You’re right in the thick of it! Peak season for refrigerated freight hauling food and produce in the US typically runs from late spring through to the end of summer (roughly April to August). This is when we see a surge in harvesting and shipping of fruits and vegetables across the country. We are at the point now, where outbound produce continues to transition further north, so it’s important to keep an eye on what’s ahead in the coming weeks.
Current Landscape:
- High Demand, Tight Capacity: Right now, demand for refrigerated trucks (reefers) is at its peak as farmers move their summer harvests. This translates to less availability of reefer trucks and potentially higher freight rates for shippers.
- Regional Variations: The peak can start earlier in warmer regions and move north as the weather warms. So, depending on your location, you might be right at the heart of the busy period. Either way, you might be struggling to find outbound capacity.
Challenges for Shippers
- Securing Trucks: With fewer reefer trucks available, shippers might struggle to find trucks for their shipments. This can lead to delays and missed delivery windows, increasing the risk of losses due to spoilage during the transportation process.
- Rising Costs: Increased demand during peak season often pushes freight rates higher. Shippers might need to factor in these additional costs when planning their budgets.
- Maintaining Product Quality: Ensuring consistent temperature control throughout the supply chain is crucial for perishable goods. Shippers need to work closely with their brokerage and carriers to avoid spoilage during transport.
Challenges with Freight Brokers
- Communication and Transparency: Shippers might face challenges getting clear communication from brokers regarding real-time availability, pricing, and potential delays. This is why working with a brokerage that provides a single point-of-contact service.
- Finding Reputable Brokers: Not all brokers are created equal. It’s important to find a broker with experience in refrigerated transportation who understands the complexities of produce shipping.
- Limited Control: When using a broker, shippers relinquish some control over the transportation process. Trusting the broker to find the best carrier and route is essential. Brokerages that take a white-glove, or custom, approach can instill confidence by coupling a forward-looking service with an understanding of where their leveraged capacity is moving in and out of at any given time.
Tips for Shippers
- Plan Ahead: The earlier you can book your shipments during peak season, the better chance you have of securing capacity at a reasonable rate. For an easy-to-use tool, check out our departure time calculator.
- Work with an Experienced Broker: A good broker can help you navigate the complexities of peak season and find reliable carriers that meet the exact needs of every load.
- Be Flexible: Be open to alternative shipping routes or modes of transportation if necessary.
- Communicate Clearly: Maintain clear communication with your broker regarding your specific needs and requirements.
While specific data might be hard to come by publicly, here’s what we can glean about quantitative trends for the produce freight season leading into July 2024:
Demand:
- Generally Upward Trend: Most sources point towards a robust produce season in 2024. This means continued high demand for refrigerated trucks throughout July and into August.
Pricing:
- Potential for Stabilization: There have been predictions of a slight flattening in the previously expected rise of dry van linehaul costs. This might signal some stabilization in reefer rates as well, but they’re still likely to be higher than usual.
Capacity:
- Still Tight: While carrier exits haven’t been at the expected pace, reefer capacity is likely to remain tight through July and August due to the high demand.
While the landscape for produce is full of variables, nothing is more important than the ability to secure reliable transportation. Although we are moving toward the end of the summer harvest season, it’s always a good idea to take stock of your brokerage partners and address gaps and unresolved issues. If you need an experienced broker to meet your refrigerated shipping needs, get a FREE QUOTE today.
