We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Did you say $5.15 a mile?
Forward Thinking

Did you say $5.15 a mile?

July 25, 2018
Mark Solomon
No Comments

It will never be cheap to transport a load by truck from the United States' Pacific Northwest to the Florida Keys with a must-arrive date just three days from pickup. But it's hard to imagine a shipper willing to pay US$5.15 a mile, with a 22 percent fuel surcharge on top of that.

But according to Charles W. Clowdis Jr., a long-time transportation executive and consultant, a shipper recently paid its broker just that to utilize one of a carrier's two-person sleeper team for the 3,178-mile trip, which can be made in about 48 hours on Interstate 90. Clowdis, who runs his own consultancy, said he knows the broker but won't disclose the name. The shipment was picked up on July 13 and delivered on July 16, he said.

Clowdis said he didn't know the name of the carrier, shipper, or the consignment. However, he said that the freight was insured for about US$2.5 million, that it was hauled by the carrier's top sleeper team, and that it may have been bound for an international destination after arriving in the Keys.

The combination of the line-haul rate and fuel surcharge totaled about US$19,600, according to Clowdis' estimates.

There have been rare instances, especially during holiday weeks or periods, where rates have reached US$8-$10 a mile, depending on the circumstances of the move and the value of the consignment. However, the Spokane, Washington-Key West move took place past the most recent holiday, which was the Fourth of July.

According to Clowdis, the rate for the move demonstrates how elevated truck pricing has become in the past year as capacity becomes dearer, and rates for all moves hit levels that were inconceivable two years ago. In 2015, when the market was the opposite of today's, an identical move would have cost the shipper, at most, about US$3.50 a mile, according to Clowdis. "And that would have raised eyebrows then just as US$5.15 a mile would today," he said.

 

Logistics
    • Related Articles

      What can 83 cents an hour buy you? A UPS-Teamster contract

      2014: A rewarding year for U.S. logistics

      A tale of transition

    Mark Solomon is executive editor—news at DC Velocity, a sister publication of CSCMP's Supply Chain Quarterly.

    Recent Articles by Mark Solomon

    Freight rate spikes shaking up the C-suite

    DHL unit tests program to manage returns of cross-border e-commerce

    U.S. ports want tariff exemption on purchases of Chinese-built cranes

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Report: Sagging freight stats show that trucking sector is returning to its historic mean

    • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

    • Heavy transport across two continents

    • Survey: most Americans unaware that truckers face shortage of parking spaces

    • Supply chain executives not yet seeing expected results from technology investments

    Featured Video

    20221107korber large vs

    Enhancing Customer Experience with Your Supply Chain Strategy

    Viewer Contributed
    With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

    FEATURED WHITE PAPERS

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    • Five tips for parcel success in 2023

    • Guide to Pallet Rack Safety

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing