TransCore: Spot market rates slow
Spot market rates for dry vans exceeded contract rates in just 13 percent of lanes in the third quarter, down sharply from 24 percent in the second quarter, a TransCore report reveals.
The rates covered 7,600 lanes and were based on more than $850 million in monthly transactions derived from rate agreements and freight bills in TransCore’s Truckload Rate Index, the load board services company said.
In lanes where spot market rates were higher, the report said, the average difference varied from 17 cents a mile in July to 29 cents in August and 31 cents in September.
Variations were wider in areas where contract rates topped spot rates. Average differences ranged from 40 cents a mile in July to 31 cents in September, the report said.
Also in the report, areas of higher demand shifted from the Southeast in second quarter to the Midwest in the third quarter. “Lanes originating in New England had the highest percentage increase, but outbound rates remained lower there than in other regions,” said report author Mark Montague, Industry Pricing Analyst at TransCore.
In the third quarter, the top 10 van markets where spot rates exceeded contract rates were led by Green Bay, Wis., Evansville, Ind., and Bloomington, Ill.
To obtain the report click here.