Spot Load Posts Increase 1%; Effects of Storm Still to Come
Hurricane Harvey hit on Friday, August 25, and the effect on supply chains and spot truckload rates won’t be fully reflected until next week, said DAT Solutions.
However, there was a continuation of unusually high demand for truckload capacity during the week ending August 26. The number of posted loads increased 1.0% compared to the previous week while available capacity fell 1.8%.
Van load posts increased 6% and truck posts declined 1%; flatbed load posts declined 7% while truck posts dipped 3%; and reefer load posts increased 5% and truck posts fell 2%. Reefer volumes continue to tick up, with reefer demand being especially strong in the Upper Midwest.
Load-to-truck ratios rose for vans (5.2 loads per truck, up 7%) and reefers (10.0, also up 7%) but declined for flatbeds (26.5, down 4%). That could change this week with relief supplies likely to move on flatbeds.
National average rates were unchanged compared to the previous week:
– Van: $1.78/mile
– Flatbed: $2.18/mile
– Reefer: $2.07/mile
In Houston, the average outbound van rate was up a penny to $1.69/mile, with the bulk of activity taking place before the weekend. Looking ahead, spot rates are expected to rise for loads heading into Houston and staging areas for relief freight including San Antonio, Dallas, and Lafayette, La. Carriers will want to account for delays unloading, road obstructions, and traffic, as well as the difficulty finding loads leaving those markets.
The national average on-highway diesel price added a penny to $2.61/gallon. Fuel prices are likely to rise more in the coming weeks because so many refineries are offline in Houston.
Category: General Update
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