Reefer Report: Demand rises in flood-stricken Kentucky – DAT Freight & Analytics


Reduction efforts are underway with the lethal floods that came about in Kentucky in late July, and refrigerated trailers are a big a part of any catastrophe restoration effort. Rainfall estimates confirmed that 14 to 16 inches fell throughout a five-day interval, starting on July 27. An emergency declaration was issued on July 28 due to the appreciable injury and financial loss ensuing from the flooding in jap Kentucky. Kentucky Transportation Secretary Jim Grey additionally issued an order to exempt business drivers from numerous rules. If a business car is helping with catastrophe efforts they’re exempt from hours of service, exempt from permits for chubby and over-dimensional automobiles, and having to cease at weigh stations. 

On Friday, President Joe Biden accredited the Kentucky catastrophe declaration and ordered federal support to complement commonwealth and native restoration efforts within the areas affected by extreme storms. Governor Andy Beshear stated throughout a Saturday press replace that 18 tractor-trailer truckloads of water had been en path to Kentucky as a part of a FEMA response. Many non-profit companies are working onerous to assist to offer provides such because the American Logistics Help Community and Vans with Room to Spare

ALAN is an industry-wide group that exists to offer provide chain help to catastrophe aid organizations (and different non-profits). In keeping with ALAN, research present that as much as 80 p.c of their disaster spending goes to logistics. Shelli Conaway-Waugh, CEO of nonprofit Vans with Room to Spare, stated “At present, we’re working with different nonprofits, group teams, and enterprise house owners to gather and transport what provides we are able to get into the world,” she stated. “We’d like drivers to assist transport hundreds. As this progresses, there can be extra assist requests for transportation.” 


All charges cited beneath exclude gasoline surcharges except in any other case famous.

Regardless that growers had hassle getting onto flood-soaked fields to reap watermelons final week, truckload capability in Southwest Indiana and Southeast Illinois was briefly provide final week. Reefer linehaul charges within the Bloomington, IL, market surged, rising by $0.74/mile to a median of $3.36/mile. Regionally spot charges had been up $0.15/mile to $2.19 final week. Hundreds from Bloomington, IL, to Atlanta averaged $3.27/mile final week, which is $0.45/mile larger than July, whereas hundreds east to Boston had been flat at $2.50/mile. 

Reefer spot charges in San Diego elevated by $0.38/mile final week to a median of $3.22/mile following July’s 22% m/m enhance in reefer imports. In keeping with PIERS, Banana imports dominate the inbound container market at 75%, with the vast majority of quantity coming from Ecuador, the place reefer volumes had been up 72% final month. In Fresno, produce volumes had been up barely final week, however outbound charges remained flat at $2.33/mile after dropping for the prior three weeks. On the East Coast in Elizabeth, NJ, reefer capability tightened following the 26% m/m enhance in load put up volumes – spot charges elevated by $0.13/mile to $1.88/mile and up by virtually the identical quantity to $2.03/mile for hundreds to Lakeland, FL. Hundreds from Elizabeth to Atlanta had been up $0.15/mile to $1.93/mile final week. 

The record-breaking warmth wave baking the East Coast and Central West in the mean time is retaining reefer demand elevated following final week’s 5% w/w enhance in load put up volumes. Service tools posts had been flat the earlier week, though nonetheless at record-high ranges for the beginning of August. On account of larger load put up volumes, the reefer load-to-truck (LTR) ratio elevated barely to 7.76.

In comparison with the earlier week, final week’s reefer linehaul fee elevated by simply $0.02/mile to a nationwide common of $2.26/mile. Reefer spot charges are at present $0.54/mile decrease than the earlier yr and $0.08/mile larger than the place reefer spot charges had been in 2018, however $0.34/mile larger than the pre-pandemic common for this time of the yr.


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