Freight Rates Let Off Steam in August 2022

The temperature across the nation is not the only thing that is white-hot right now, freight rates have been experiencing similar extremes these last handful of months. Like the weather of the year, it appears that the rates are starting to cool down.

August 2022 Freight Rates

• Dry van decreased eleven cents to $2.53 per mile.
• Flatbed decreased the most, twenty-four cents to $3.06.
• Reefers dropped ten cents per mile to $2.90.
• Averages decreased from $2.98 to $2.83.

There are a multitude of factors as to why freight rates would be decreasing. For starters, employment within the trucking industry is at an all-time high, which would drive rates down as a larger number of fleets compete to ship the same number of goods.

The other primary reason is that shoppers are tired of dealing with inflation, and as such are holding off on discretionary purchases. This would explain why flatbed continues to be king of the road, as things that are hauled by flatbeds are generally used to construct houses, a good whose purchase rarely can be held off compared to, say, a wider flatscreen television.

There is good news, however. Unlike the temperature which cools down even further in the winter, we fully expect the freight rates to increase in the winter due to the holiday season. Consumers will be willing to spend more money on extras during Black Friday, and rates, especially with dry vans, should increase to compensate for the added demand.

Conclusion

While freight rates have been on the decline in previous months, the rates are still comparable to what they were a year ago. With supply chain shortages still ravaging the planet, there is a good chance we will see rates rebound when the country fully reopens once and for all, as demand for materials to get back in business will soar through the roof. This is all speculation, but based on what we saw when the consumer-side of the economy opened up around August 2020, it is where we are putting our chips.

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