TX loads to Canada

R

RK in AB

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Sep 24, 2010
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Airdrie, AB
10
Can anyone help me understand why rates out of Texas have taken such a dip? I am hearing rates as low as $5600 to go from TX to AB. They are usually up around $7000 or more. Surely our long weekend didn't cause the rates to drop.
 
My guess? A lot of that freight is normally moving intermodal anyway, shifting to OTR when there is equipment issues.

My guess is you're talking about mostly out of the Dallas area, and that rate isn't sustainable, really. My guess is that even though shippers don't want to pay even that ... that really the right rates are between $5500-$6000 depending on origin to Calgary, maybe a bit more to Edmonton. If the freight pays that much ... it's probably because there is a gong show on the rail.

I've heard there is a major glut of trucks in Texas going in pretty much any direction.
 
Texas has the same issues with produce as Florida. Certain times of the year you will get lots of freight at a great price, other times you will get some freight at an ok price. Other times the produce will be dry and there is no rate at all. During Sept, Oct and part of Nov there is very little northbound produce in TX. On the other hand, there are lots of southbound loads.

In the end, it turns out to be supply and demand. Right now there are lots of trucks in TX and no loads. People are willing to take a chance to go to AB for less than they normally do.
 
I speak mainly from a dry standpoint, but I usually find that all equipment types experience some type of swings. With produce -- that's the game. With dry, on long hauls the price swings are driven mostly by when there is a need for mode shift due to lack of capacity by IML. On flatbeds, I suspect a lot of it has to do with construction business and infrastructure building.
 
I am stuck with a driver in Austin, TX looking to get to London, ON for holidays. I'm hoping someone might have a contact or an extra load they could pass my way. I had a load but it cancelled overnight.

Please let me know if you can help out.

Thank you.
 
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