After getting off to a hot start in May, van trends took a slight dip last week in terms of volumes and rates.There was a small change to the negative in van rates and volumes last week considered nationally, but that’s coming down from an elevated level. Volumes are just about as strong as they’ve been all year, and capacity is tight across the southern half of the country.
Hot markets: Load counts are building in California, which has the potential to lift rates nationwide. Los Angeles and Stockton, Calif., have had the biggest overall increases in outbound van rates for the month. Meanwhile, prices were lower out of Columbus, Ohio, which in turn led to some higher rates on inbound lanes like Atlanta to Columbus, which averaged $2.32 per mile last week.
Not so hot: Most of the big declines on the top 100 van lanes were on lanes that had seen rate spikes two weeks ago. For instance, Boston to Allentown, Pa., was back down to $2.16. Memphis to Columbus also declined, perhaps a sign of slower retail demand once all the Mother’s Day shipments had been delivered.
Van rates on the lane from Chicago to Denver have dipped to their lowest point in a month or so. While that lane has paid less recently, the Denver to Chicago seems to never fetch much on the spot market. Last week the average rate tracked by DAT was just $1.20. Breaking it into two shorter hauls, with Rapid City, S.D., based on last week’s averages could boost your average rate per mile significantly. Right now, the load-to-truck ratio is favorable in Rapid City. Van loads going there from Denver averaged $2.27 per mile last week, while Rapid City to Chicago averaged $2.12. Not counting any empty miles, the extra stop adds about 300 miles to what was originally a 2,000-mile trip, and it could boost your average rate from $1.93 to $2.38. If you can make it work with your hours, it’s an extra $1,600.
Reefer load counts and rates continued to climb last week, boosted by produce markets across the country.Last week was the fifth in a row for rising volumes of reefer freight, and rates continued to surge out of the Southeast.
Hot markets: Florida freight was still in full swing last week, with rates in Lakeland and Miami up 15 percent and 8 percent respectively. Reefer rates were also up out of Nogales, Ariz., an entry point for Mexican produce, as well as McAllen, Texas, another border market.
Not so hot: The ripple effect of Florida hitting its peak was some lower prices elsewhere, as buyers adjusted their sourcing. For example, reefer rates on the lane from Atlanta to Philadelphia tumbled 48 cents to an average of $2.60 per mile.
