In addition to being a short work week, it was also the busiest week on the Christmas tree shipping calendar. Retailers looked to position inventory as shoppers began the holiday buying process.
Note: All rates exclude fuel unless otherwise noted.
Reefer spot rates in the Pacific Northwest, where the most softwood pines are harvested, peaked at $3.37/mile last week, which is up $0.35/mile over the last four weeks. Loads from Seattle to San Francisco averaged $2.64/mile last week, which is more than $1.00/mile higher than the same week last year.
Ahead of last weekend’s festivities in Las Vegas, reefer spot rates from Los Angeles hit a new 12-month high of $6.11/mile. That’s $1.00/mile higher than the same time last year.
In the other main holiday destination in Orlando, FL, spot rates from Atlanta to Orlando held steady at $4.18/mile last week. That’s up $0.74/mile compared to the same week last year. Reefer capacity was also tight in Florida as winter vegetables continue to ship in increasing volumes. Spot rates were up $0.14/mile last week to an average outbound rate of $1.72/mile.
Reefer equipment posts dropped by 30% last week compared to just 19% in Thanksgiving week in 2020. This resulted in tighter capacity during an unprecedented shipping season characterized by very high demand. The reefer spot rate ended last week up $0.04/mile to a national average of $3.04/mile, which is 16% or $0.47/mile higher than this time last year.
How to interpret the rate forecast:
- Ratecast: DAT’s core forecasting model
- Short Term Scenario: Formerly the pessimistic model that focuses on a more near-term historical dataset
- Blended Scenario: More heavily weighted towards the longer-term models
- Blended Scenario v2: More heavily weighted towards the shorter-term models