Some Reasons Why Produce Freight Rates Have Declined in Recent Weeks

Some Reasons Why Produce Freight Rates Have Declined in Recent Weeks

210HPI’ve been asked several times recently why produce rates from several areas around the country, including California, have declined in recent weeks.  Many factors seem to play into this going beyond just the demand for trucks and for produce shipments by the produce buyers.

  • First of all, it is February, perhaps the slowest time of the year for over all fresh fruit and vegetable volume – and shipments.
  • It has been one hellacious winter over much of North America.  When it is bitter cold, with ice and snow covered streets, people tend to hibernate.  They go to their supermarket less frequently and when they do, often purchase less.
  • With a hard winter, come added expenses, whether you stay warm by using home heating oil, propane, natural gas or electricity, or a combination of these items.  This is resulting in some record setting utility bills for consumers.  The more one spends on necessities such as these, the less cash consumers have to spend on food.  While food is certainly a necessity, it still can mean fewer purchases, as well as more selective buying of fresh produce items that are cheaper than others.

Hang in there; we’ve got at least another month or so of winter weather.  Until the weather improves, winter vegetables quit shivering so much, and start growing more, the winter doldrums will continue.

California and Arizona winter vegetables – grossing about $6000 to New York City.

Central Florida tomatoes and vegetables – about $2500 to New York City.