Market Report

North American Freight Update

Spot-market rates remain stable, van rates average $2.10/mi, while diesel prices rise to $3.23/gal, impacting fuel surcharges

## North American Freight Market Overview The North American freight market has experienced a relatively stable week, with spot-market rates for vans, reefers, and flatbeds remaining within typical ranges. According to DAT, the overall spot-market rate for vans averaged $2.10 per mile, while reefers averaged $2.40 per mile, and flatbeds averaged $2.70 per mile. These rates are in line with expectations for this time of year, with the peak summer shipping season just beginning. In most cases, carriers are seeing rates similar to last year, with some lanes experiencing higher demand due to seasonal fluctuations.

Diesel Prices and Fuel Surcharges Diesel prices have continued to rise, with the U.S. Energy Information Administration (EIA) reporting a national average diesel price of $3.23 per gallon, up $0.05 from last week. This increase is expected to lead to higher fuel surcharges, which will likely be passed on to shippers. Typically, fuel surcharges range from 10% to 20% of the total freight bill, depending on the carrier and the specific route. Carriers should be aware of these changes and adjust their pricing strategies accordingly to maintain profitability.

Hot Freight Lanes and Capacity Several freight lanes are experiencing high demand and tight capacity this week, including: - Los Angeles to Dallas, with rates averaging $2.20 per mile for vans and $2.60 per mile for reefers - Atlanta to Chicago, with rates averaging $2.10 per mile for vans and $2.40 per mile for reefers - Vancouver to Calgary, with rates averaging $2.30 per mile for vans - Laredo to Memphis, with rates averaging $2.15 per mile for flatbeds Dispatchers should be aware of these hot lanes and adjust their load searching strategies to take advantage of the higher rates.

Broker Spotlight and Payment Trends This week's broker spotlight is on a major retailer that is experiencing a surge in freight volumes due to summer promotions. The broker is offering competitive rates and quick payment terms to attract carriers, with payments typically made within 7-10 days of delivery. In most cases, brokers are offering 2% to 5% accessorials for services such as detention, loading, and unloading. Carriers should carefully review payment terms and accessorials before accepting loads to ensure they are getting paid fairly for their services.

Dispatcher Tips and Best Practices Dispatchers can increase their chances of finding high-paying loads by using online load boards such as Truckstop and Loadlink. These load boards provide real-time information on available loads, rates, and capacity, allowing dispatchers to make informed decisions quickly. Additionally, dispatchers should be aware of the Hours of Service (HOS) regulations and Electronic Logging Device (ELD) requirements to ensure compliance and avoid costly fines. For more information on improving dispatching skills and staying up-to-date with industry trends, dispatchers can visit EK Dispatch Academy's resources.

Industry Outlook and Future Trends As the freight market continues to evolve, dispatchers and carriers should stay informed about the latest trends and regulations. The FMCSA and Transport Canada provide resources and guidance on current rules and regulations. Dispatchers should also be aware of the impact of diesel prices and fuel surcharges on their operations and adjust their strategies accordingly.

Frequently asked questions **Q:** What is the current rate range for van spot-market rates? **A:** Typically, van spot-market rates range from $1.80 to $2.40 per mile, depending on the lane and capacity. **Q:** How do I know if I am getting paid fairly for my services? **A:** Carriers should carefully review payment terms and accessorials before accepting loads to ensure they are getting paid fairly for their services. They should also be aware of the market rates for their specific lane and equipment type. **Q:** What is the best way to find high-paying loads and improve my dispatching skills? **A:** Dispatchers can use online load boards such as Truckstop and Loadlink to find high-paying loads. They should also be aware of the current market trends and hot freight lanes to increase their chances of finding high-paying loads.