Posts Tagged “supply”
Refrigerated equipment is in tight supply in a number of areas around the 
country, but it could be much worse. Less than bumper sized crops in several areas is easing some of the pressure for trucks. California’s San Joaquin Valley stone fruit crop is down from a year ago. Central and southern Georgia fruits and vegetables were hit hard by inclement weather during the spring. Watermelons in Texas and some parts of the east coast were also victims of bad weather.
The new apple season will be launched in only a few weeks and crops were decimated in Michigan, Ontario and parts of New York state.
Thus, when folks complain about California rates hitting $6,000 to the Mid-west and $9,000 to the East Coast, with a little more favorable weather conditions in various parts of the USA and Canada, demand for refrigerated equipment could have been worse – resulting in even higher rates on produce hauls. Still, there comes a point when rates reach a certain point, that retail prices for fruits and vegetables rise, and at a certain there is consumer resistance to high the costs.
Whether talking availablity of equipment, volume of fruits and vegetables, as well as the quality of the product — and let’s not forget the availability of professional drivers – many factors can result in the final equasion for supply and demand….If and when this economy ever turns around, produce shipments will be receiving a lot more competition as many drivers will choose to haul other things, which is not as demanding and risky as loads of fresh produce.
Southern Californa citrus and fruit – grossing about $9000 to Boston, sometimes more.
Salinas Valley vegetables and berries – about $6200 to Chicago.