Freight Futures market to watch today: Eastern regional market
The September National contract (FUT.VNU201909) settled the day 0.55% lower at $1.454 per mile on continued weakness in the East region. The spot Eastern contract (FUT.VEU201909) closed down $0.025 or 1.5% to $1.645. On a positive note, the West (FUT.VWU201909) and South (FUT.VSU201909) regional contracts both ended the day fractionally higher, at $1.494 and $1.223, respectively.
The two lanes in the East where rates were most affected by Hurricane Dorian—CHI to ATL (VCA) and ATL to PHL (VAP)—suffered a significant sell-off during the latest session. The spot CHI to ATL contract (FUT.VCA201909) fell $0.044 or 2.05% to $2.106, while the ATL to PHL contract (FUT.VAP201909) fell $0.03 or 1.6% to $1.860. Spot rates for these two lanes are rapidly heading back to pre-Dorian levels, while the drop in the CHI to ATL forward curve (FWD.VCA) shows a more systemic correction for that lane, with the entire curve shifting lower across each month by an average of about $0.03 per mile. Shielded from the sell-off in the East, the PHL to CHI contract (FUT.VPC201909) held its own on the strength of market fundamentals and settled unchanged at $0.971.