DAT’s 2024 Freight Rate Focus report notes pandemic-sparked disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.
While truck rates are expected to rise to some degree, the DAT report said it may not be until the middle of 2024.
“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”
Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.
DAT’s prediction is current market conditions will continue until late Q2 when the market should finally find equilibrium.
“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.
Average U.S. refrigerated truck rates (per mile)
Jan. 3 — $3.88.
Feb. 7 — $3.72.
March 7 — $3.48.
April 4 — $3.43.
May 2 — $3.37.
June 6 — $3.58.
July 4 — $3.59.
Aug. 1 — $3.57.
Sept. 5 — $3.69.
Oct. 3 — $3.41.
Nov. 7 — $3.33.
Dec. 5 — $3.21.
(Source: USDA)
Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024.
In January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.
U.S. fresh apples remaining in storage totaled 124.4 million bushels in a Dec. 1 report from the U.S. Apple Association (USApple). That figure is up 33% more than inventories reported this same time last year and 20% more than the five-year average for December, the association said.
USApple also said that processing apples totaled 48.5 million bushels, which is up 19% over the same reporting time last year. The 48.5-million-bushel figure is 17% more than the five-year average for the month.
Washington leads the states in apple holdings, according to the report, with 23,399,776 42-pound bushels of fresh apples in regular storage and 81,986,890 42-pound bushels of fresh apples in controlled atmosphere storage, according to the association.
USApple reports gala leads all varieties in fresh apples in controlled storage with 18,758,807 42-pound bushels, while red delicious comes in second with 17,853,167 42-pound bushels of fresh apples in controlled atmosphere storage. Pink Lady/cripps pink tops all varieties in fresh apple holdings in regular storage with 3,893,710 42-pound bushels, and Honeycrisp is second with 3,580,764 42-pound bushels of fresh apples in regular storage.
According to the association, Honeycrisp leads all processing apples in controlled-atmosphere storage with 7,482,773 42-pound bushels, and golden delicious comes is second with 3,711,724 42-pound bushels in controlled-atmosphere storage. Golden delicious also leads processing apples in regular storage with 1,809,405 42-pound bushels, and assorted other varieties are secon with 1,803,082 42-pound bushels in regular storage.
A series of winter cold fronts are expected over the next week in the Arizona-California desert growing region, bringing a pattern of light rain followed by cool temperatures and lettuce ice conditions, according to a press release by Markon Cooperative of Salinas, CA.
Light rain is forecast for Sunday, January 7, but less than .10 inches of rain is expected.
Temperatures will cool significantly through most of next week, starting on Monday, January 8. Morning lows will drop below freezing, and widespread lettuce ice is forecast across all desert valleys.
Significant production and loading delays will occur next week. Markon will work with suppliers to build inventory leading into these weather challenges in order to minimize disruptions.
Markon inspectors will continue to monitor weather forecasts closely and will update further as needed.
After what’s been a complicated year for Florida citrus growers, with very low productive levels due to hurricane damage and the ever-present citrus greening disease, a recent estimate by the USDA Agricultural Statistics Board is projecting an increase in both grapefruit and tangerine production.
The forecast for all grapefruit production is 2.40 million boxes, up 500,000 boxes from the October forecast. If realized, this would be 33% more than last season’s final production.
Red grapefruit, now at 2.1 million boxes, up by 450,000 boxes from the October forecast. Fruit size is projected to be above average.
White grapefruit volumes are forecasted up 50,000 boxes and are now at 300,000 boxes. Projected fruit size at harvest is slightly above average while projected droppage is below average.
Tangerine and tangelo production is estimated at 550,000 boxes, up 50,000 boxes from the October forecast.
The USDA’s forecast for all orange varieties remains unchanged for the October forecast at 20.5 million boxes.
Research from John Hopkins Medicine states that blackberries are second only to black raspberries when it comes to overall nutrition. Blackberries are vitamin and nutrient-dense with a high amount of fiber and antioxidants and less sugar than other berries, says a press release from Berry Farms of Compton, CA.
Sweet Karoline is a blackberry variety co-owned by Berry Fresh that is known for its sweet flavor and resistance to red cells, according to the release. Berry Fresh says it is a year-round grower and marketer of premium blueberries, blackberries and raspberries to customers in the Americas.
As the Peruvian sweet onion season draws to a close, Keystone Fruit Marketing of Greencastle, PA, a division of Progressive Produce of Los Angeles, is gearing up to transition from Peruvian Mayan Sweets to Mexican Mayan Sweets.
Keystone’s Mayan Sweets are well-recognized as a respected and established brand with a long history. The company’s foray into sweet onions began in the early 1990s when it became the first company to grow sweet onions in Peru.
The founders of Keystone wanted to have a year-round sweet onion program, and that meant going to various regions across North and South America to ensure a high-quality sweet onions available throughout the year.
Today, Keystone Fruit Marketing remains one of the largest importers of sweet onions from Peru into the United States and now has grower partners in multiple regions, including Washington, California, Mexico, Texas and Georgia.
The Peruvian sweet onion season, a cornerstone of Keystone’s year-round program, typically runs from late July through March, with peak supply from September to December.
As the Peruvian sweet onion season nears its conclusion, Keystone anticipates the start of the Mexican sweet onion season, set to kick off in mid-January. Early indications suggest an excellent crop.
Keystone expects goos supplies of Mexican sweet onions available through April, along with a full line of onion varieties, including red, white, yellow and it flat sweet onions for 2024.
Following drought restrictions imposed in May, which saw daily transits and vessel capacity reduced, the Panama Canal Authority (ACP) announced Dec. 15 that it will increase the number of daily transits to 24 starting in January.
This comes as rainfall and lake levels for November proved to be better than expected, coupled with the positive outcomes from the Canal’s water-saving measures.
Additionally, the Panama Canal will allow one booking slot per customer per date, with some exceptions for quotas offered to vessels competing through the reservation system.
These measures allow the majority of vessels that want to transit the Canal to have a better chance of obtaining a reservation.
Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the challenges posed by the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon.
The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April.
With this, 2023 became the second driest year in recorded history of the Panama Canal watershed, which led to the implementation of an operational strategy focused on water conservation and transit reliability.
Approximately 3% of global maritime trade volumes traverse the Panama Canal. Over 50% of the tonnage navigating through the maritime passageway originates from the trade lane connecting the East Coast of the U.S. to Asia, followed by South and Central America’s routes. Agricultural products are among the key commodities transported through the canal.
Prescription produce is on a mission to reshape healthcare by proactively addressing diseases like heart disease and diabetes through dietary management. Shocking statistics reveal that only 1 in 10 Americans consume the recommended fresh produce, while 8 out of 10 healthcare dollars treat preventable chronic diseases. This shift underscores the preventive potential of a nutritious diet, extending beyond conventional medications.
The National Produce Prescription Collaborative notes a rising trend in healthcare providers and insurers advocating for these prescriptions among eligible patients facing health risks or food insecurity. With over 100 pilot programs nationwide, spanning Medicaid, Medicare, private employers, and federal healthcare systems, this movement is expanding rapidly—and Planet Harvest is excited to be a part of it.
Planet Harvest is spearheading innovation in healthcare accessibility, partnering with entities like UT Health and impactful nonprofits such as Brighter Bites to enhance fresh produce availability within communities.
Going beyond typical delivery methods, Planet Harvest deeply integrates itself within communities. Through strategic alliances with distributors and dedicated nonprofits, the company distributes fresh produce in innovated access points in rural areas, religious establishments, community centers and shelters.
Resourceful in their approach, Planet Harvest is in enhancing healthcare accessibility by leveraging their established network of distributors and last-mile solutions. For instance, their introduction of mobile food ‘farmacies’ utilizes assets from distributor partners, strategically parking them within five miles of the patient’s residence and deploying last-mile delivery solutions directly to their doorsteps.
Recognizing the shortcomings in current infrastructure, Planet Harvest steps in to bridge these gaps, positioning itself as a driving force in transforming healthcare through prescription produce.
Planet Harvest actively works to move products into commerce that were historically considered unsaleable through its affiliated distribution network, thereby minimizing the environmental and economic impacts of food losses.
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Melissa Ackerman is the founder and CEO of Planet Harvest, a mission-based company dedicated to revolutionizing the way people enjoy fresh produce. Committed to driving consumption and accessibility, the company focuses on refining supply chains and introducing rescued produce into daily lives, all while championing a sustainable future. With over 14 years of leadership experience in the produce industry, Melissa Ackerman possesses a deep understanding of the challenges and opportunities facing growers, distributors, retailers, consumers, and healthcare providers. Her passion lies in finding the right balance between doing business and doing good, all the while seeking innovative solutions to improve the quality and accessibility of fresh, nutritious food.
Adverse weather conditions have played havoc with Peruvian mango exports this season. A forecast by The Peruvian Association of Mango Producers and Exports (APEM) reveals volumes will plunge by 76% this season to 60,000 tons.
In the 2022-23 season, the country reported export volumes of 250,000 tons, the fourth consecutive increase for the fruit.
The drop in export volumes has caused prices to surge, even double the price of last season for fruit transported by air.
APEM notes production in the San Lorenzo Valley, and pretty much every growing region was very affected by rains during March and April.
Maritime exports to the United States started about three weeks ago. About 95% of the country’s mango exports are by boat.
Forecasts indicate that the main market will be the U.S. since Europe will have some Brazilian mangos.
The APEM originally estimated exports to the U.S. would be approximately 8 million boxes, but that total has now been reduced to 5 million boxes.
The Hunts Point Produce Market located in New York City’s South Bronx is the world’s largest wholesale produce distribution center supplying fresh fruits and vegetables to 22 million people each year.
The 112-acre complex in the Bronx has approximately 30 merchants, moves over 2.5 billion pounds of produce sourced from 49 states and 55 countries each year.
S. Katzman Produce reports it sells various products the year around because it is produced in different places with different seasons.
Literally hundreds of trucks ranging from 18 wheelers to straight jobs are deliver produce to the market, or distributing it from the facility. Hunts Point also receives about 150 rail cars per month, providing volume that is miniscule to that of trucks.
The giant produce markets employees 2,000 people and has about 7,000 visitors daily.
Hunts Point opened in 1967 and is owned by New York City. It has received three rounds of funding totaling nearly $400 million, but business owners say more is needed to fully modernize.
A major upgrade at the produce center is building adequate refrigerated storage to replace the approximately 1,000 diesel-powered refrigerated trailer units that idle on-site.
