FREIGHT RATES UNPRECEDENTED FOR APRIL 2022
We said that this day may come last month, but we are still shocked that it has arrived. In a world where diesel prices are at record highs, it appears the cost of keeping goods in reefer units cooled is no longer worth the price, as reefer hauling has been dethroned as the most lucrative form of freight, perhaps for the first time in freight history!
APRIL 2022 NUMBERS
According to DAT:
- Dry van hauling averaged $2.80 per mile, a 22-cent decrease from March 2022.
- Flatbed hauling increased by a penny to $3.41 per mile.
- Reefer decreased a quarter per mile to $3.15.
- The average decreased from $3.27 to $3.12 per mile.
There you have it, flatbed hauling now averages a higher rate than reefer hauling.
Many potential explanations may exist to explain this phenomenon, but the most basic and most likely explanation is that demand for goods typically hauled by flatbeds (such as construction materials) is surging. As housing prices continue to be high, construction is a very lucrative business at the moment, and builders are willing to pay a premium to get the job done as soon as possible.
The Bottom Line
Now that the day of shifting has finally come, it will be interesting to see how the hauling markets across the nation shift in response to flatbed being king. In a perfect market, truckers would make the switch instantaneously and the rates would drop due to competition, but with trailers of all types becoming harder and harder to find, those who have a spare flatbed or two lying around will find themselves at an advantage.
With flatbed hauling higher than reefer hauling by 25 cents, it is anyone’s guess as to when the trend will reverse and reefer hauling will be king once again.
If you are in the market for a flatbed trailer, or even a dry van or reefer in hopes of taking advantage of reduced prices now to make more money when prices rebound, Go Capital can leverage its expertise to get you the best rate for your credit scenario. Read below for more information.
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