California Begins Rate Recovery
California's spot market rates were on the decline since the start of 2011, but last week truckload freight rates rose by 0.3% in the Golden State. This modest increase may signal the start of a recovery for key West Coast markets. The decline in rates slowed in February, and rates seemed to have hit bottom by the end of the month. This first uptick looks like the harbinger of a Spring rebound.
We'll know more next week, but for now, we can report that key outbound lanes from Los Angeles made significant gains in the past 15 days, including the routes from Los Angeles to Atlanta (up by $0.04) and from Los Angeles to Denver (up by $0.09).
Rates Trend Up in Denver and Atlanta, Down in Memphis
Compared to markets across the country, Denver recorded the highest increase with a 5.8% boost in van rates over the past week. Lane rates from Denver to LA is up $0.06 and vans to Dallas got $0.09 more per mile, compared to the previous week.
Outbound rates continue to increase from Atlanta to various markets on the East Coast, including Charlotte, Philadelphia and central Florida.
In contrast, Memphis was the market with the biggest decline, as rates dipped by 1.4% week over week. Lanes that took the biggest hit included Dallas, (down by $0.06) and to Colombus (down by $0.09).
Spot Market Rates
As a national average, spot market rates for vans rose by $0.04 since the end of February, while flatbed rates were up by $0.05. Rates for reefer freight declined by $0.01 due to seasonal trends.
Diesel fuel prices increased 8% ($0.30) over the past two weeks, adding to the upward pressure on trucking freight rates.