Executive Briefings

Shippers Pay $0.02 More Per Mile for Vans, Reefers in November

Shippers paid their carriers an average of $0.02 per mile more to move contracted freight in vans and reefers in November, compared to October. The increase amounted to just over 1 percent of the line haul rate for each segment, according to TransCore's Truckload Rate Index. This is a notable month-over-month increase for the fourth quarter, when price movements, if any, typically do not exceed $0.01 per mile.

November's national average contract rates, of $1.44 for vans and $1.55 for reefers, represent a return to pre-recessionary levels last seen in the fourth quarter of 2008. On top of the rate increase, shippers also added $0.02 per mile to the average fuel surcharge. November's average fuel surcharge rose to $0.35 for vans and $0.37 for reefers, to compensate for soaring diesel prices.

Contract rates for flatbeds followed seasonal patterns, with a month-over-month decline of $0.02 per mile in November. Flatbed demand is typically weaker during the winter months. At an average rate of $1.62 per mile, however, shippers continue to pay more for flatbeds in 2010 than they did in the fourth quarter of 2009 or 2008. Fuel surcharges for flatbeds averaged $0.41 per mile in November.

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Shippers paid their carriers an average of $0.02 per mile more to move contracted freight in vans and reefers in November, compared to October. The increase amounted to just over 1 percent of the line haul rate for each segment, according to TransCore's Truckload Rate Index. This is a notable month-over-month increase for the fourth quarter, when price movements, if any, typically do not exceed $0.01 per mile.

November's national average contract rates, of $1.44 for vans and $1.55 for reefers, represent a return to pre-recessionary levels last seen in the fourth quarter of 2008. On top of the rate increase, shippers also added $0.02 per mile to the average fuel surcharge. November's average fuel surcharge rose to $0.35 for vans and $0.37 for reefers, to compensate for soaring diesel prices.

Contract rates for flatbeds followed seasonal patterns, with a month-over-month decline of $0.02 per mile in November. Flatbed demand is typically weaker during the winter months. At an average rate of $1.62 per mile, however, shippers continue to pay more for flatbeds in 2010 than they did in the fourth quarter of 2009 or 2008. Fuel surcharges for flatbeds averaged $0.41 per mile in November.

Read Full Article