With the annual Roadcheck inspection blitz in its final day, with an emphasis on hours-of-service compliance, as shown elsewhere here in OverdriveOnline.com, a lot of haulers take a vacation to avoid the hassle. And many drivers are in fact working lose driving time due to the inspections. Constraints on time and nationwide capacity result — Roadcheck usually leads to higher rates.
And rates were already trending higher before Roadcheck. During the week of Memorial Day, truckload demand outpaced the number of available trucks, which pushed van rates to the highest they’ve been since full ELD mandate enforcement began on April 1.Hot van markets: Many of the top van lanes have average rates exceeding $3 per mile. Strong volumes in Los Angeles, Dallas and Atlanta also signal a strong June for the spot market. Atlanta van load counts only dropped 2 percent last week, compared to the previous week, yet the average van rate on the lane from Atlanta to Philadelphia, as just one example, spiked to $3.56 per mile last week.
Not so hot: Strong inbound volumes to the Northeast continued to keep prices in check in that region, since there are more trucks available to haul outbound loads. Out West, the lane from Denver to Phoenix fell to just $1.28 per mile.
Chicago to Dallas and back provides an example of a lane where van rates have been pretty ho-hum by comparison to the hot lanes in other areas. The average rate for that roundtrip is $1.90 per mile, but there are opportunities to split the northbound leg to take advantage of better rates on other lanes. Dallas to Lexington, Ky., had van rates averaging $2.22 last week. The last leg of the trip from Lexington to Chicago averaged even better: $2.64 per mile. Altogether, the average rate per loaded mile for the round would jump to $2.25, with about 320 extra miles. If it made sense with your hours of service, the extra move would boost your revenue by nearly $1,400 over the straight out and back from the Windy City.
Reefer rates have continued their momentum even after the strong run-up to Memorial Day weekend.Hot reefer markets: Reefer demand continues to build in California, with rates climbing in north-central markets like Sacramento and Fresno. Reefer rates were also on the rise out of Los Angeles, with the average price on the lane to Denver hitting $3.62 per mile.
Not so hot: Florida markets are sliding from the spring peak. For example, rates on the lane from Miami to Elizabeth, N.J., tumbled 40 cents to an average of $2.49 per mile.
