Freight Futures lanes to watch today: Eastern Region
The spot National futures contract (FUT.VNU201910) settled fractionally higher by 0.1% to $1.429 per mile. Both the West regional (FUT.VWU201910) and South regional (FUT.VSU201910) contracts settled lower by 0.1% and 0.7% to $1.599 and $1.287, respectively. The East region (FUT.VEU201910) continues to strengthen and closed higher at $1.460.
The fundamental shift in trade flow to the East Coast caused by the ongoing trade war with China continues to be the story. Wednesday’s market was driven by a rise in all three of the East regional lanes and the increases are being supported by the tender rejection levels in the market (VOTRI) as depicted in the accompanying chart. The CHI to ATL contract (FUT.VCA201910) rose 1.2% to settle at $1.866. Similarly, the ATL to PHI contract (FUT.VAP201910) climbed 1.4% to $1.568 and the PHI to CHI contract (FUT.VPC201910) settled up 0.6% to $0.947. Meanwhile, the lanes in the West and South declined across the board. The LAX to DAL contract (FUT.VLD201910) was the biggest decliner during Wednesday’s trading session, falling 1% on the day to $1.716.