Archive For The “News” Category
BEAVERTON, OR — Truckload freight volumes and spot rates held firm in June while contract rates fell to their lowest points in almost two years, according to DAT Freight & Analytics, operators of the industry’s largest online freight marketplace and DAT iQ data analytics service.
“The gap between spot and contract rates was the narrowest since April 2022,” said Ken Adamo, DAT Chief of Analytics. “Rates for van and refrigerated freight increased for the third straight month, and volumes were almost unchanged from May. These are signs that spot truckload prices have reached the bottom of the current freight cycle.”
The national benchmark contract rate for dry van freight has not increased for 12 consecutive months. At $2.58 per mile, the rate was 70 cents lower than a year ago.
Volumes held steady in June
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, decreased marginally for van and refrigerated (“reefer”) freight and increased slightly for flatbed loads:
- Van TVI: 230, down 1% from May
- Reefer TVI: 167, down 3% from May
- Flatbed TVI: 267, up 2% from May
Van, reefer rates improved
On the spot market, the national benchmark rates for van and reefer freight rose while the flatbed rate declined compared to May:
- Spot van rate: $2.08 per mile, up 3 cents, the first increase in five months
- Spot reefer rate: $2.47 a mile, up 3 cents
- Spot flatbed rate: $2.61 a mile, down 4 cents
Van line haul rates averaged $1.65 a mile, up 4 cents compared to May, while reefer line haul rates averaged $2.01 a mile, up 5 cents. The flatbed line haul rate dipped 2 cents to $2.10 a mile. Line haul rates subtract an amount equal to an average fuel surcharge. Lower diesel prices in June pushed fuel surcharges to 17-month lows, averaging 43 cents a mile for van freight, 46 cents for reefers, and 51 cents for flatbeds.
Load-to-truck ratios reflected seasonal demand
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace:
- The national average van load-to-truck ratio was 2.6, meaning there were 2.6 loads for every van posted to the DAT One marketplace last month. The ratio was 2.5 in May and 3.9 in June 2022.
- The reefer ratio averaged 3.8, up from 3.6 in May and down from 7.0 in June 2022.
- The flatbed ratio fell to 9.7, down from 11.7 in May and 37.6 in June 2022.
“Demand for truckload services typically slows at this time of year, but this could change quickly given the threat of strikes in the parcel and less-than-truckload sectors,” Adamo said. “Shippers are putting contingency plans in place and would look to freight brokers and carriers on the spot market to keep their line haul operations moving. Demand for trucks would jump, especially around Louisville, Memphis, Indianapolis, Dallas and other major parcel hubs.”
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.
Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. National average spot rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Shippers, transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions.
Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000 indices.
By Bill Bess, ALC
It’s no secret that organized crime, scammers, and thieves are actively working to upset the legitimate flow of freight across the US and Canada. This type of crime has been going on for years, but in the last 12 months thieves have intensified their efforts. Cargo security is a major concern no matter what your role is in the food supply chain. We are all in this together and together we can tighten up our security and make a huge difference.
Allen Lund Company has taken a pro-active approach to identify and eliminate potential security breaches. We have made changes to our on-boarding process, which is closely monitored by our Carrier Resources department. Education and training for brokers has given them the tools to evaluate the potential risk that a carrier might exhibit and react accordingly. Our Accounting department scans thousands of bills of lading and invoices monthly, looking for any inconsistencies. In addition to the internal measures ALC has taken, we share information and best practices with the Transportation Intermediaries Association, CargoNet, Carrier411, and other transportation companies. These policy changes, information sharing, and additional training will continue to make a difference.
What can a shipper or a warehouse do to help prevent your product from being compromised?
- Prior to loading, have your broker give your shipping department the driver’s name, company name, and trailer number. If the information doesn’t match call the broker.
- Whenever possible use a temp recorder that has a tracking device built in. These devices have the ability to monitor temps and location.
- Don’t rely on the pick-up number to verify the carrier.
- Verify the driver’s name with their license. Insist that the bills are signed legibly by the driver and include their company name. If necessary, have the driver print their name and company name.
- Driver should arrive with a pre-cooled trailer. Driver should acknowledge that they understand the desired temp and that it is in continuous mode.
- Most importantly, use a transportation service provider that has the experience and protocols in place that are necessary to protect your product.
We are all in this together with the same basic goal…to deliver the safest and freshest product to our customers.
*****
Bill Bess, Director of Carrier Development, was previously the manager of ALC Orlando, FL, and has been with the Allen Lund Company for 39 years. With over 45 years of experience transporting perishable products, Bess’s expertise includes perishable supply chain protocols, claims resolution, and developing carrier-specific programs for the company.
bill.bess@allenlund.com
Dollar General is pulling back on “nice to have” investments in favor of “need to have” as inflation and income pressures its bottom line. The move mirrors many of its customers.
Headquartered in Goodlettsville, TN, the company is cutting its pOpshelf concept in 2023, reducing the number of stores in the pipeline to 90, down from 150. The concept, which is focused more on urban shoppers with higher incomes, currently has more than 160 stores in 16 states.
“We are reevaluating our plans with regards to our timing of reaching 1,000 stores by the end of 2025 and plan to provide an updated expectation at a later date,” said CEO Jeff Owen, during the company’s recent earnings call.
Reductions in SNAP dollars and lower-than-usual tax returns hit Dollar General customers hard, Owen said. That resulted in less discretionary spending, and lower sales in non-consumables.
“Unfortunately, our customers are saying they’re having to rely more on food banks, savings, and credit cards,” Owen said.
One area Dollar General continues to focus on is its DG Fresh, and fresh produce initiatives. DG Fresh has enhanced profitability of perishables for the company, and while it continues to focus on frozen and refrigerated foods, fresh produce is still on the radar.
“While produce is not currently serviced by our internal supply chain, we continue to believe that DG Fresh provides a potential path forward to expanding our produce offering to more than 10,000 stores over time,” Owen said.
By the end of the first quarter, March 31, Dollar General offered fresh produce in nearly 3,900 of 19,000 stores. Owen said the company is on track to expand that number to 5,000 by the end of 2023.
Wenatchee, WA: CMI Orchards’ hottest CatStats report shows Envy™ apples dominate as the biggest star of the summer. Originally from New Zealand and crafted through natural plant-breeding methods, this cross between Gala and Braeburn quickly emerged as the apple that has everything. Sweet and crunchy, with white flesh that stays white even after being cut, Envy™ apples command a strong brand following and over-the-top consumer desire that keeps them consistently at the top of the charts in the apple market.
Danelle Huber, CMI’s Senior Marketing Manager, reports Envy™’s top-notch rankings with consumers is just one small indicator of the apple’s consistent and steadfast popularity. According to NielsenIQ, the demand for this apple is surging. “Envy™’s popularity has been skyrocketing over the last 52 week period. With a 19% increase in sales and a 28% increase in volume across the United States, Envy™ secures the 8th most popular spot in the U.S. right now.” She adds that this means Envy™ makes up nearly a quarter of branded, high-flavor apple sales volume.
NielsenIQ also reports over the last six months that the Mountain, West North Central, and East North Central divisions enjoyed the largest increases in the Consumer Demand Index, putting Envy™ as the #1 branded apple of choice in the South region and #2 in all the others. This marks a total growth across US regions between 23% and 44.2%.
“Envy™’s fan base continues to soar. Since arriving to market, this luxury apple continues to break sales records time and time again,” says Rochelle Bohm, Vice President of Marketing at CMI. “Its delicate, sweet flavor and crisp, slow-to-brown flesh leaves customer demand high, while the longevity of its stored life and social media presence feeds a growing fan base.”
Bohm goes on to explain that the powerful global marketing presence of Envy™ apples delivers unparalleled brand awareness, helping retailers significantly boost sales while giving their customers what they crave. “Envy™ delivers year-round opportunities for retailers to build category sales with ease,” she says. “A high-performing apple paired with gorgeous branding and availability in both conventional and organic options make Envy™ the ultimate star of the summer.”
About CMI Orchards and Envy™ apples:
CMI Orchards is one of Washington State’s largest growers, shippers and packers of premium quality conventional and organic apples, pears, and cherries. Based in Wenatchee, WA, CMI Orchards delivers outstanding fruit across the U.S.A. and exports to over 60 countries worldwide.
Envy™ is a registered trademark owned by the T&G group of companies. Envy™ apples are sold and distributed by exclusive North American sales agents, including Oppy, Rainier and CMI Orchards, under the leadership and support of the local brand marketing team of T&G Global.
The USDA has identified availability and consumption trends for the seven most popular fruits among U.S. consumers, with apples and oranges crowned as top choices.
According to the entity’s Economic Research Service, oranges are followed by bananas, strawberries, pineapples and watermelon.
But apples are the only fruit in which data were available for all five forms, fresh, canned, frozen, dried, and juice.
“Apples held the top spot for total fruit available for consumption in 2021 with loss-adjusted apple juice availability at 14.7 pounds (1.7 gallons) per person; fresh apples at roughly 9 pounds per person; and canned, dried, and frozen apples totaling to 3.1 pounds per person,” the data revealed.
“Bananas topped the list of most popular fresh fruits at 13.2 pounds per person, while orange juice (16.6 pounds or 1.9 gallons) remained the top fruit juice available for consumption in the U.S.,” the USDA said.
The loss-adjusted food availability data presented modifies parameters for food spoilage, plate waste, and other losses to more closely approximate actual consumption.
The issue today is the same as it has been throughout all history, whether man shall be allowed to govern himself or be ruled by a small elite.
— Thomas Jefferson
BEAVERTON, Ore., June 15, 2023—Truckload freight volumes rallied modestly in May and national average spot rates were stable for a second straight month, said DAT Freight & Analytics, operators of the DAT One freight marketplace and DAT iQ data analytics service.
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, increased for van, refrigerated (“reefer”) and flatbed freight:
• Van TVI: 220, up 5% from April
• Reefer TVI: 164, a 5% increase month over month
• Flatbed TVI: 258, up 7% from April
Month over month, the van and reefer TVI numbers rebounded from their lowest points since February 2021. Truckload volumes typically decline from April to May, but they increased for the first time since 2019.
“This was the second-best May on record for van and reefer freight, according to our TVI,” said Ken Adamo, DAT Chief of Analytics. “There was demand to move seasonal goods at a time when the truck supply on the spot market tightened due to the International Roadcheck inspection event, the Memorial Day holiday and general carrier attrition.”
Van and reefer load-to-truck ratios increased
National average van and reefer load-to-truck ratios rose in May:
• Van ratio: 2.5, up from 1.9 in April, meaning there were 2.5 loads for every truck on the DAT One marketplace
• Reefer ratio: 3.6, up from 2.7
• Flatbed ratio: 11.7, down from 12.1
National average broker-to-carrier spot rates were steady compared to April:
• Spot van rate: $2.05 per mile, down 1 cent
• Spot reefer rate: $2.44 a mile, up 3 cents
• Spot flatbed rate: $2.65 a mile, down 2 cents
Monthly national average line-haul rates, which subtract an amount equal to an average fuel surcharge, increased for the first time this year for all three equipment types. The average van line-haul rate was $1.61 a mile, up 2 cents compared to April; the reefer line-haul rate jumped 7 cents to $1.96 a mile; and the flatbed line-haul rate rose 2 cents to $2.12 a mile.
Contract rates declined
National average rates for contracted freight declined compared to April:
• Contract van rate: $2.62 per mile, down 6 cents
• Contract reefer rate: $2.91 a mile, down 10 cents
• Contract flatbed rate: $3.30 a mile, down 3 cents
The average rate for contract van and reefer freight has fallen for seven consecutive months.
“Shippers are taking advantage of abundant truckload capacity to establish new contract rates at substantial savings compared to 2022, and to make strategic use of the spot market,” Adamo said. “We expect these trends to continue through the end of the year.”
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.
Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. National average spot rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for spot truckload freight.
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Shippers, transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions.
Founded in 1978, DAT is a wholly owned subsidiary of Roper Technologies (NYSE: ROP), a diversified technology company and constituent of the S&P 500 and Fortune 1000 indices.
Strawberries enjoy one of the highest household penetration levels in the U.S. among fresh fruits, and the highest per capita consumption in the berry patch, both in fresh and frozen markets.
In the latest RaboResearch Report, it highlights that as demand continues to grow steadily, planted area in California is expanding. Record shipments are likely in 2023, but weather remains the usual wildcard, particularly this season, as growing areas in California have been impacted by record rainfall.
While the fresh market remains mainly a regional North American story, U.S. imports of frozen strawberries from South America are changing the landscape. With the availability and consumption of all berries expanding, interesting market opportunities arise.
Gains in retail per capita consumption for berries have been very strong compared with many other fresh fruits, the USDA reports.
Retail per capita consumption of blueberries has increased 97% in the past 10 years, growing from 1.2 pounds in 2011 to 2.3 pounds in 2022.
Raspberries have shown even more remarkable percentage growth, gaining 192% from 0.3 pounds in 2011 to 0.8 pounds in 2021.
Strawberry consumption also continues to grow, though at a slower percentage pace compared with blueberries and raspberries. Strawberry consumption grew from 4.6 pounds in 2011 to 6.7 pounds in 2021, a gain of 45%.
Here is a list of fresh fruits, with per capita growth since 2011, as reported by the USDA.
Growth in per capita availability from 2011 to 2021: (retail per capita availability in 2021 in pounds, with the percentage change from 2011)
- Raspberries: 0.8 pound, up 192%.
- Blueberries: 2.3 pounds, up 97%.
- Limes: 4.4 pounds, up 86%.
- Tangerines and tangelos: 6.6 pounds, up 69%.
- Avocados: 7.9 pounds, up 64%.
- Strawberries: 6.7 pounds, up 45%.
- Mangoes: 3.5 pounds, up 44%.
- Lemons: 4.7 pounds, up 42%.
- Kiwifruit: 0.7 pound, up 39%.
- Pineapples: 7.5 pounds, up 38%.
- Papayas: 1.3 pounds, up 28%.
- Grapes: 7.7 pounds, up 15%.
- Total citrus: 25.1 pounds, up 14%.
- Cherries: 1.3 pounds, up 10%.
- Total fresh fruit: 131.8 pounds, up 9%.
- Total non-citrus: 106.7 pounds, up 8%.
- Bananas: 26.9 pounds, up 5%.
- Apples: 15.2 pounds, up 2%.
- Pears: 3 pounds, down 3%.
- Melons: 19 pounds, down 13%.
- Oranges: 7.9 pounds, down 18%.
- Apricots: 0.1 pound, down 21%.
- Plums and prunes: 0.5 pound, down 42%.
- Grapefruit: 1.4 pounds, down 46%.
- Peaches and nectarines: 2.3 pounds, down 47%.
Enough talk about millennials and their avocado-toast-buying ways — new data suggests every generation is at risk of spending too much cash on their grub.
A poll of 1,800 US adults found, across the board, 48% said their grocery costs are eating up the majority of their monthly budget, followed by utility bills (38%) and credit card debt (37%), according to Talker Research.
Younger Americans seem to be focused on their financial positioning for the future, as well. Thirty-eight percent Gen Zers are delegating the majority of their monthly budget towards loans, while 46% of millennials are likewise spending most of their money tackling credit card debt.
Meanwhile, 45% of Gen X is spending the most on groceries, 43% of baby boomers are paying the most on utility bills and 43% of the Silent generation are forking up the most for their rent and/or mortgages.
TOP 3 MONTHLY BUDGET SPENDS PER GENERATION
GEN Z
Groceries – 48%
Credit card debt – 41%
Rent – 39%
MILLENNIAL
Groceries – 55%
Credit card debt – 46%
Utilities – 44%
GEN X
Groceries – 45%
Rent/mortgage – 38%
Utilities – 38%
BABY BOOMER
Groceries – 47%
Utilities – 43%
Rent/mortgage – 31%
SILENT GENERATION
Groceries – 45%
Rent/mortgage – 43%
Loans – 39%
Survey methodology:
This random double-opt-in survey of 1,800 Americans with bank accounts was commissioned by UserTesting between March 3 and April 12, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).