The Port of Oakland is a central hub for exports in Northern California. Its strategic location and trendy infrastructure make it common for corporations transport items abroad. The Port of Oakland handles varied exports, from agricultural merchandise to manufactured items.
Most container ships crusing from the Port of Oakland are particularly heading to China and Japan, with Oakland being the final port of name for a lot of Asian vessels on their westbound voyage. Timing is all the things, and within the refrigerated meals sector, whether or not it’s contemporary produce, contemporary proteins, or all the things with shortened shelf life, the vessel with the shortest transit time is all the time in demand. Everybody needs their freight on the ship on the final potential minute. Chilly meals like pork and contemporary produce are held wherever from a number of hours to a day or two at most.
A big quantity of refrigerated exports is processed by way of CoolPort, a 280,000-square-foot distribution middle able to transport a million tons of beef and pork yearly. CoolPort provides 90 dock doorways and the capability to load 18 rail vehicles concurrently, contributing to the Port of Oakland’s rating because the eighth-busiest container port in america and primary for reefer exports nationally.
The Port of Oakland accounted for 16% of complete U.S. refrigerated exports in June, based on IHS Markit/PIERS. Despite the fact that export TEU (twenty-foot equal unit) quantity was down 5% m/m, exports are up 13% year-to-date and a pair of% y/y. The vast majority of exports go to Japan and Korea, with meat (61%), oranges (18%), and cheese (6%) being the highest three commodities exported. In comparison with June final 12 months, the export volumes of meat and oranges are up 22% and 58%, respectively, whereas cheese exports are down 23% y/y.
Market Watch
All charges cited under exclude gas surcharges until in any other case famous.
Capability tightened barely in Stockton following a $0.03/mile improve to $2.41/mile for outbound masses, the one market in California to report a rise. State-level charges within the Golden State have been flat final week at $2.48/mile, which was $0.36/mile decrease than in 2022. In response to the USDA, produce volumes in California are 34% decrease y/y following final week’s 11% lower, impacting decrease trucking demand in main produce markets like Fresno, the place charges dropped to $2.19/mile for the fourth week. In close by San Francisco, residence to the “Summer time Salad Bowl” within the Salinas-Watsonville space, spot charges have been flat at $2.16/mile final week after dropping $0.09/mile within the earlier 4 weeks.
Within the Macon, Georgia, market, residence to the main peach-producing county, reefer spot charges jumped by $0.07/mile final week to an outbound common of $2.54/mile. Macon to Miami masses paid carriers $2.98/mile, $0.15/mile increased than final month however over $0.80/mile decrease than in 2022.
In Philadelphia, residence to the Packer Avenue Marine Terminal (the place most South American refrigerated imports arrive), reefer spot charges elevated for the fourth week to $1.88/mile following final week’s $0.08/mile achieve. In June, the Port of Philadelphia was the primary port for refrigerated import tonnage.
Load to Truck Ratio (LTR)
Reefer spot market volumes have been nearly similar to Week 29 in 2019, following final week’s 6% lower. Load posts for all refrigerated temperature settings have been simply over half what they have been a 12 months in the past, impacted by decrease produce volumes within the 32 to 45 levels F vary. In response to the USDA, this was 9% decrease than the earlier 12 months following final week’s 7% lower. Service gear posts have been 1% decrease than in 2019 following final week’s 4% lower, ensuing within the reefer load-to-truck ratio (LTR) lowering barely from 3.72 to three.65, nearly similar to 2019 when the LTR was 3.15.
Spot Charges
On the midpoint in what’s turning out to be the most popular single month for temperatures on document, the July reefer spot market is following seasonal tendencies and cooling off quickly. Reefer linehaul charges have dropped $0.11/mile since July 4, following final week’s $0.05/mile lower to a nationwide common of $1.97/mile. The nationwide common linehaul charge is $0.29/mile decrease than in 2022 and solely $0.10/mile increased than in 2019.
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