Lower Fuel Surcharges Cause Dip in Van, Reefer Rates
Capacity Still Loose in Many Places
Mar 19 – 25 – Trucks were ready to go after the winter storm from a couple weeks ago had cleared out, so even though volumes picked up on many of the top van lanes, there was enough capacity to keep rates from rising. Lower fuel surcharges caused the national averages for van and reefer rates to dip 1¢ per mile. The national average flatbed rate rose 1¢.
The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.
Last update: 3/29/2017 – Next update: 4/5/2017
Fuel Prices
-0.4%$2.53 / gallon
Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up forTruckersEdge today and get your first 30 days free by signing up athttp://www.truckersedge.net/promo123 or entering “promo123” during sign up.
Van Rates Add 1¢, as Reefers and Flats Hold Steady
Load-to-Truck Ratios Climb
Mar 12 – 18 – A late winter storm stalled freight activity in and out of East Coast markets. The week began with a rush to move freight out ahead of the snowfall. During the storm, there was a lull, and some major roads were closed. By the end of the week, shippers rushed to catch up, at higher rates. Load-to-truck ratios rose for all three equipment types, but only the national average van rate edged up 1¢ per mile. Reefer rates and flatbed rates were unchanged, week over week.
The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.
Last update: 3/22/2017 – Next update: 3/29/2017
Fuel Prices
-0.8%$2.54 / gallon
Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up forTruckersEdge today and get your first 30 days free by signing up athttp://www.truckersedge.net/promo123 or entering “promo123” during sign up.
It’s official: The 2013 HOS restart rules are no more.
The 2013 version of the 34-hour restart rule required drivers to be off-duty for two periods from 1AM to 5AM before they could go back to work, and the restart could only be used once per week.
Those rules were suspended in December of 2014, but whether or not that suspension was going to be permanent had been a question hanging over the industry ever since.
The FMCSA and Virginia Tech conducted a safety review to determine whether or not to go back to the 2013 version of the restart rules. Ultimately, they found that the 2013 version of the restart rule wasn’t any safer than the version of the rule that everyone is using now, so the current version of the rule is what’s going to stay in place.
Mar 5 – 11 – Load-to-truck ratios increased for reefers and flatbeds last week, with flatbeds continuing a 6-week climb. That, however, did not translate into rate increases. Last week the national average van rate dropped 3¢ per mile, while both reefer rates and flatbed rates slipped 1¢ per mile.
The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.
Last update: 3/15/2017 – Next update: 3/22/2017
Fuel Prices
-0.8%$2.56 / gallon
Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up forTruckersEdge today and get your first 30 days free by signing up athttp://www.truckersedge.net/promo123 or entering “promo123” during sign up.
Before you apply for a loan here’s what you should do:
1. Write a Business Plan
Your loan request should be based on and accompanied by a complete business plan. This document is the single most important planning activity that you can perform. A business plan is more than a device for getting financing; it is the vehicle that makes you examine, evaluate, and plan for all aspects of your business. A business plan’s existence proves to your banker that you are doing all the right activities. Once you’ve put the plan together, write a two-page executive summary. You’ll need it if you are asked to send “a quick write-up.”
2. Have an accountant prepare historical financial statements.
You can’t talk about the future without accounting for your past. Internally generated statements are OK, but your bank wants the comfort of knowing an independent expert has verified the information. In addition, you must understand your statement and be able to explain how your operation works and how your finances stand up to industry norms and standards.
3. Line up references.
Your banker may want to talk to your suppliers, customers, potential partners or your team of professionals, among others. When a loan officer asks for permission to contact references, promptly answer with names and numbers; don’t leave him or her waiting for a week.
Walking into a bank and talking to a loan officer will always be something of a stressful situation. Preparation for and thorough understanding of this evaluation process is essential to minimize the stressful variables and optimize your potential to qualify for the funding you seek.
Last week, we said that if spot market volumes kept climbing, then rates were going to go up finally. Well, load posts soared at the end of February and beginning of March, and rates finally responded. The national average for van rates was up 4¢, and 56 of the top 100 van lanes paid better, versus the 30 that had declines. The rest stayed put.
The number of loads available on the spot market last month was also up more than 100% compared to February 2016, which is a pretty good sign that the freight recession really is over. Rates are still low in some places, but in general, things are trending upward.
Load-to-truck ratios are highest for vans in the darker red areas on the Hot States Map, above.
There were a lot more van loads available out of Chicago and Los Angeles. Even though it wasn’t enough to turn those states dark in the Hot States Map above, don’t be surprised if rates are up out of those places soon. Load counts slipped in Houston, but that market has been relatively strong all winter long. It closed the week strong, too, and the load-to-truck ratio hit 5.6 on Friday, compared to the 2.9 van loads per truck for the rest of the country. Rates got the biggest boosts out of Memphis, Atlanta and Seattle.
Buffalo has had a lackluster month. Since the freight coming out didn’t pay very well, inbound lanes paid more.
Philadelphia to Buffalo was up 18¢ to $2.13/mile
Columbus to Buffalo rose 17¢ to $2.57/mile
Chicago to Buffalo rates were up 15¢ to an average of $2.17/mile
Out West, the lane from Stockton to Denver recovered 13¢ to pay $1.82/mile on average
Memphis to Chicago was also up 12¢ at $1.76/mile
FALLING
Only one major van lane was down more than 10¢: Stockton to Salt Lake City dropped ▼18¢ to $1.92/mile
The freight market in L.A. finally started to improve, but that means some inbound lanes paid less. The lane from Chicago to L.A. fell ▼9¢ to just $1.17/mile. That lane competes a lot with rail, which also keeps the rates down.
Load-to-truck ratios are highest for reefers in the darker blue areas on the Hot States Map, above.
REEFER TRENDS
Reefer rates reversed course last week, too, though it was a bit slighter when compared to vans. Still, it’s good news considering the steady string of declines we had been seeing.
RISING
Volumes surged out of Miami. It’s still early for produce season in Florida, as evidenced by the light color in the Hot States Map. Volumes were also up big in McAllen, TX, down near the Mexican border. It was number 3 for reefer load posts on DAT load boards, behind Atlanta (1) and Elizabeth, NJ (2).
Usually when there’s an uptick in loads and rates out of Miami, it means that the inbound rate goes down — that wasn’t the case last week on the lane from Atlanta to Miami, which was up ▲15¢ to $2.58/mile
Dallas to Columbus was up ▲21¢ to $1.70/mile
The biggest spikes were on lanes out of Grand Rapids, but there aren’t a lot of loads on those lanes this time of year.
Grand Rapids to Cleveland jumped up ▲50¢ to $3.34/mile
Grand Rapids to Philly rose ▲38¢ to $2.88/mile
FALLING
California was still missing in action, and outbound rates slipped even lower out of Los Angeles. Recent rains have delayed strawberry harvests in much of the state, so those shipments are still a few weeks away.
Out East, two lanes out of Northern New Jersey took a hit last week
Elizabeth, NJ, to Boston fell ▼15¢ to $3.40/mile
Elizabeth to Lakeland, FL was down ▼12¢ to $1.71/mile
Load-to-truck ratios are highest for flatbeds in the darker green areas on the Hot States Map, above.
FLATBED TRENDS
Demand for flatbed trucks continued to climb ahead of where it normally is for this time of year. Even California joined the party last week, with higher than normal activity.
RISING
Rates improved almost everywhere, and port cities that had been down the week before rebounded last week. The biggest gains were in Atlanta, Memphis, and Baltimore.
Memphis to Dallas was up ▲39¢ to $2.74/mile, with a nice boost in volumes
Atlanta to Nashville also climbed ▲35¢ to $2.58/mile
FALLING
Pittsburgh rates and volumes didn’t hold after seeing a spike in the previous week.
The number of loads heading from Pittsburgh to Houston was down sharply, and rates came crashing back to earth at an average of $1.67/mile
Phoenix and Las Vegas volumes have been low, which is indicative of statewide trends in Arizona, Nevada, and New Mexico.
Cleveland has also been a little softer than other major flatbed markets this winter
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Feb 26 – Mar 4 – Spot market demand has been building, and last week that led to rate increases for each equipment type. The national average van rate increased 4¢ per mile, reefer rates added 1¢, and flatbed rates jumped 6¢. Load-to-truck ratios were also up sharply for each trailer type.
The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.
Last update: 3/8/2017 – Next update: 3/15/2017
Fuel Prices
+0.0%$2.58 / gallon
Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up forTruckersEdge today and get your first 30 days free by signing up athttp://www.truckersedge.net/promo123 or entering “promo123” during sign up.
Feb 19 – 25 – Flatbed freight demand continued to climb last week, with load-to-truck ratios rising 8%. Meanwhile, the late February lull for vans and reefers led to lower ratios, with the national average reefer rate down another 1¢, The national averages for van and flatbed rates were unchanged compared to the previous week.
The chart above depicts national average spot market rates for the past four weeks, including fuel surcharges. Weekly rate snapshots reflect averages for the month to-date, from DAT RateView.
Last update: 3/1/2017 – Next update: 3/8/2017
Fuel Prices
+0.4%$2.58 / gallon
Trucking Success partners with DAT to offer a special on the TruckersEdge load board. Sign up forTruckersEdge today and get your first 30 days free by signing up athttp://www.truckersedge.net/promo123 or entering “promo123” during sign up.
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