Dry Vans Haul Emergency Supplies to Re-Stock Store Shelves

By Peggy Dorf, DAT Solutions

 

Got hand sanitizer? Canned soup? What about toilet paper? No? Well, get in line. Literally.

Costco is one of the chains that has enjoyed high traffic in recent weeks, as consumers wait in long lines to purchase emergency supplies. Individual stores have started to limit the number of popular items that each shopper can take home, while the chain continuously replenishes stocks of bottled water, cleaning products, tissues, paper towels, and shelf-stable foods, according to a report in Forbes magazine. For the time being, consumers' hoarding behaviors could boost demand for dry van equipment, benefiting carriers and logistics companies of all sizes.

Many retailers and manufacturers built up inventories last year, to get ahead of reciprocal tariffs with China, Those companies have a cushion that can carry them through this surge in demand for most products. If Chinese factories don't return to full production soon, or if the coronavirus threat causes U.S. consumers to stay home, however, those same retailers may face hard times this spring, says The Wall Street Journal.

While Chinese factories are slowly coming back online, some goods are getting held up because of a truck driver shortage—not in the U.S., but in China. A bounce-back in May could drive imports up more than 9% year over year in May, however, according to the National Retail Foundation, as quoted by MarketWatch.

Those trends could add up to a busy spring for vans, with some quiet periods between now and the end of May. For now, spot van prices are trending up seasonally, with more lane rates rising than falling.

• Atlanta to Columbus added 10¢ to $1.53 per mile, but Columbus to Atlanta lost 2¢ to $1.92. That's a net gain, but still not great.
• Chicago to Los Angeles hit $1.56 per mile, up 9¢, and L.A. to Chicago slipped 2¢ to $1.20. A lot of miles for not a lot of money.
• Dallas to Houston jumped 9¢ to $2.09, and Houston to Dallas got a 4¢ boost, to $1.93.
• Memphis to Charlotte rose 7¢ and Charlotte to Memphis dropped 4¢ to $1.49 per loaded mile.

Some of the lanes that lost traction last week weren't paying all that well, to begin with. Here are a few to avoid, if you can.

• Dallas to Laredo rates fell 7¢ to $1.18, and Laredo to Dallas held steady at $2.09.
• Denver to Phoenix dropped 7¢, as well, to $1.28 per loaded mile, while Phoenix to Denver edged down 2¢ to $1.90. (Loads picking up in the center of Phoenix could pay more.)
• Stockton, CA, to Salt Lake City fell 9¢ to $2.05 per mile, and Salt Lake City to Stockton lost 4¢ to $1.47.
• Buffalo to Charlotte fell 6¢ to $1.80 and the return trip from Charlotte to Buffalo dropped 4¢ to $2.16 per mile.