Supply

Truck Rates Declining in 2019

The U.S. Department of Agriculture (USDA) Grain Transportation Report indicates trucking cost per ton is down almost 9%, which is a welcome change from the spike in trucking rates caused by the electronic log device (ELD) rule. Although agriculture was exempted, the overall tightening in available Class 8 truck supply increased trucking rates. Dial-A-Truck (DAT) reports van spot rates in July declined 19% versus last year.  The rate decrease has occurred at the same time the American Trucking Association’s (ATA) advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 6.6% in July after falling 1.2% in June. In July, the index equaled 122.7 (2015 = 100) compared with 115.1 in June. Although trucking issues remain, such as a need for drivers, a decline in transport costs is a great help to the farmer’s bottom-line.

Alan Barrett
Alan Barrett

Director of Consulting

Farm Journal

Alan Barrett is Doane’s project consultant and accomplished commodity economist with more than 25 years of experience in futures and cash markets with a focus on cotton, commodity projects, non-traditional agricultural products, transportation and supply chain studies. Alan spent six years as a commodity futures broker. His expertise encompasses feasibility studies of oilseed crushing plants (soybean canola, and cottonseed), grain elevators, export elevators, shuttle elevators, grain container operations, flourmills and other processing facilities. Alan also has conducted transportation supply chain studies for grains, oilseeds, fertilizer, coal, natural gas, crude oil, and petroleum products. Alan has considerable experience in non-traditional agricultural products such as coal, coke, natural gas, chemicals, hydraulic fracturing fluid, hydraulic fracturing proppants, glycerin, fertilizer, micronutrients, salt, limestone, cement, iron ore, pig iron, and steel, especially feed ingredients. Mr. Barrett has a BS and MS in Agricultural Economics from the University of Tennessee.