Freight Futures Daily Curve: 12/30

Freight Futures data to watch today: Weekly Spot Settlement Changes

Although it was an abbreviated trading week for Tucking Freight Futures due to the Christmas holiday, there was a good deal of week-to-week (w/w) volatility, particularly in the East region. For the week, the spot National contract (FUT.VNU201912) rose $0.01,2 or 0.8%, to settle at $1.531/mile. The primary catalyst was the East regional contract (FUT.VEU201912), which jumped $0.033 or 2.1% to end the week at $1.603. Chipping in as well was the West regional contract (FUT.VWU201912), which settled 0.4% higher to $1.674. Feeling a bit of selling pressure was the South regional contract, which slipped 0.23% for the week and ended at $1.316.

The lanes in the East continued to dominate the spotlight. The star for the week was the CHI to ATL contract (FUT.VCA201912), which surged $0.10, or 5.1%, to $2.063. Also making a significant move higher was the ATL to PHL contract (FUT.VAP201912), which gained $0.032, or 1.9%, to settle at $1.751. The PHL to CHI contract (FUT.VPC201912) slid $0.032, or 3.1%, to $0.996, giving back almost half of the 6.6% gain from the prior week.

A shift in trade flows has been cited as the driver. The LAX to SEA contract (FUT.VLS201912) in the West also enjoyed a positive week and rose $0.022, or 1.1%, to close at $2.107. This contract has 5,000 miles of open interest that are set to expire. The SEA to LAX contract (FUT.VSL201912) slipped 0.64%, ending the week at $1.242. In the South, both lanes fell, with the LAX to DAL contract (FUT.VLD201912) down 0.2% to $1.626 and the DAL to LAX contract (FUT.VDL201912) off 0.3% to $1.006.

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