64% of Van Lanes Decrease, Yet Overall Cost Rises

This week I will again focus on the van segment which posted an overall 0.8% increase in linehaul rates and has shown the most volatility. In the last week, 41 of 64 key spot market lanes showed a decrease, which is an unusually high percentage. Overall, cost of transportation is up. The conflicting data represents high volume lanes tending up while low volume lanes declined and the size of the average increase was larger than the decline, hence this week’s modest gain.

Nowhere was the trend more evident than in the Atlanta, GA market. Loads as measured by actual moves provided to TransCore increased by 27% week over week. This volume appears to have resulted in a 5.9% increase in the average linehaul rate. Some of this may be due to more freight to Florida in the mix as that traffic moves at a high rate per mile. The specific lane from Atlanta to central Florida has climbed by 19 cents per mile over the last month.

Dallas led in highest percent decline with a 1.7% rate drop. Spot market traffic from Dallas posted a 9.1% decline on eight key lanes. Most of the decrease in cost occurred in the intrastate lane to Laredo.

Flatbeds and reefers show little change in rates as measured at the National level. Produce lanes remain down for reefer, while major market flatbed has shown some upward price pressure from Atlanta, up 4.1%, and Los Angeles, up 4.3% in the last two weeks. Transcontinental flatbed providers should be advised that the increase from LA applies to the western region, and hauls across the country were largely unchanged.

For detailed information on current spot market lane rates check out Truckload Rate Index. For weekly market trends, sign up for TransCore Trendlines.