June 2019 Freight Rates
|Jun 17-23 vs Jun 10-Jun 16||May 2019 vs Apr 2019||May 2019 vs May 2018|
|Spot Market Loads||-2.0%||-10.6%||-62.6%|
|Spot Market Capacity||+3.5%||+2.5%||+32.7%|
|Van Rates (Spot)||+1.3%||-0.7%||-16.9%|
|Flatbed Rates (Spot)||-0.2%||-2.2%||-16.1%|
|Reefer Rates (Spot)||+1.2%||+0.1%||-15.3%|
According to the most recent DAT.com trendlines report, national van rate averages are at $1.90 per mile, 11 cents higher than the May average. In June 2018, van rates averaged $2.32. The Midwest is the leader with van rates averaging $2.03 per mile. The lowest average rates are in the Northeast at $1.58 per mile. Load-to-truck ratios remain highest in the southern states and lowest throughout the Northern parts of the country.
Reefer freight rates are also up slightly in June, with a current national average of $2.25 per mile. This is a $.10 jump from the May average. However, the average is down significantly from the June 2018 rate of $2.71. Reefer rates are highest in the West, averaging $2.35 per mile, and lowest in the Northeast, with an average of $1.76 per mile. Current load-to-truck capacity shows higher demand across the Southern states and low demand in most Northern states.
National average flatbed rates are at $2.30 per mile, a tick up compared to the May average of $2.28. Flatbed rates averaged $2.82 one year ago. The highest average rates are in the Midwest at $2.47 per mile, and the lowest is on the west coast, averaging $2.04 per mile. The strongest load-to-truck ratios continue to be in the Southeast and Northwest states, the weakest ratios are in the great lakes region.
The recently published May 2019 Cass Freight Index, reports shipments have dropped 6.0% compared to May 2018. This drop is a continuation of declines in shipments which began in December 2018. Cass analysts see this as a slowing of the economy and predict truck capacity will exceed demand in the coming months, causing rates to remain low.
Looking at fuel prices, the latest Energy Information Administration data shows the national average diesel price is at $3.04 per gallon. Regional diesel prices range from an average of $2.80 in the gulf coast states to $3.26 in the central Atlantic region. California diesel prices are averaging $3.97 per gallon.
One of the biggest concerns facing many fleet operators right now is the shortage of drivers. For information on how to recruit and retain drivers in today’s market, visit the trucking blog at tcicapital.com and search “drivers”. Some recent articles include Recruiting Truck Drivers by Going Outside the Box, and Recruiting and Keeping Drivers.
For more information on current freight trends, as well as up-to-date news about the trucking industry, visit the trucking news and information page.
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