Spot market rates steady, diesel prices rise. Hot lanes include Los Angeles to Dallas and Atlanta to Chicago.
## This week's headline
The North American freight market has seen spot market rates holding steady, with van rates typically ranging from $1.80 to $2.40 per mile, reefer rates from $2.20 to $2.80 per mile, and flatbed rates from $2.40 to $3.10 per mile. According to the Energy Information Administration (EIA), diesel fuel prices have risen by 2.4 cents to $3.194 per gallon, which may impact carrier profits and lead to increased fuel surcharges.
Diesel & fuel surcharge update
As diesel prices continue to rise, carriers can expect to see higher fuel surcharges. Typically, fuel surcharges are calculated based on the average fuel price, and with the current prices, carriers may see an increase in fuel surcharges. The EIA reports that the average diesel fuel price is 2.4 cents higher than last week, which may lead to an increase in fuel surcharges. Dispatchers should be aware of these changes and adjust their pricing accordingly.
Hot freight lanes
Several lanes have seen increased demand and higher spot market rates. The Los Angeles to Dallas lane has seen rates rise to $2.20 per mile for vans, while the Atlanta to Chicago lane has seen rates increase to $2.30 per mile. Other hot lanes include Toronto to Montreal, with rates at $2.40 per mile for vans, and Vancouver to Calgary, with rates at $2.60 per mile for reefers. The Laredo to Memphis lane has also seen increased demand, with rates at $2.50 per mile for flatbeds.
Broker spotlight & payment trends
Brokers are still reporting slow payment times, with some carriers waiting up to 30 days for payment. However, some brokers are offering quicker payment terms, such as 10-day or 15-day payment, to attract more carriers. Typically, brokers are offering rates that include accessorials, such as detention and layover pay, to compensate carriers for delays. Dispatchers should be aware of these trends and negotiate rates accordingly.
Dispatcher tip of the week
Dispatchers can optimize their route planning by using load boards, such as DAT or Truckstop, to find the best rates and lanes. They can also use tools, such as Loadlink, to find available loads and negotiate rates with brokers. Additionally, dispatchers should be aware of the hours of service (HOS) regulations and electronic logging device (ELD) requirements to ensure compliance and avoid delays. By optimizing route planning and staying compliant, dispatchers can increase revenue and reduce deadhead miles.
Frequently asked questions
**Q:** What is the current average diesel fuel price?
**A:** The current average diesel fuel price is $3.194 per gallon, according to the EIA.
**Q:** How do I calculate fuel surcharges?
**A:** Fuel surcharges are typically calculated based on the average fuel price and can be adjusted accordingly.
**Q:** What is the typical payment term for brokers?
**A:** The typical payment term for brokers is 30 days, but some brokers may offer quicker payment terms.
For more information on freight market trends and to stay up-to-date on the latest industry developments, visit EK Dispatch Academy's load board and pricing page.