The four major elements affecting the trucking market show inbound container shipments are down. Load volume is up. Truck capacity is down, and fuel prices are holding steady.
January 2020 Freight Rates
|Jan 06 – 12 vs Dec 30 – Jan 05||Dec 2019 vs Nov 2019||Dec 2019 vs Dec 2018|
|Spot Market Loads||+57.6%
|Spot Market Capacity||+49.5%||-10.7%||+6.4%|
|Van Rates (Spot)||-0.6%||+6.1%||-7.1%|
|Flatbed Rates (Spot)||+0.4%||+2.5%||-11.2%|
|Reefer Rates (Spot)||-2.9%||+5.5%||-6.3%|
DAT.com has just released their latest trend lines report, showing rates continue to stay at a 13 month high. The report shows national van rate averages are at $1.96 per mile, up nine cents from the December average. According to DAT, the Midwest has the highest average van rates at $2.27 per mile, and the lowest average rates are in the Northeast at $1.80 per mile. Load-to-truck ratios are highest in the upper Midwest and northern Rockies and lowest in the Pacific Northwest.
Reefer freight rates are averaging $2.31 per mile, an eight cent increase from one month ago. Midwest reefer rates are highest at $2.77 per mile, and lowest in the Northeast, with an average of $2.03 per mile. Current load-to-truck capacity shows reefer demand is highest in the Upper Midwest and lowest on the West coast.
National average flatbed rates are at $2.36 per mile; an increase of 19 cents from the December average. The highest average flatbed rates are in the Midwest, at $2.45 per mile, and the lowest are in the West, with an average of $1.96 per mile. Load-to-truck ratios are strongest in the Northern plains and Rockies, the weakest ratios are in the Southwest.
Looking at fuel prices, the latest Energy Information Administration data shows the national average diesel price is at $3.06 per gallon. Regional diesel prices range from an average of $2.81 in the gulf coast states, to $3.29 in the central Atlantic region. California diesel prices are averaging $3.87 per gallon.
|12/30/19||01/06/20||01/13/20||Week Ago||Year Ago|
|East Coast (PADD 1)||3.096||3.120||3.111||-0.009||+0.062|
|New England (PADD 1A)||3.114||3.127||3.131||+0.004||-0.077|
|Central Atlantic (PADD 1B)||3.271||3.294||3.291||-0.003||+0.074|
|Lower Atlantic (PADD 1C)||2.975||3.000||2.984||-0.016||+0.081|
|Midwest (PADD 2)||2.978||2.977||2.965||-0.012||+0.142|
|Gulf Coast (PADD 3)||2.808||2.828||2.810||-0.018||+0.022|
|Rocky Mountain (PADD 4)||3.113||3.100||3.065||-0.035||+0.078|
|West Coast (PADD 5)||3.623||3.616||3.593||-0.023||+0.122|
|West Coast less California||3.274||3.264||3.241||-0.023||+0.111|
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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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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