As regular readers will know, April 1 marked the end of the “soft enforcement” period of the ELD mandate. That means that trucks can now be placed out of service if they don’t have an ELD installed. Before the deadline, DAT surveyed 645 carriers and found that 91 percent were already compliant with the new regulations. As a result, the April 1 deadline hasn’t had a big impact on the spot market so far. In fact, even with the tighter enforcement of the regulation, capacity loosened last week, meaning that there were more trucks posting their availability on the spot market.
That seemed to have a moderating effect on freight rates as a general rule.
At once, volumes rose last week for reefer freight — the post-Easter lull in reefer volumes didn’t last long. Load counts were up 15 percent, close to where they were at the close of the first quarter. Produce is moving out of Southern California and Central Florida, but we’re just getting started.Reefer hot markets: We’re entering peak season for Florida, and rates were up 4 percent out of both Miami and Lakeland. Several lanes out of California also paid better: Fresno to Seattle surged to $2.95 per mile on average, and Sacramento to Denver jumped 30 cents to an average of $2.68 per mile.
Not so hot: Some scattered falling prices: Elizabeth, N.J., to Boston fell 33 cents to $4.18 per mile. Chicago to Atlanta was down 28 cents to $3.03, and Atlanta to Philadelphia dropped 25 cents to $2.63.
That Fresno to Seattle reefer lane no doubt could present a pretty decent picture for many with that $2.95/mile average, but the return trip is a different story ($1.56/mile). If you can make it work with your hours, look for a shorter haul to Spokane, Wash., from Seattle, which lane paid an average of $2.76 per mile last week. From Spokane to Fresno, you could get $1.78, judging by the averages. Not figuring in any deadhead, this would add 343 miles to round, but also boost your revenue by more than $1,000.
Volumes rose on five of the six top markets for van loads last week.Van hot markets: Dallas had the highest load counts, while Stockton, Calif., had the biggest improvement in volumes. No markets were up last week from a pricing standpoint, but almost all of the major markets are up from a month ago.
Not so hot: The one exception on the top six markets was Los Angeles, where load counts declined. Outbound rates from Buffalo, N.Y., fell the most. In Texas, prices adjusted to the higher volumes out of Dallas, with rates from Houston to Dallas down 16 cents per mile on average.
