Van Rates Rocket During 4th of July Week
By Mark Montague, DAT Solutions
Independence Day fell on a Thursday this year, so there were many people who took Friday off as well. That meant any shipments needing to be delivered last week had a tighter window, and as a result, those shipments moved at a premium. The average van rate during the shortened holiday week was $1.93/mi., which was 4¢ higher than the June average and 14¢ higher than May.
Freight volumes and rates typically slip after the 4th of July holiday rush, but e-commerce sales next week could keep the upward pressure on prices.
As seen in the graph above, load posts and truck posts on DAT load boards peaked on Monday, bottomed out on the 4th of July holiday, and then saw an uptick on Friday.
Prices Rise in the Midwest
The Midwest is finally seeing higher pricing as weather continues to warm up. Seattle had been sinking much of the second quarter, but rebounded a bit last week. Some of the lanes with the biggest increases included Memphis to Indianapolis, which jumped 22¢ to $2.56/mi. and Dallas to Houston, where average prices increased 14¢ to $2.51/mi. The lane from Stockton, CA, to Salt Lake City rose 15¢ to $2.60/mi.
Rates Decline in Houston
Most markets performed well last week, but the Houston market did see a decline. Over the past month, rates have fallen about 4% coming out of Houston, likely because of a slowing oil market in Texas. Lanes with falling rates included Memphis to Chicago, which fell 12¢ to $2.29/mi. and Los Angeles to Seattle, where rates dropped 11¢ to $2.78/mi.