October 2019 Freight Rates
|Oct 14-20 vs Oct 07-13||Sep 2019 vs Aug 2019||Sep 2019 vs Sep 2018|
|Spot Market Loads||-5.0%
|Spot Market Capacity||-1.2%||-7.2%||+14.9%|
|Van Rates (Spot)||+0.5%||+1.4%||-14.0%|
|Flatbed Rates (Spot)||+0.7%||-0.1%||-14.1%|
|Reefer Rates (Spot)||+0.0%||+0.7%||-13.9%|
The four major elements affecting the trucking market show inbound container shipments are down. Load volume is down. Truck capacity is up, and fuel prices are up.
According to the most recent DAT.com trendlines report, national van rate averages are at $1.81 per mile, down three cents from the September average. The Midwest is the leader with van rates averaging $2.07 per mile, and the lowest average rates are in the Northeast at $1.64 per mile. Load-to-truck ratios are spotty; the higher ratios are scattered across the country. The lowest ratios are in the Southeastern states and the Northwest.
Reefer freight rates are averaging $2.12 per mile, a three cent decrease from the September average. Reefer rates remain highest in the Midwest, averaging $2.49 per mile, and lowest in the Northeast, with an average of $1.90 per mile. Current load-to-truck capacity shows reefer demand is highest in the Northern third of the country. The lowest demand is in Florida, Georgia, and Arizona.
National average flatbed rates are at $2.20 per mile, which is the same average as September. The Midwest has the highest average rates at $2.37 per mile, and the West coast has the lowest, with an average of $1.96 per mile. The strongest load-to-truck ratios continue to be in the Southeast and Northwest states, the weakest ratios are in the Midwest, and in the Southwest.
To have a better understanding of how freight rates are calculated, Click Here.
Looking at fuel prices, the latest Energy Information Administration data shows the national average diesel price is at $3.05 per gallon. Regional diesel prices range from an average of $2.80 in the gulf coast states, to $3.24 in the central Atlantic region. California diesel prices are averaging $3.98 per gallon.
|10/07/19||10/14/19||10/21/19||Week Ago||Year Ago|
|East Coast (PADD 1)||3.04||3.044||3.045||+0.001||-0.324|
|New England (PADD 1A)||3.047||3.042||3.045||+0.003||-0.323|
|Central Atlantic (PADD 1B)||3.224||3.227||3.235||+0.008||-0.298|
|Lower Atlantic (PADD 1C)||2.915||2.920||2.916||-0.004||-0.338|
|Midwest (PADD 2)||2.967||2.967||2.957||-0.010||-0.376|
|Gulf Coast (PADD 3)||2.804||2.805||2.802||-0.003||-0.350|
|Rocky Mountain (PADD 4)||3.022||3.041||3.044||+0.003||-0.364|
|West Coast (PADD 5)||3.642||3.653||3.675||+0.022||-0.196|
|West Coast less California||3.215||3.240||3.290||+0.050||-0.297|
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.
Freight factoring is a common financing solution for trucking companies to access cash that is tied up in their receivables. Instead of waiting weeks or even months for customer payment, get paid same-day with TCI Business Capital. We’re proud to be the top factoring company for trucking companies across the United States.
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To learn more about our freight factoring services, call TCI Business Capital at 800-707-4845 or contact us via the web.
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