Why Did Rates Rise, if Holiday Shipping is Done?

Line haul rates rose again last week for both vans and reefers on the highest-volume lanes in the U.S. and Canada. Rates had softened after Thanksgiving, and it seemed that the holiday shipping season was coming to a close, at least for truckload carriers on the spot market. So why did prices bounce back?

VANS: One answer is that outbound van rates took a nosedive in early December, and the price increase returned rates to the "new normal" of $2.08 per mile.

We have been sampling average rates for the top lanes -- 80 for van and 76 for reefer -- for the past for years or more, as part of our weekly Trendlines update. This group of lanes offers advance intelligence of spot market rate movements that are typically reinforced a few days later by changes in the national average rates on all 20,000 point-to-point lanes in North America.

Those spot market rates reflect thousands of rate agreements per day, and the prices actually paid by freight brokers to the carriers for each transaction. As we have discussed before, sustained changes in spot market rates usually predict changes in the contract rates that large carriers charge to their shipper customers.



Peggy Dorf

Peggy joined DAT in 2008 as a writer and market analyst. She was instrumental in developing DAT Trendlines, and she writes extensively about the impact of economic trends on companies and individuals in transportation and logistics. Peggy is a Certified Transportation Broker with decades of experience in technology marketing and an MBA from the Wharton School.



Comments

About DAT

DAT operates the largest truckload freight marketplace in North America. Transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights derived from 256 million freight matches and a database of $68 billion of market transactions.

The Original Load Board - Trusted Since 1978

The company was established in 1978 as the Dial-A-Truck (DAT) load finder service at Jubitz® truck stop in Portland, OR.

TIA
OOIDA
CSCMP
MATS