Posts Tagged “diesel fuel prices”
U.S. diesel fuel prices are rising anywhere from 11 to 49 percent depending upon what part of the country one is looking at, according to the International Fresh Produce Association.
For an industry built on speed and temperature control, these increases are not just incremental—they are structural. Cold chain logistics, from refrigerated trucks to ocean containers, depend heavily on fuel stability. As surcharges are added across ocean, air, and land transport, the cost of simply moving fresh produce is climbing in real time.
There are early signs of adjustment. Freight markets are resisting sharper increases due to underlying demand softness, with some carriers offering discounts below announced rates. However, structural risks remain.
Truckers are certainly feeling the pain. According to the U.S. Department of Energy the average cost of number 2 diesel fuel for April 13th was $5.39 per gallon, compared to $4.80 on March 9. A year ago the average price was $2.15.
There will be fewer tangerine and mandarin shipments from the top producing states this season…A look is taken at truck demand, rates and fuel costs…Plus, here is a glimpse at the top 10 potato shipping states.
California is expected to ship 21 million boxes of tangerines and mandarins this season, down from 23.9 million in 2016-17.
Florida is projected to have 860,000 boxes, down from 1.62 million last season, with the dramatic decrease due to the adverse affects of Hurricane Irma.
The Wonderful Co. of Los Angeles and Sun Pacific of Pasadena, CA are two of the larger shippers of the citrus.
Truck Demand and Rates
While demand for refrigerated equipment and qualified drivers has been getting a lot of attention, diesel fuel price are nearly a three-year high, adding the costs of trucking operations. According to DAT Trendlines diesel fuel nationally average $3.02 per gallon in December 2017, which was 16 percent more than in December 2016.
The Allen Lund Company of LaCanada, CA, like many other companies, have noticed the economy really taking off. The transportation firm is seeing 280,000 truck loads a year, a 17 percent increase from the previous year.
Another sign things are looking up for the U.S. economy is the increase in Class 8 truck sales. Over 300,000 Class 8 tractors were sold in 2017. When those trucks are delivered throughout the coming year, trucking capacity will be better.
The Wall Street Journal recently reported analysts are expecting long-term contract rates which shippers negotiate with carriers should increase between 5 percent and 8 percent this year.
Top 10 Fall Potato Producers for 2017
Total U.S. fall potato crop 399,840,000 cwt. Total U.S. Crop 441,310,000 cwt.
| RANK | State | Production (hundredweight) | Percent of Total
U.S. Fall Crop |
| 1 | Idaho | 131,330,000 | 32.8% |
| 2 | Washington | 99,000,000 | 24.8% |
| 3 | Wisconsin | 29,150,000 | 7.3% |
| 4 | North Dakota | 25,160,000 | 6.3% |
| 5 | Colorado | 21,530,000 | 5.4% |
| 6 | Oregon | 21,400,000 | 5.4% |
| 7 | Minnesota | 18,430,000 | 4.6% |
| 8 | Michigan | 18,000,000 | 4.5% |
| 9 | Maine | 15,040,000 | 3.8% |
| 10 | Nebraska | 9,070,000 | 2.3% |
| All others | 11,750,000 | 2.9% |
Source: USDA-NASS
2017 Minnesota Crop Production Report
Fall potato production in Minnesota was 18.4 million hundredweight (cwt.) according to the USDA, National Agricultural Statistics Service. That is a 9.7 percent increase over 2016. Planted acres at 46,000 was up 3,000 and harvested acres were up 3,500.