Spot truckload rates are surging in the U.S. Southeast and climbing across the country following Hurricane Helene, with another storm, Hurricane Milton, set to strike the Gulf Coast of Florida soon. Milton is expected to hit Wednesday before crossing the state into the Atlantic.
Last week, rates for dry-van, refrigerated, and flatbed trucks increased nationwide as a result of the widespread damage caused by Helene, which severely impacted areas from Florida to North Carolina. The Category 4 storm claimed over 230 lives, destroyed infrastructure, and caused significant disruptions, including damage to bridges, roads, and sections of Interstate 40.
This devastation has slowed the U.S. freight network, reduced trucking capacity, and driven up spot rates. Dean Croke, principal analyst at DAT, explained that the rate increases are not due to a lack of trucks but because the available trucks are moving at a slower pace. “Loads posted dropped, but rates went up, which isn’t typical for an over-supplied market,” Croke said.
Last week, the average dry-van spot rate in the U.S. rose by 3 cents to $1.65 per mile, while refrigerated rates increased by 1 cent to $1.97 per mile. Flatbed rates also saw a 1-cent rise, reaching $2 per mile. However, the Southeastern U.S., which bore the brunt of Helene, experienced more significant changes. Linehaul spot rates for both inbound and outbound freight increased by an average of 10 cents per mile, with the Atlanta market seeing a 7-cent rise to $1.53 per mile.
The surge in spot rates and the arrival of two hurricanes is reminiscent of the 2017 season when Hurricanes Harvey and Irma tightened truck capacity across the U.S. and drove prices up. A similar pattern is emerging this year as Helene and Milton strain capacity, with pricing expected to continue climbing as the truckload market nears supply-demand equilibrium.
According to Truckstop.com and FTR Transportation Intelligence, last week’s pricing jump marked the sharpest increase in truckload spot rates for this period (Week 40) since 2008. Excluding fuel surcharges, spot rates in Truckstop’s system were up about 11% compared to the same week last year, with dry-van rates rising by more than 7 cents per mile from the previous week.
In addition, total load activity increased by 7.6%, with dry-van loads up by 8.4% and flatbed volume rising by 7.9%, based on Truckstop and FTR’s weekly report.
As Hurricane Milton approaches, shippers are scrambling to move goods into Florida before the storm hits, further tightening capacity and pushing rates higher. “There’s always a rush to get freight into areas where a hurricane is expected to make landfall,” said Croke. “Afterward, things get even more hectic.”
Lakeland, Florida, a major distribution hub east of Tampa and close to Milton’s expected landfall, is one of the key destinations for freight. Inbound reefer rates for the Atlanta-to-Lakeland route jumped by 16 cents last week, reaching $3.19 per mile with a 7% increase in volume. The surge in inbound rates is also due to low outbound demand from the region, with only one load leaving Lakeland for every five that arrive.
Source: www.joc.com