About 84% of U.S. adults are anticipated to spend a file $35.7 billion this coming Mom’s Day, representing a rise of $4 billion from 2022’s file spending, in keeping with the Nationwide Retail Federation (NRF). Their just lately launched annual survey signifies customers plan to spend a median of $274.02 on Mom’s Day gadgets. Whichever method you have a look at it, $35.7 billion is numerous freight, and utilizing NAICS codes to transform retail income into tons equates to nearly 200,000 truckloads utilizing $12,000/ton as a tough information.
The highest three present classes this yr are greeting playing cards (74%), flowers (74%), and particular outings (60%). Flower gross sales are anticipated to be at an all-time excessive this yr, straight impacting this Mom’s Day freight market. In consequence, refrigerated carriers ought to see elevated demand for South American flowers, which predominantly arrive in Miami.
As was the case with Valentine’s Day, this week is the height transport week for flowers forward of Mom’s Day, with most exercise centered in Miami, simply 3.5 hours flying time from the place most Valentine’s Day roses are grown. In line with the USDA, in 2022, 58% of rose stems have been imported from Columbia and 29% from Ecuador, with 82% touchdown at Miami Worldwide Airport (MIA) earlier than being trucked all around the U.S. and Canada. A further 4% are shipped by way of West Coast airports, together with Los Angeles, Lengthy Seashore, and San Diego.
Market Watch
All charges cited beneath exclude gas surcharges except in any other case famous.
Accessible dry van capability continues to tighten in produce-growing areas as capability migrates to higher-paying a great deal of fruit and greens within the Southeast, Southwest, and West Coast areas. Spot charges in Florida averaged $1.25/mile final week, and regardless that outbound charges have elevated by round $0.12/mile within the earlier month, they continue to be $0.02/mile decrease than in 2019. Common charges within the Southeast, at $1.77/mile, have been up $0.02/mile w/w and $0.05/mile greater than in 2019. Spot charges in Atlanta elevated for the fourth week to $1.66/mile, up $0.06/mile within the final month.
After lowering because the begin of the yr, outbound spot charges in Illinois reversed course final week, growing by a penny-per-mile to $1.92/mile on 12-15% decrease quantity. Good points have been reported in Chicago and Joliet markets, the place charges elevated by $0.02/mile to $1.87/mile and $1.91/mile, respectively. Within the logistics capital of the U.S. in Memphis, charges have been up by $0.01/mile to $1.83/mile after dropping within the earlier three weeks. On the West Coast, outbound spot charges in California elevated by $0.04/mile to $1.88/mile, now $0.05/mile greater than in 2019. Spot charges elevated in Ontario and Los Angeles for the fourth week to $1.72/mile and $1.63/mile, respectively.
Within the Northeast, outbound capability was mulch tighter final week in Maine and New Hampshire, with charges as much as a two-state common of $2.15/mile, a rise of $0.13/mile within the final week, and decrease by the identical quantity in comparison with 2018.
Load-to-Truck Ratio (LTR)
Following the 12% w/w increase in quantity on the finish of April, volumes retreated final week, erasing all the prior week’s positive factors. Load and tools posts are round 8% greater than in 2019, ensuing within the dry van load-to-truck ratio (LTR) lowering from 2.21 to 1.84, nearly similar to 2019.
Linehaul Spot Charges
Dry van linehaul spot charges have been flat once more final week and have been round this degree for the previous three weeks. Since load put up volumes have been 12% decrease final week, it appears extra just like the dry van market has discovered the underside. At $1.62/mile, excluding gas, the nationwide common dry van fee is holding round $0.10/mile above 2019 ranges. Primarily based on the amount of masses moved, the typical fee for the highest 50 dry van lanes was $0.21/mile greater at $1.83/mile final week.
