Archive For The “Trucking Reports” Category
Strong freight rates were the norm for refrigerated trucks last summer and the trend in September showed continued strength. Big demand for refrigerated trucks should continue into 2022, according to the latest analysis from DAT.
Spot and contract truckload rates hit new highs in September, DAT reported, as shippers dealt with historic surges of freight, constraints on equipment and drivers and an early start to the peak holiday shipping season.
“The dog days of summer for freight did not materialize this year, DAT Chief Scientist Chris Caplice said in a news release. “Instead, the combination of strong consumer demand, new and evolving supply chain bottlenecks and early proactive shipping for the holiday season kept demand for capacity at record highs.”
Caplice said DAT expects truckload pricing to remain elevated into the first quarter of 2022 and for a market correction to occur sometime in the first or second quarter.
“This ‘correction’ will likely not be a ‘freight recession’ marked by consecutive quarters of decreased volumes and overcapacity, but a return to typical growth rates as shippers and carriers across all modes adjust to changes in consumer behavior, product distribution patterns and the effects of COVID-19 on the global economy,” Caplice said in the release.
The DAT Truckload Volume Index was 229 in September, down 1% compared to August and the highest for any September on record, according to the news release. The Index is an aggregated measure of dry van, refrigerated (“reefer”) and flatbed loads moved by truckload carriers each month. A decline of 7% to 10% is more typical from August to September.
“Businesses are shipping early and, where possible, by truck in order to make sure they have inventory, but this means using the spot market or higher-priced carriers to cover their loads,” Ken Adamo, DAT Chief of Analytics, said in the release. “If you’re accustomed to having the right truck in the right place at the right price, you can have one or two of those things but probably not all three.”
The national average rate for van freight on the DAT One load board network increased 9 cents to $2.85 per mile (including a fuel surcharge), the fifth time the van rate has set a new monthly high this year, according to the release. By comparison, the rate averaged $2.37 a mile in September 2020.
At $3.25 per mile, the national average spot reefer rate was up 10 cents compared to August and was 68 cents higher year over year. The spot flatbed rate averaged $3.09 a mile, up 1 cent month over month, according to the release.
The number of loads posted to the DAT network fell 1.5% in September, according to the release, while truck posts decreased 4.5%. The national average van load-to-truck ratio was 6.3, meaning there were 6.3 loads for every van posted to the DAT network, down from 6.5 in August. The ratio was 5.4 in September 2020.
The reefer load-to-truck ratio dropped from 14.9 in August to 13.5, in line with seasonal declines in agricultural production. The flatbed ratio, DAT reported, climbed from 44.1 to 47.9, driven by single-family home construction, an increase in oil and gas activity and recovery efforts following Hurricane Ida.
DAT reported the national average contract van rate was $2.85 per mile, up 3 cents compared to August and equal to the national average spot van rate. The contract reefer rate was $2.97 per mile, also up 3 cents month over month, while the average contract flatbed rate was unchanged at $3.30 per mile.
The national average price of on-highway diesel rose 3 cents to $3.38 a gallon, increasing for the sixth straight month. The spot and contract rates reported here include a fuel surcharge, which was 36 cents per mile for van freight in September. That’s 17 cents more than it was in September 2020.
Despite what is considered an off year for production, the California Pistachio crop could be the second largest on record because of more acreage.
Coming in at about 1 billion pounds, the California crop is weighing in just under last year’s record 1.05 billion pounds. Industry leaders also predict strong domestic and international markets this year.
Pistachios rank No. 4 among California’s top agricultural commodities, behind milk, almonds and grapes. In 2020, the crop’s production value was $2.87 billion.
Industry group the American Pistachio Growers report the nuts are much smaller than normal, but there are more of them.
In July, predictions had the crop coming in between 850 million to 940 million pounds due to drought and heat, but tonnage reports from packers and processors September 30 showed higher volumes than predicted.
Growers in the San Joaquin Valley report large yields, thanks to the fertile soils, hot, arid climate and moderate winters.
Harvest started in late August and the second shakes on trees wrapped up in the third week of October.
One billion pounds is a large volume for this “off” year in the pistachio industry. Pistachios are alternate-bearing, meaning the trees produce a heavy crop yield one year and a lighter yield the next. This year is technically an “off” year for the crop, so growers say they expect a crop well above a billion pounds in 2022, an “on” year.
According to the U.S. Administrative Committee for Pistachios, Iran follows the U.S. as the world’s second largest pistachio producer, producing a total crop of more than 418 million pounds in 2020. This year, however, the Iran Pistachio Association reported that Iranian growers lost about 50% of their crop due to severe frost and heat damages.
According to a report from the International Nut and Dried Fruit Council, Turkey, the third-largest pistachio producing nation, is also expected to have a “very low” crop this year compared to average.
These global production losses leave gaps for U.S. producers to fill. About 65% to 70% of U.S. pistachios are exported, so this year’s global market is in America’s favor.
The month of October kicked off with Peruvian blueberry shipments exceeding 112,000 metric tons (MT), an increase of 59 percent so far in the 2021-22 campaign.
The U.S. is in first place with 55 percent of the market share, growing from almost 35,000MT to 61,000MT.
Agraria reported Peru only exported 70,400MT last year during the same time, almost a 42,000MT increase over last year.
The country’s peak export was registered in the week September 13th with almost 16,000MT, representing a 45 percent increase year on year.
Higher agricultural productivity has led to an increase in blueberry exports this year. Regions such as La Libertad and Lambayeque have increased their contribution by 35 and 151 percent so far, respectively; making up 77 percent of total exports of the fruit.
The European market (excluding the UK) has also grown with a 32 percent increase.
China represents a market with great potential and the demand for Peruvian blueberries grew 86 percent.
To date over 6,000 kilograms have been allocated to India, a market that has recently opened for the product due to the joint work between the public and private sectors, especially the efforts from the National Service of Agrarian Health of Peru (Senasa).
Fall has arrived, and that means it’s time to get ready for Chilean Cherries. And when we say get ready, we mean get ready for some great news! Chile projects that cherry exports to the U.S. will see substantial growth in 2021/22, and for the first time, the season will run more than 12 weeks, from November through February. The Chilean Cherry Committee estimates that nearly 13,000 tons will be shipped to the U.S. market during the 2021/22 season.
The first shipments of cherries will depart Chile by early November and will continue through early February.
Chile reigns as the world’s largest exporter of cherries, and continued growth is anticipated over the coming years. While China has been the main receiver of Chilean cherries, the industry is working diligently to develop other markets, including the U.S.
Comments the Chairman of the Cherry Committee, Cristián Tagle, “Diversification and development of markets is crucial for our industry. Chile views the U.S. as a market with enormous potential, and we are committed to investing in its expansion.”
To support the increased volumes flowing into the market, the Committee will fund an expanded marketing program, encompassing numerous consumer and retail components encouraging consumers to “Cherrish the Moment”. Promotions will begin in December and continue through February, with new merchandising material communicating different occasions for enjoying Chilean cherries.
Karen Brux, managing director of the Chilean Fresh Fruit Association (CFFA) states, “Chilean cherries are a delicious addition to just about anything. Whether shared with family over the holidays, used in a special dessert for Valentine’s Day, given as a gift for Chinese New Year, or just eaten on the sofa while watching TV…there are so many ways to “Cherrish the Moment” with Chilean cherries.” The CFFA’s merchandisers are working with retailers across the country to showcase cherries to their shoppers both in-store and online. Extensive social media and e-commerce programs will provide an additional boost to awareness and shopper demand.
Hauling Idaho potatoes by truck this season is coming with higher freight rates.
Between early August to October 9, the USDA reported the average rate for refrigerated trucks from Idaho to Atlanta rose from $4,675 to $6,500, a gain of 39%. This year’s October rate was up about 40% compared with a year ago.
The truck rate from Idaho to Boston rose from $7,000 in early August to $8,500 by October 9, a gain of 21%. Compared with the same time a year ago, the October 2021 rate was 37% higher.
Refrigerated truck rates from Idaho to Chicago were rated at $4,500 on October 9, 25% up from early August and 32% above the same time a year ago.
The Idaho Potato Commission of Eagle, ID expresses concerns over having adequate truck supplies during the holiday season.
Heading towards winter the commission is urging retailers to order early in order to build potato inventories, because transportation is going to be a challenge.
The commission reports factors which should favor truck availability include higher freight rates, driver signing bonuses and strong truck demand. Factors that could decrease truckload available range from slowed truck manufacturing because of part shortages and labor shortages.
Increasing demand for truck capacity is seen with the economic stimulus, retail spending, inventory replenishment, consumer sentiment, and housing.
However, the federal stimulus package enticed some drivers and warehouse workers to make money by “sitting on their couch” as opposed to joining the workforce, the commission reported.
Owner operators now account for 62% of truckers. Some observers predicted more owner operator entering the freight business.
C.H. Robinson of Prairie Eden, MN is projecting a 5% to 6% growth in spot rates from early September to the end of the year. Less-than truck load rates remain elevated compared to the historical five-year average and the truck driver shortage is not easing.
The company notes reducing wait time for drivers should be one aim, and investing in good facilities is another.
Twin Falls, Idaho potatoes – grossing about $8500 to New York City.
Vick Family Farms of Wilson, NC is expected average volume shipments for sweet potatoes during it’s 2021-22 season, with harvest wrapping up in November just in time for the holidays.
In 2021, the company celebrated 25 years of packing and marketing its own brands.
The operation’s first packing facility was built in 1996 and it now owns and operates two packing sheds, as well as working with other local growers and sheds throughout the season.
Vick is experiencing a harvest being later than normal due to weather factors. This has resulted in potatoes not sizing up as quickly. However, being well into the harvest the company has been pleased with yields and quality.
With average yields, volume is expected to be similar to last year, thanks in part to some additional planted acreage.
North Carolina Sweet Potato Commission, noted the harvest began in early September. The grower organization anticipates the state’s acreage will be similar to last year and thus far sweet potato diggings are showing an excellent quality crop.
Between August 2020 and August 2021, NCDA reported a total of 11,971,868 40-pound cartons of fresh-market sweet potatoes being shipped. The state’s industry ships sweet potatoes 12 months a year.
The Louisiana Sweet Potato Commission is expecting good sweet potato shipments in 2021 as well — after growers dodged the bullet with Hurricane Ida.
California citrus shipments for the 2021-22 season will be down due to the severe drought.
California Citrus Mutual report this season will definitely have a lower crop.
The USDA predicts there will be a 14% decline in its orange measurement survey from September and some observers feel this estimate may be understating the dip in crop production.
CCM believes there will still be plenty of citrus shipments, noting the smaller 2021-22 crop will be much more manageable for grower-shippers.
The 2020-21 navel crop lasted longer than usual because of a weaker export market. The 2021-22 navel season got underway the last half of October.
Multiple factors have led to a lighter crop load, Creamer said.
The depth of impacts on the water shortage and the drought vary from hardly any impact to very, very drastic impact, depending on where growers are located and their surface water rights and the location of their water district.
Mandarin output also is expected to be lower in 2021-22, while lemons may see increased volume. Seedless lemons represent a small but growing segment of the industry.
Based on early estimates, mandarin supplies could be as much as 50% lower compared with a year ago.
Mandarins are as much as 70% down on existing fruit-bearing trees, but that is partially offset by new bearing acreage coming on.
Roughly 75% of the California citrus crop is grown in the Central Valley, with some lemons and mandarins produced in the coastal regions. Lemons and grapefruit are primarily raised in the desert growing areas.
Excellent Peruvian onion imports are seen this season as the early crop is show exceptional quality. It may be the best crop in three decades.
Mild, sweet, large and round with flattened tops and bottoms, Peru’s sweet onions are typically available September through April, complementing the Vidalia, Ga., region’s trademarked Vidalia onions, usually shipped April through September.
However, G&R Farms of Glennville, GA reports shipping schedules may be a little behind last year because of delays with transportation and logistics.
Bland Farms of Glennville, GA, has a corporate office and onion farms in Ica, as well as more farms in Arequipa, Peru.
Shuman Farms of Reidsville, GA., began shipping RealSweet onions from Peru in early September. The company reports very good quality and sizing.
The grower/shipper has a full-time staff and infrastructure in Peru, where there was a recent update to the facility and packing house. The company installed new grading lines and sorting equipment to improve product quality and a more efficient final repack in Georgia after passing through the Port of Savannah.
Jac. Vandenberg, Inc., the Tarrytown, NY-based fresh produce importer and marketer, is gearing up for a second year for its SUNRAYS® grape brand. After a successful debut, SUNRAYS® grapes is announcing several new developments to its 2021-2022 program which officially starts in November.
Kicking off the SUNRAYS® grape season this year will be Cotton Candy grapes packed out of Brazil, available in loose-weight bags and 1-pound clamshells.
Brazil will also become the fifth sourcing region for the SUNRAYS grape program which already has Peru, Chile, Mexico and California growers participating. As with last season, Vandenberg has carefully selected its growing partners to participate in the SUNRAYS grape program ensuring those participating growers meet strict quality and flavor requirements.
SUNRAYS® grapes are available year-round from Brazil, Peru, Chile, Mexico and California.
Another major development for the SUNRAYS grape program this year will be a limited offering of its brand new, innovative BIO bags out of Peru. These bags will be the first biodegradable, home compostable grape bags in the US market.
“Sustainability has always been at the core of the SUNRAYS® brand and we want to now make that message clear and transparent to the public with this certification,” says Paap. “What’s unique about this certification is not only is it looking at environmental sustainability but also social and economic sustainability. All of these areas play an important role in the success and longevity of the farm and product.”
Vandenberg expects to see its first growers certified early next year with SUNRAYS® bags carrying the Sustainably Grown certification by November 2022.
The harvest of new the Medjool crop started during the first couple weeks of September and trees were carrying loaded with fruit. Double Date Packing of Coachella, CA had a smaller crop last year, but is expecting a big crop for 2021-22.
Over 50 percent of the date crop is exported.
SunDate, also in Coachella, agrees noting the first date groves looks like a good crop. The company was in heavy harvest by the week of September 6th. Once the dates are harvested, they are graded stored for a few weeks to find out how good the crop is.
The Medjool variety will be harvested until about the end of October with the Deglet Nour dates picked during the last two months of the year.
Picking those dates is still a sight to behold. Though for safety reasons, packers often use automated “cherry pickers” with platforms to perform the many hand tasks needed in the life of a date (from pollination to thinning to picking), there are still many traditional pickers in the Coachella Valley that climb the trees the old-fashioned way and perform the cultural tasks 50-75 feet above ground as they cling to the tree.