What are DAT spot rates now in comparison to where they were?
Dry vans have 6.7 available loads per truck, with rates up 12 cents to $2.09 per mile.
Where are the prices projected to go?
According to the Stifel Capital Markets reseearch, within the next three quarters, there should be a 5% to 10% jump in contract pricing
Why is this?
FEMA relief efforts for Hurrican Harvey and Irma are increasing demand for trucks. Capacity is extremely tight, especially in the Pacific Northwest, which is having a ripple effect throughout the country
Why is capacity so tight in the Pacific Northwest?
Hurricane Harvey rerouted a lot of port traffic from Houston to Seattle. The PNW is not used to this high of demand, and drivers are having to come long distances to meet it, leaving other areas tight as well.
What can I expect in the future?
Stifel Capital Markets recently analyzed the freight marketplace in the wake of the hurricanes. In one of their research briefs, they reported, “Add in the normal retail seasonal peak, the e-commerce surge at the end of the year, and the implementation of the ELD [electronic logging device] mandate on December 18, and we have a recipe for a prolonged period of elevated demand, strong spot rates, and sizable mid- to high-single digit contract price hikes.”