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Truckload Spot Rates Soar in Immediate Aftermath of Harvey’s Gulf Rampage

Posted September 06, 2017

Under Economic Issues, Logistics & Supply Chain Issues

(Mark B. Solomon – DC Velocity)

To no one’s surprise, truckload spot, or non-contract, rates spiked during the week Hurricane Harvey unleashed its fury on Houston and the Texas and Louisiana Gulf coasts.

Also to no one’s surprise, diesel fuel prices jumped over the past week as Harvey blitzed the heart of the U.S. petroleum-refining industry and disrupted the flow of supply. According to weekly data from the U.S. Energy Information Administration (EIA) released this evening, average nationwide diesel prices effective today climbed to $2.75 a gallon, a 15-cent-a-gallon increase from Aug. 28 figures. The biggest increase occurred in the Gulf Coast region, which posted a near 19-cent-a-gallon jump from the prior week. EIA, a unit of the Department of Energy, breaks down its fuel reporting data by regions.

According to DAT Solutions, a spot-market load-board provider, rates soared on loads being moved into several emergency-supply staging locations in the vicinity of the affected areas. For example, the seven-day average spot dry van rate from Dallas to Seguin, Texas, a staging area about 30 miles from San Antonio, climbed to $858 for the 248-mile haul, according to DAT data released today. By contrast, that same haul in July averaged $577, according to DAT. In some cases, loads were being booked at $1,350. Only two business days of post-Harvey data were included in most recent data sets, DAT said. Click here to read more.