19 May Spot Rates Projected To Increase As Domestic Produce Surges
As we approach the summer months, those in the produce freight sector shift from fruits and vegetables grown abroad to the larger domestic markets. This year may see an increased spike in demand with businesses in the food service industry reopening and restrictions lifted.
While the Florida winter/spring season wraps up this month, summer fruits such as cherries, grapes, peaches, strawberries, and watermelons will hitting grocery store shelves as the California produce season picks up.
According to DAT Trendlines™, spot rates are forecasted to increase further, peaking around June 6th as the demand for domestic produce, particularly California-grown strawberries increases.
For long-haul carriers transporting cross-country, the demand is there as the USDA is reporting a shortage of trucks in key strawberry-growing regions. Loads from Oxnard to NYC are up $0.96/mile from last year this time while loads from Santa Maria to NYC are up to $3.65/mile from $2.28 in May of 2020.
At Capital Logistics, we continue to monitor trends, especially in reefer shipping. Our extensive expertise in temperature control transportation as well as our formidable carrier relationships allows us to deliver the most reliable service level in the industry, while working to maintain price stability for our shippers.