Flatbed Market Tightens, Reefer Rejection Rates High
What happened
Flatbed spot rates are rising to $2.33/mi, while reefer rejection rates are at 25%, creating opportunities on those lanes.
Why it matters
Flatbed demand is up due to increased construction and energy sector activity, particularly in Texas and the Southeast. This is putting upward pressure on rates as capacity tightens. Reefer rejection rates are elevated because of produce season in California and Arizona, coupled with stricter food safety regulations. Shippers are struggling to find carriers willing to meet the requirements at current rates. Spot rates could climb even higher if diesel prices continue their recent ascent, further incentivizing drivers to seek the most lucrative lanes. Monitoring fuel costs and factoring them into your rate negotiations is crucial.
Key numbers
- Flatbed spot rates are rising to $2.33/mi, while reefer rejection rates are at 25%, creating opportunities on those lanes.
What happens next
- Spot rates could climb even higher if diesel prices continue their recent ascent, further incentivizing drivers to seek the most lucrative lanes.
Sources
Quick answers
What happened in Flatbed Market Tightens, Reefer Rejection Rates High?
Flatbed spot rates are rising to $2.33/mi, while reefer rejection rates are at 25%, creating opportunities on those lanes.
Why does Flatbed Market Tightens, Reefer Rejection Rates High matter?
Flatbed demand is up due to increased construction and energy sector activity, particularly in Texas and the Southeast. This is putting upward pressure on rates as capacity tightens. Reefer rejection rates are elevated because of produce season in California and Arizona, coupled with stricter food safety regulations. Shippers are struggling to find carriers willing to meet the requirements at current rates. Spot rates could climb even higher if diesel prices continue their recent ascent, further incentivizing drivers to seek the most lucrative lanes. Monitoring fuel costs and factoring them into your rate negotiations is crucial.
