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 2023
    • 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 2023
    • 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

    • Walmart to open fifth “next-gen” fulfillment center in 2026

    • 53% of procurement leaders expect to increase their spending in 2024

    • U.S. faces permanent labor shortage, says University of Tennessee economist

    • Pepsi exec highlights four key structural changes in the supply chain

    • What skills will you need in the Age of AI?

    Featured Video

    Edge2023 innovationtheater here technologies

    CSCMP EDGE 2023 Innovation Theater: Enabling Peak Performance in Last-Mile Delivery Through Private Mapping and Custom Routing - HERE Technologies

    CSCMP EDGE 2023
    At HERE Technologies, we understand the hypercompetitive world of e-commerce, retail, and parcel delivery is increasing in complexity every day. End customers demand ever-increasing delivery performance levels regarding on-time arrivals, flexibility in delivery schedules, pricing and payment options, and more....

    FEATURED WHITE PAPERS

    • Balancing Act: How Freight Brokers Help Shippers Navigate Uncertainty

    • Quarterly Freight Data Report: Q3 2023

    • A Brighter Future: How COVID-19 Continues to Change Freight Procurement Strategies for the Better

    • Five questions to ask before electrifying your indoor forklift fleet

    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