.29/mile, unchanged
In the reefer market, the number of load posts fell 38% while truck posts dropped 16%, causing the reefer ratio to decline 26% to 9.6 loads per truck. Several outbound reefer markets experienced double-digit average rate increases including Los Angeles ($3.14/mile, up 25 cents), Dallas ($2.32/mile, up 10 cents), McAllen, Texas ($2.23/mile, up 20 cents), and Philadelphia ($3.16/mile, up 25 cents).
Van load post activity fell 26% and truck posts dropped 27% but the van ratio increased slightly to 6.8 loads per truck. Heading into December, the spot van outlook is strong and rates from key markets are surging:
Los Angeles, $2.77/mile, up 6 cents
Chicago, $2.82/mile, up 12 cents
Memphis, $2.42/mile, up 3 cents
Atlanta, $2.38/mile, up 6 cents
Dallas, $1.87/mile, up 11 cents
Buffalo, $2.58/mile, up 13 cents
Philadelphia, $2.02/mile, up 6 cents
Several van lanes spiked as well compared to the previous week:
Chicago-Detroit, $3.69/mile, up 27 cents
Chicago-Los Angeles, $1.54/mile, up 5 cents
Buffalo-Allentown, $3.76/mile, up 36 cents
Dallas-Houston, $2.73/mile, up 17 cents
Los Angeles-Phoenix, $3.64/mile, up 24 cents
Flatbed load and truck posts were lower last week due to the Thanksgiving holiday. Load posts fell 39% and truck posts dropped 35%; the flatbed load-to-truck ratio dipped 5% to 26.0 loads per truck, still a high ratio.
Rates are derived from DAT® RateView, which provides real-time reports on prevailing spot market and contract rates, as well as historical rate and capacity trends.

Category: Featured, General Update, News

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