The trucking and freight market is continuing to improve according to Freightwaves.com. Their most recent weekly Outbound Tender Volume Index shows a 23 percent increase of van loads over the last month. Freightwaves reports produce loads increased by seven percent. Nine of the 15 markets tracked by Freightwaves show positive increases in load volume. The west coast sticks out as an area of poor load volume.
The Cass Transportation Index published on June 15th reports May shipment volumes rebounded from the April drop. Year over year comparisons shows a 23.6 percent drop in May 2020 compared to May 2019. The Cass Truckload Linehaul Index shows May rates posted a 5 percent drop year over year. This drop was less than the 7 percent number in April.
June 2020 Freight Rates
|June 22 – 28 vs June 15 – 21||May 2020 vs April 2020||May 2020 vs May 2019|
|Spot Market Loads||+16.2%
|Spot Market Capacity||-3.6%||-11.8%||-9.0%|
|Van Rates (Spot)||+6.7%||-2.2%||-11.0%|
|Flatbed Rates (Spot)||+2.8%||-1.6%||-16.3%|
|Reefer Rates (Spot)||+3.7%||+5.0%||-5.8%|
DAT.com’s most recent trend lines report is showing van rates at a low for the year. The report shows national van rate average spot rate are at $1.75 per mile, a $.15 increase from the May average. According to DAT, the West has the highest average van rates at $1.85 per mile, and the lowest average rates are in the Northeast at $1.41 per mile. According to DAT, load-to-truck ratios are highest in the southern half of the country and lowest in the Northwest.
Reefer freight rates are averaging $2.10 per mile, an eight cent increase from the May average. Reefer rates are highest in the West at $2.39 per mile, and the lowest rates are in the Northeast, with an average of $1.57 per mile. Current load-to-truck capacity shows reefer demand is highest in the Southwest and lowest in the Northeast.
National average flatbed rates are at $2.02 per mile, a $.12 increase from the May average. The highest average flatbed rates are in the Midwest at $2.09 per mile, and the lowest rates are in the Northeast, with an average of $1.81 per mile. Load-to-truck ratios are highest in the Northwest and Southeast, and lowest through the rust-belt states. For more details, visit Dat.com.
Turning to fuel prices, the latest Energy Information Administration data shows the national average diesel price is at $2.40 per gallon. Regional diesel prices range from an average of $2.17 in the gulf coast states to $2.67 in the central Atlantic region. California diesel prices are averaging $3.22 per gallon.
Diesel fuel price map as of June 22, 2020.
|06/15/20||06/22/20||06/29/20||Week Ago||Year Ago|
|East Coast (PADD 1)||2.501||2.515||2.524||+0.009||-0.556|
|New England (PADD 1A)||2.628||2.631||2.648||+0.017||-0.487|
|Central Atlantic (PADD 1B)||2.673||2.694||2.704||+0.010||-0.566|
|Lower Atlantic (PADD 1C)||2.359||2.370||2.377||+0.007||-0.564|
|Midwest (PADD 2)||2.256||2.289||2.299||+0.010||-0.625|
|Gulf Coast (PADD 3)||2.174||2.197||2.194||-0.003||-0.609|
|Rocky Mountain (PADD 4)||2.346||2.353||2.343||-0.010||-0.655|
|West Coast (PADD 5)||2.930||2.945||2.948||+0.003||-0.680|
|West Coast less California||2.579||2.591||2.586||-0.005||-0.619|
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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