Van rates rose 1.5% in the past week; this is the third consecutive week over week increase for this segment. Let's break down this upward movement and uncover specific trends...
Rates from Los Angeles rose for the third consecutive week. Outbound rates recorded the greatest gains on lanes to Northern California. While rates increased, the load-to-truck ratio dipped in LA and we might see a dip in rates next week. As one of the largest markets, rate movement from Los Angeles has reflected overall van trends in the past month. I'm anticipating an earlier spike in freight volumes this year and will keep an eye on Los Angeles for any signals.
Memphis also recorded an increase in rates and freight in the past week. Lanes from this market to Atlanta, Columbus and Dallas appear to be solid choices for carriers in that region.
As rates from Southern California increased on intrastate lanes to northern markets, Stockton rates dropped 3.2%. This is the market's second consecutive week over week decline. I noticed a higher volume of loads moving from Sacrament to southern markets, which indicates that rates may increase in the coming week. Typically freight volumes and rates move in the same direction.
The linehaul rate from Chicago to Atlanta is currently holding at $1.99/mile despite the increase in diesel prices. I'll let you know next week if I see a shift in either direction. Another anomaly is Stockton to Los Angeles: the lane recorded no change week over week despite the shift in rates from both markets.
For more information, visit the Rate Trend of the Week page in Trendlines. And feel free to comment with your thoughts or what you're experiencing in the market.