This Week in Freight

October 10, 2024

Well off the bottom of the market, which occurred at $2.89 per mile, linehaul rates inbound to central FL continue their march (pictured above). Please remember the following information: Given the impending arrival of Hurricane Milton following Hurricane Helene, there is likely to be an increased demand for refrigerated vans heading toward the SWFL region. A hurricane hitting the projected area where Milton is expected to land could result in catastrophic damage, particularly as the region has not experienced a direct hit in over 100 years, and building codes were not as strict as they are now. Older buildings, which have yet to be tested to the extent that Milton will test them, may suffer additional damage. If that happens, demand will surge to replace everything from food supplies to building materials.

While this newsletter does not provide structural advice, it is important to note that the increased demand for equipment will lead to an excess supply of trucks seeking outbound freight from central FL, which may result in discounts in the spot market for those with outbound freight from the area. Furthermore, as the storm lands, many carriers will carefully assess the number of tractors moving at contract rates. Depending on the storm's severity, force majeure clauses could be triggered, affecting inbound FL load tenders at pre-hurricane contract rate levels. Carriers' operating assets and brokerages would do well to test key market rates daily using MPact.RatePro and adjust “haul” versus “hire” load plans.

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