A mild winter, great spring and increasing produce volume is gradually increasing demand for refrigerated equipment in several areas of the country. This is resulting in rising freight rates, although higher diesel fuel prices is certainly putting a damper on many truckers getting too excited about these changes.
In Florida, we’ve seen rate increases of 10 to 15 percent in the past week as volume continues to build for spring vegetables, and red potatoes. Watermelon shipments are underway, but we’re another week or so away from good volume.
In southeast Georgia, light shipments of Vidalia onions are occurring, but decent volume won’t hit until around April 15th.
On the West coast, we’re seeing a few more $7000 freight rates to New York City and Boston, but the majority of rates remain a few hundred dollars less. But this is an indicator of what’s coming as volume continues to build from Southern California, the San Joaquin Valley as well as the Salinas area.
Mexican vegetables, melons and mangos crossing the border at Nogales, AZ are showing small rate increases as this area enters it’s final peak volume month for shipments.
I keep hearing about shortages of equipment for hauling sweet potatoes out of eastern areas of North Carolina, but there seems to be no increases in the freight rates. Could there be a correlation? Duh!
North Carolina sweet potatoes – grossing about $2250 to Chicago.
Southern California, avocados, berries, etc – about $6800 to New York City.
Nogales vegetables – about $5800 to Philadelphia.
South Florida veggies – about $3600 to Boston