Prime Time Contemplates Just How High Truck Rates are Going

Prime Time Contemplates Just How High Truck Rates are Going

Prime Time International, a fresh produce produce grower and shipper based in Coachella, CA has found the times of COVID-19 change, not only with growing their crops, but when it comes to transportation.

The company cites the cost of truck rates as an example and wonders just how how rates will soar this summer. It was pointed out, for example in mid-April truck rates from Nogales to Boston hit $9,300, which translates into nearly $10,000 for loads coming out of California. The company cited one truck who they knew had 8 trucks parked due to a lack of drivers.

It was not the pool of long-haul truckers is being depleted by demand in the home delivery arena. Those same drivers can work close to home and go home every night. The company has discover other drivers who do not feel the risk of driving cross country is not worth it. Due the lack of equipment, truck rates have been much higher during much of the past year. It remains to be seen how high rates must rise to create more supply.

Aside from transportation concerns, Prime Time is trying to figure out how consumers will react to the pandemic, and what will the be trucking requirements for restaurants and other foodservice outlets. It’s much easier consider what the demand from retailers will be.

When the pandemic hit the company’s spring crops in Coachella Valley last year crops were already in the ground and there was no opportunity to alter the production schedule. However, they were able to cut back some on production for the summer, which was just going in the ground. It is a year later but how the consumer will react over the next few months is equally uncertain.

Prime Time does also of foodservice business with its primary crop, Bell peppers. Last year, that business was mostly loss, though retail sales took up the slack. Foodservice accounts are finally starting to come back.

There is still uncertainly for shipments to retailers. Prime Time did increase its summer production a little bit over last summer, but its Coachella Valley acreage has remained the same.

The company’s red peppers had been coming from in Baja California but have recently shifted to Coachella. Prime Time has eggplant, sweet corn and chili peppers just starting with watermelons slated to begin on May 10.   Typically, the Coachella row crops start in April and lasts until around June 10, as long as the temperature doesn’t get too hot.

Prime Time then farms acreage in the San Joaquin Valley and Ventura County.