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Spot Market Freight Rates Soar After Hurricane Harvey

DAT Solutions

Outbound volumes from Houston also fell 73%, but the rearrangement of supply chains, the difficulty of shipping in the flooded region, and increased seasonal demand in other parts of the country combined to create pockets of tight capacity that put extra pressure on truckload rates.

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Reefer Capacity Gets Tighter Ahead of Thanksgiving

DAT Solutions

Just like with dry van freight , reefer capacity tightened in the first week of November, meaning that shippers and brokers had a harder time finding trucks to move those reefer loads. Chicago to Minneapolis also climbed 21¢ to $2.76/mile. That pushed rates higher in many areas, especially out of Chicago and California.

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Is the Freight Recession Really Over?

DAT Solutions

A number of factors have led to loose capacity, though, which has kept rates from going up. A lot of lanes have been up-and-down, depending on weather changes: The lane from Rock Island, IL, to Minneapolis went from 70 degrees to snow storms late in the week -- on average, rates rose 39¢ to $2.55/mile.

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Spot Freight Volumes Get Welcomed Boost

DAT Solutions

That would’ve led to more reefer trucks competing for van freight, and the extra capacity kept rates down. Grand Rapids, MI , had a couple strong lanes despite an overall slip in volumes: Grand Rapids to Cleveland gained 50¢ at $4.12/mile. That led to an uptick in load posts on DAT load boards , but rates didn't respond.

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Major Freight Markets Saw Biggest Rate Surge of the Year

DAT Solutions

Freight patterns showed increased retail trade ahead of Memorial Day weekend, and since some drivers finished the week up early ahead of the holiday weekend, capacity also tightened. The average length of haul for produce shipments was longer last week, which soaked up extra capacity. Green Bay to Minneapolis slipped 20¢ to $1.99/mile,

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Low Reefer Demand Drags Down Van Rates

DAT Solutions

For one, lackluster contract freight volumes has led to more contract carriers putting trucks on the spot market, and the extra capacity has kept rates from rising in many places. Still, even with the extra van capacity, rates rose on 46 of the top 100 van lanes, compared to the 41 that moved lower.

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Truckload Rates Finally Catch Up to Freight Volumes

DAT Solutions

That may have caused reefer trucks to spill over into van capacity out in Charlotte , with the extra competition driving down outbound van rates. Cleveland was also showing signs of life. Lots of lanes were paying summer-like rates last week: Rock Island to Minneapolis was up â–²62¢ to an average of $2.67/mile.