Produce season pushes shippers to reevaluate rates, contracts

Temperatures are rising steadily throughout the Southeast, and that can only mean one thing: produce season. As farmers prepare for harvest, shippers should ready themselves for the seasonal rate increases and capacity shortages that accompany fresh fruits and veggies each year.. This year that means preparing for prices to continue climbing and continued strained capacity. 

“Generally, we will notice capacity tightening as we see seasonal, higher-paying loads increase. We usually recognize this...

https://www.freightwaves.com/news/produce-season-pushes-shippers-to-reevaluate-rates-contracts

Heated produce season may further freeze capacity

This summer is shaping up to deliver a very strong season for produce. With capacity as tight as it is now, many industry leaders are speculating that any difficulty in sourcing refrigerated trailers may impact the dry van segment as well, considering the ongoing effort supply chains are making to replenish inventory amid freight network imbalances.

“Currently, there is no indication of either demand slowing or supply increasing,” said Sean Burke, chief commercial officer at Echo Global Logistics

https://www.freightwaves.com/news/heated-produce-season-may-further-freeze-capacity

White Paper: Produce Season Outlook Keeps Industry on its Feet

Many FreightWaves analysts and industry leaders are calling for a very strong produce season. Harvesting season typically spurs the elevated demand for refrigerated trailers this time of year, alongside the uptick in bottled drink consumption as Americans begin spending more time outside. But the shared opinion of many in logistics is that this could be a record year. After dealing with COVID-19 for over a year, eagerness to resume daily living, coupled with stimulus payments, have resulted in...

https://www.freightwaves.com/news/white-paper-produce-season-outlook-keeps-industry-on-its-feet

Produce season comes early?

Chart of the Week:  Reefer Outbound Tender Reject Index – USA, USDA Produce Truckload Spot Rate – Los Angeles to Dallas, Reefer Outbound Tender Reject Index – Los Angeles SONAR: ROTRI.USA, AGRATE.LAXDAL, ROTRI.LAX

It is widely known at this point that the winter plunge that hit the central U.S. a couple of weeks ago sent shockwaves through trucking networks that are still being felt throughout the country. As dry van capacity has somewhat started to recover, reefer capacity has become even more...

https://s29755.pcdn.co/news/produce-season-comes-early

Temperature tracking ‘a no brainer’ to combat food spoilage and claims

White reefer truck driver on highway under clear blue sky

As produce season approaches, it’s impossible not to reflect on last year’s food-related cargo losses and shortages, whether from meat plant closures, dumped milk or panic shopping

Additionally, capacity remains tenuous for the refrigerated trailers that haul the produce, so any volatilities or seasonal pressures, like the expected market increase of produce season, will have a larger impact than during a more traditional year. As seen in the SONAR chart below, reefer carriers are currently...

https://www.freightwaves.com/news/temperature-tracking-a-no-brainer-to-combat-food-spoilage-and-claims

The Daily Dash: Red-hot produce rates; Nikola assembly plant moves forward

Produce freight rates skyrocketing

The Daily Dash is a quick look at what is happening in the freight ecosystem. In today’s edition, truckload carriers hauling produce are enjoying rates that are abnormally high for December. Plus, construction continues on Nikola’s electric truck assembly plant, and warehouse space remains red-hot.

Produce price shock

This may not be peak produce season, but for produce shippers, you wouldn’t know it. Produce truckload spot rates have reached levels never before seen in the marketplace.

Zach...

https://www.freightwaves.com/news/the-daily-dash-red-hot-produce-rates-nikola-assembly-plant-moves-forward

Good signs for trucking from produce?

Chart of the Week: USDA Produce Truckload Rate – San Francisco to Chicago, Reefer OUtbound Tender Rejection Index – California SONAR: AGRATE.SFOCHI, ROTRI.CA

The year’s headlines to date have centered around panic and disorder. Anyone perusing social media can see a slough of memes pointing out what a disaster of a year 2020 has been thus far. This article will point to one area that is actually having a better year – the produce trucking sector.

“Produce season” is a reference to the moving...

https://s29755.pcdn.co/news/good-signs-for-trucking-from-produce

Reefer capacity begins to tighten; could van follow?

Chart of the Week: Reefer Outbound Tender Rejection Rate, Van Outbound Tender Rejection Rate – USA SONAR: ROTRI.USA, VOTRI.USA

The freight market is still reeling from the economic mess created by the COVID-19 pandemic, but reefer tender rejection rates have been on the rise since bottoming in late April around 3.8%—now sitting around 5.56%. Dry van rejection rates have yet to make a meaningful movement since bottoming around 2.6% in mid to late April. Could the increase in reefer tender...

https://s29755.pcdn.co/news/reefer-capacity-begins-to-tighten-could-van-follow