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MFW Social Posts
October 22, 2021
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Contract rates are catching up with spot rates. Per DAT Freight & Analytics the national average contract van rate in September was $2.85 per mile, which is up $0.03 from August and is now equal to the national average spot van rate. Contract rates are historically lower than spot rates in times of high shipping demand because it guarantees carriers ‘X’ amount of volume for an extended period of time. In times of low shipping demand spot rates often dip down below contract rates. The last 18 + months of extremely high demand has caused the contract carriers to start looking around at the overall market and raise their rates. Higher costs of labor have a lot to do with this as well. Does this DAT Freight & Analytics data align with what our fellow transportation professionals are seeing in the marketplace? Ship Smarter. MFW |