Whereas general produce volumes are down just below 15% this season, carriers hauling fruit and greens out of main rising areas into main capital cities are having an excellent 12 months. In line with the USDA, truckload charges over the last week of June have been $0.21/mile increased at $4.38/mile incl. FSC in comparison with $4.17/mile a 12 months in the past.
The charges are averaged over 9 regional crop origination markets, together with Arizona, California, Florida, the Nice Lakes (Michigan, Minnesota, and Wisconsin), imports throughout the Mexico-Arizona border, imports throughout the Mexico-Texas border, New York, the Pacific Northwest (Idaho, Oregon, and Washington) and the Southeast (North Carolina, South Carolina, and Georgia).
Within the nation’s largest produce area of California, spot charges in June averaged $4.38/mile, or 8% increased than the earlier 12 months, whereas in Florida, produce spot charges have been the identical in comparison with 2021 at $3.38/mile. Within the Mexico-Texas area, spot charges common $3.29/mile in June in comparison with $3.05/mile in 2021. Within the Pacific Northwest, the place produce season is ramping up, spot charges are at the moment averaging $3.39/mile, which is 7% increased than the earlier 12 months.
In line with the USDA, within the week ending July 6, there was a scarcity of vans reported in Florida West and South Carolina Districts for a great deal of tomatoes, grapes, and watermelons, Southeast Missouri for watermelons and candy potatoes in Japanese North Carolina.
All charges cited beneath exclude gas surcharges except in any other case famous.
Reefer capability tightened within the Ontario market final week for the fourth week. Spot charges have elevated by $0.21/mile m/m to a median outbound price of $2.90/mile this week, whereas on the short-haul lane from Los Angeles to Las Vegas, charges have been flat at $5.25/mile final week. Within the Pacific Northwest, load put up volumes in Seattle have surged, growing by 76% within the earlier six weeks, pushing up spot charges by $0.23/mile to an outbound common of $1.47/mile. Common spot charges on the 1,500-mile haul to Phoenix have been up $0.02/mile to $1.11/mile final week to compensate for lowering charges in the wrong way. Within the general Phoenix market, charges have been down significantly final week, dropping by $0.13/mile to $2.78/mile, whereas hundreds east to Los Angeles have been down $0.68/mile to a median of $2.43/mile final week.
Within the Southeast Area, the USDA experiences a scarcity of vans for a great deal of candy potatoes, pushing up regional reefer charges. In Raleigh, NC, reefer charges elevated by $0.43/mile to $2.67/mile final week, and on the 580-mile west to Bowling Inexperienced, KY, spot charges have been up $0.33/mile to $2.58/mile, the second-highest studying within the final 12-months. Reefer capability was tight within the Houston market the earlier week, the place spot charges elevated by $0.13/mile to a median of $2.28/mile. On the 1,200-mile lane to Denver, charges elevated by $0.19/mile to $2.62/mile or $0.40/mile slower than the earlier 12 months.
In line with the newest information from the USDA, the amount of long-haul produce is round 15% decrease than the earlier 12 months and on the lowest stage since 2015. In California, volumes are the bottom in 20 years, contributing primarily to decreased nationwide reefer demand this 12 months. Like dry van, reefer volumes and tools posts have been down by 8% and 15%, respectively, ensuing within the reefer load-to-truck (LTR) ratio growing barely to 9.04.
The everyday seasonal spike in reefer charges pushed by peak produce volumes did not ship this 12 months. Reefer linehaul charges have dropped by virtually $0.90/mile this 12 months following final week’s $0.05/mile lower. As we begin the second half of 2022, reefer spot charges at the moment common $2.27/mile. At this stage, charges at the moment are $0.54/mile decrease than the earlier 12 months however $0.26/mile increased than the pre-pandemic common for this time of the 12 months.