Produce Rates Skyrocket from California

Produce Rates Skyrocket from California

I arrived in Chicago yesterday (June 4)  and the talk both with people in trucking and in the produce industry was the rates had shot up $1,000 on loads from California to Chicago.  There sure was a lot of complaining from produce companies, but big smiles on the folks in transportation.  It should come as no surprise to anyone.  It happens around June 1st every year as produce spring shipments increase and refrigerated equipment comes into short supply, although trucks seemed to be available, if you were willing the pay the price.

The down side to the rising produce rates, is, as every year, the westbound dry freight rate are awful.  Dry freight from Chicago and the Midwest is grossing only $2400 to $2500 to the West Coast — and some of it is even cheaper.  That may pay for the number 2 diesel, but it’s not going to cover the cost of the driver, or the truck.

Another downside is be wary of  companies with which you may not be familiar.  Some receivers will look for any little thing to make a deduction from your load.  I’m talking about things as petty, for example, as the product in your trailer being one degree off the recommended pulp temperture.  That $1000 extra you thought you were making with the rising rates, isn’t going to look near as good when you are paid, if you face a deduction of $200, $300, $400 or more.

As of today, here’s what some loads are paying coming into Chicago.

From California to Chicago:

6 pick ups, five drops, grossing $7,000

5 pick ups, one drop, grossing $6400 (Think I’d take the next load instead, see the next one listed!)

Fresno, 1 pick up, 1 drop $6400

Nogales melons and grapes – $5000 to Chicago

West Texas (90 miles north of Laredo), potatoes – $2400 to $2500 to Chicago.

By Bill Martin

Special thanks to Eclipse Dist., Elburn, IL for the rate information.

Central Florida potatoes – $3000 to Chicago.