Reefer Report: July is National Watermelon Month – DAT Freight & Analytics

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Watermelons develop properly within the widespread sizzling and dry climate prevalent this summer season, and these situations are bringing on the melons quicker with a sweeter profile. In response to USDA knowledge, Florida is the biggest watermelon rising area, adopted by Georgia, Texas, and California. YTD volumes are presently down 4% y/y; nevertheless, 2021 had the 2nd highest volumes within the final ten years. Georgia’s season is peaking, and quantity is up 29% y/y, whereas Texas and California are exhibiting a gradual begin to the season. 

In California, y/y quantity is presently down 7%;  Bryan Van Groningen, whose household sells watermelons exterior of Stockton, CA, mentioned, “I’d say our fields are producing an honest crop at this level.” Van Groningen mentioned harvest started June 20. He was aiming to have melons shifting via his Manteca packing shed ahead of that, however cooler spring climate delayed his plans. Juan Anciso, a professor and horticulturist with the Texas A&M AgriLife Extension, suggested Texas melons will likely be additional candy this season, regardless of decrease yields general; presently, the Texas crop quantity is down 15% y/y. “There have been quite a lot of the explanation why some growers type of delayed their harvest, and a giant a part of that motive was labor to go harvest these watermelons. Some fields had been per week to 10 days late in getting in there and harvesting.”

Based mostly on prior years’ knowledge from the USDA, July harvests ought to peak in Georgia, the Carolinas, Missouri, and Delaware for reefer drivers seeking to capitalize on these heavy produce masses. As well as, the Texas and California harvests are ramping up and may peak in August.

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

Regardless of larger volumes of watermelons, reefer spot charges in Florida proceed to chill after dropping by $0.11/mile final week to a state outbound common of $1.45/mile, down $0.31/mile within the earlier month. Reefer capability was, nevertheless, tighter in Cell, AL, final week, the place spot charges jumped by $0.39/mile to $2.19/mile. Hundreds 1640 miles west to Phoenix had been up $0.09/mile final week to a median of $1.89/mile, which is simply $0.11/mile decrease y/y. On the regional-haul lane to Orlando, spot charges elevated by $0.35/mile above the June common to $3.38/mile final week. 

Reefer spot charges proceed to climb in Chicago, averaging $2.56/mile for outbound masses following final week’s $0.05/mile improve. Chicago reefer charges have elevated by $0.18/mile within the earlier month as a consequence of load submit volumes surging by 46% over the identical timeframe. Capability additionally tightened on the 1,200-mile lane to Orlando, the place charges averaged $2.15/mile final week, representing the primary time charges had elevated since January after they had been $2.00/mile larger at $4.15/mile. From Chicago to Seattle, capability tightened additionally following a $0.07/mile improve to a median of $1.72/mile, which is $0.14/mile decrease than the earlier 12 months. 

USDA long-haul produce volumes had been down by simply over 13,000 truckloads final week in comparison with the earlier 12 months however up barely in comparison with the primary week of July, contributing to the 1% w/w improve in reefer load posts. Like dry van, service gear posts are at record-high ranges for this time of the 12 months, now 2% larger than the over-supplied 2019 reefer market. Consequently, the reefer load-to-truck (LTR) ratio dropped again to 7.38, virtually similar to this time in 2020. 

Reefer linehaul spot charges at the moment are $0.02/mile decrease than this time in 2018, following final week’s $0.03/mile lower to a nationwide common of $2.24/mile. In comparison with the earlier 12 months, reefer spot charges are $0.54/mile decrease however nonetheless $0.28/mile larger than the pre-pandemic common for this time of the 12 months.

Learn the complete weekly market replace.

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