Spot Market Rate Trend of the Week – Winter Storms Drop Reefer Rates

Sharp ratedeclines hit refrigerated (reefer) carriers in the Atlanta and Philadelphiamarkets in the most recent 30-day period, from mid-December throughmid-January. Chicago was the only market to show a slight increase inoutbound rates, as carriers demanded more money to go to Dallas andPhiladelphia. Rate changes were moderate in other markets, includingAtlanta and Dallas. Los Angeles rates also declined substantially, due toseasonal trends that were not weather-related. Overall, reefer linehaul ratesslipped by 2% (approximately $0.03) since mid-December, while fuel surchargeshave generally climbed by about $0.02 per mile. The net result was a dip ofabout a penny in the “all in” rate per mile.

Markets with the Biggest % Change

  • Chicago( 0.6%)
  • LosAngeles (-5.3%)
  • Dallas(-0.3%)
  • Atlanta(-1.1%)
  • Philadelphia(-5.2%)
  • Overall(-2.0%)

Biggest Increases in Lane Rate

  • Columbus, OH to Philadelphia, PAup by $0.46 (winter weather)
  • Boston, MA to Philadelphia, PA up by $0.40 (winter weather)
  • Orlando, FL to Atlanta, GA, up by $0.35 (produce and winterweather)

Biggest Declines in Lane Rates

  • Atlanta, GA to Charlotte, NC down by $0.67 (winter weather – sizeof change disputable)
  • Philadelphia, PA to Boston, MA down by $0.46 (winter weather)
  • Seattle, WA to Carson, CA down by $0.37

The biggestprice increases occurred in Eastern snow belt cities, which included Atlantathis year. Boston and Columbus were affected, as were outbound rates fromOrlando, FL to Atlanta, GA.

Far away fromthe snow belt, the largest price change was from Seattle to Los Angeles, wherethe spot market linehaul price dropped by $0.37 per mile, according toTransCore’s Truckload Rate Index. The current all-in reefer rate for thatlane, including fuel surcharges, is down to only $1.28 per mile. That rate iscomprised of $0.89 for linehaul plus a fuel surcharge of $0.39.