DAT Solutions: Spot van rate hits high mark for 2019

The holiday freight rush is on. The national average spot van rate on DAT MembersEdge hit its highest level since January during the week ending Dec. 8 and load-to-truck ratios for all three equipment types surged.

All signs point to demand for van and reefer capacity staying solid through the end of the year as retail goods and groceries move through the supply chain for the holidays.

Monthly national average spot rates (through Dec. 8)

• Van: $1.94 per mile, 12 cents higher than the November average.
• Reefer: $2.26 per mile, 8 cents higher than November.
• Flatbed: $2.14 per mile, 3 cents higher than November.

Van trends

Pricing moved higher on 77 of DAT’s top 100 van lanes by volume while eight lanes declined and 15 were neutral. The national average van load-to-truck ratio hit 4.0 last week, almost double the average since the start of November.

Lanes with gains

Holiday rush load volumes were up nearly 30% out of the Laredo, Texas, freight market and about 20% in the Phoenix market compared to the previous week. Some of the largest lane-rate increases last week were out west:

• Seattle to Los Angeles: $1.59 per mile, up 26 cents. The return trip added 12 cents to $2.47 a mile.
• Salt Lake City to Stockton, Calif.: $1.57 a mile, up 22 cents. The return trip also added 22 cents to $2.60 per mile.
• Denver to Los Angeles: $1.21 per mile, up 20 cents. The return trip dipped just 3 cents to $2.70 a mile.

Reefer trends

The national average spot reefer rate has been on the increase since October. Thanks to the holiday rush, rates were higher on 42 of the top 72 reefer lanes by volume last week while only seven lanes dropped.

Lanes with gains

Lanes from Tucson, Ariz., Philadelphia, and Elizabeth, N.J. all significant produce markets – saw nice increases in their average rates during this holiday rush period. Among them:

• Tucson to Los Angeles: $2.12 per mile, up 26 cents. The return trip slipped 15 cents to $2.97.
• Philadelphia to Chicago: $1.72 a mile, up 21 cents. The return trip was $3.04 per mile, down 3 cents compared to the previous week.

Tri-haul of the week

Charlotte-Philadelphia-Pittsburgh-Charlotte

Spot van freight from Charlotte to Philadelphia averaged $2.38 a mile last week but the return trip was just $1.74 per mile, which pulled the round-trip average down to $2.06. You can do better.

The professional version of MembersEdge can suggest a third leg that will boost your revenue for the trip.

One of those suggestions would take you from Philly to Charlotte via Pittsburgh.

Philadelphia to Pittsburgh is averaging $2.59 per mile, which beats $1.74, while Pittsburgh to Charlotte is $2.19 per mile. Adding this third leg would average out to $2.36 per mile and produce $3,006 in revenue, an increase of $868 and 234 loaded miles compared to the straight round trip.

These rates represent last week’s averages, so look at the latest rates and load-to-truck ratios in MembersEdge and negotiate the best deal you can on every haul. If it works with your schedule and hours of service, you could use a tri-haul to round out the week with more money in your pocket.

Rates are derived from DAT RateView, which provides real-time reports on prevailing spot market and contract rates, as well as historical rate and capacity trends. All reported rates include fuel surcharges.

For the latest spot market load availability and rate information, visit the load board or tune in to Land Line Now. You can get all of the latest rate information at DAT.com per industry-trends per Trendlines, comment on the DAT Freight Talk blog, or join us on Facebook. On Twitter you can tweet your questions to us @LoadBoards and have your questions answered by DAT industry analyst Mark Montague.