Truckload spot rates across the southeastern U.S. are rising sharply in response to back-to-back hurricanes. After Hurricane Helene ravaged parts of Florida to North Carolina, the trucking market experienced significant disruption. Now, as Hurricane Milton approaches the Gulf Coast of Florida, spot rates are climbing even higher.

Last week saw nationwide increases in spot rates for dry-van, refrigerated, and flatbed shipments, with the Southeastern region hit hardest by the recent storms. Dry-van rates rose by 3 cents per mile, refrigerated rates increased by 1 cent, and flatbed rates went up by 1 cent, according to DAT Freight & Analytics. The aftermath of Helene, which left extensive damage, including destroyed bridges and roads, has slowed freight movement, tightening trucking capacity.

Inbound and outbound linehaul spot rates in the Southeast increased by an average of 10 cents per mile, particularly in regions from western Florida to Tennessee and North Carolina. For example, rates in the Atlanta freight market rose by 7 cents, despite a 3% drop in load volume.

The effects of these hurricanes are reminiscent of the 2017 hurricane season when Harvey and Irma severely constrained truck capacity and drove prices up across the U.S. The current market might follow a similar trend, with tight capacity and rising demand accelerating spot rate hikes.

Shippers are also rushing to get goods into Florida before Hurricane Milton hits, further straining capacity and driving prices up. Lakeland, Florida, a key distribution hub, has seen inbound refrigerated rates jump 16 cents, reflecting the pre-hurricane surge in shipments.

 

Source: www.joc.com