Reefer Report: It’s “crush” season in California – DAT Freight & Analytics


Fall is the busiest time of the 12 months in Central California; employees on the vineyards and wineries hurry to select grapes. The height season lasts from August till October, however some grape varieties will be harvested as late as December. However this season could also be slightly completely different – grape costs are anticipated to be a lot increased following the estimated 25 million packing containers of grapes misplaced because of Hurricane Hillary. The impression on reefer truckload quantity is already evident. Based on the USDA, the overall truckload quantity in California is the bottom in seven years and is already round 7% decrease than final 12 months. 

That is value waiting for reefer carriers, particularly these counting on California loadings of grapes throughout peak loading season from now to the tip of November. Not like the primary 4 months of the 12 months, when slightly below half of the grape manufacturing comes from Chile and Peru through the Port of Philadelphia, the same quantity was produced in California within the fall of 2022. Virtually 100% of grape manufacturing got here from the San Joaquin and Coachella valleys in August, September, and October final 12 months. The USDA is reporting an ample provide of vehicles in each areas, however with the remaining 4 produce-growing areas in California reporting a slight surplus of vehicles final week, capability may loosen within the grape-growing areas, forcing spot charges down even additional. 

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Market Watch

All charges cited under exclude gasoline surcharges until in any other case famous.

After dropping for the prior three weeks, outbound reefer charges in Laredo, the biggest border-crossing market alongside the southern border, elevated by $0.06/mile final week to $1.62/mile, boosted by a 32% w/w improve in load put up quantity. Within the bigger reefer spot market in McAllen, within the Rio Grande Valley, load put up volumes jumped by 22% w/w, however with a surplus of obtainable capability, outbound charges decreased by $0.10/mile to $1.61/mile final week. 

Within the Pendelton, OR, reefer market, spot charges elevated for the fourth week to $1.93/mile following final week’s $0.02/mile improve, although load put up volumes have been flat final week. In Twin Falls, ID, the second-largest reefer spot market within the Pacific Northwest (PNW), spot charges dropped $0.08/mile to $2.07/mile on an 8% decrease load put up quantity final week. Within the Midwest’s Joliet and Chicago markets, reefer masses paid carriers a median of $ 2.38/mile, down $0.15/mile within the final two weeks following final week’s $0.04/mile lower.

Load to Truck Ratio (LTR)

Regardless that reefer load posts (LP) quantity elevated by 3% final week, they have been nonetheless 23% decrease than final month, influenced by declining nationwide produce volumes, which have been down 8% final week. Service gear posts decreased by 11% w/w, leading to final week’s reefer load-to-truck ratio (LTR) rising by 18% to three.49, nearly half final 12 months’s LTR. 

Spot Charges

At $1.94/mile, reefer linehaul spot market charges are $0.28/mile decrease than final 12 months and $0.08/mile increased than in 2019, following final week’s $0.01/mile improve. Reefer spot charges have dropped $0.18/mile because the July 4 produce season excessive, which aligns with pre-pandemic years,  when charges decreased by $0.13/mile on common over the identical timeframe.

Weekly experiences


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