August 2019 Freight Rates
|Aug 12-18 vs Aug 05-Aug 11||Jul 2019 vs Jun 2019||Jul 2019 vs Jul 2018|
|Spot Market Loads||+5.4%||-19.9%||-37.3%|
|Spot Market Capacity||-1.3%||+12.2%||+22.6%|
|Van Rates (Spot)||+1.7%||-2.7%||-18.9%|
|Flatbed Rates (Spot)||-0.7%||-1.3%||-17.8%|
|Reefer Rates (Spot)||+1.1%||-3.0%||-15.7%|
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 down.
According to the most recent DAT.com trendlines report, national van rate averages are at $1.81 per mile, three cents lower than the July average. The Midwest is the leader with van rates averaging $2.00 per mile, and the lowest average rates are in the Northeast at $1.61 per mile. Load-to-truck ratios remain highest in the south-central states and lowest in the northwest.
Reefer freight rates continue to drop, with a current national average of $2.14 per mile. This is a five-cent decline from the July average. Reefer rates are highest in the Midwest, averaging $2.39 per mile, and lowest in the Northeast, with an average of $1.84 per mile. Current load-to-truck capacity shows reefer demand is highest along the Mississippi River corridor and lowest west of the Rockies.
National average flatbed rates are at $2.21 per mile, compared to the July average of $2.27 per mile. The highest average rates are in the Midwest at $2.37 per mile, and the lowest is on the west coast, with an average of $2.00 per mile. The strongest load-to-truck ratios are in the Southeast and Northwest states, the weakest ratios are in the Midwest and great lakes region.
Looking at fuel prices, the latest Energy Information Administration data shows the national average diesel price is at $2.99 per gallon. Regional diesel prices range from an average of $2.75 in the gulf coast states to $3.20 in the central Atlantic region. California diesel prices are averaging $3.89 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.
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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