This summer, reefer markets have felt the woes of reduced harvests due to harsh weather. That's kept rates from climbing, and reefer trucks have also been competing for dry van freight.
Reefer markets have been waiting for an uplift from late summer fruit and vegetable harvests, but so far, that hasn't happened. The Midwest has made gains, but not enough to make up for markets where harvests have struggled due to weather.
Van freight trends have been muted for nearly all of 2019 – we haven't seen many sharp spikes or large drops. Overall, it's been a steady decline, interrupted by higher rates in June and the first half of July.
Reefer demand trailed off in California and Texas last week, and the majority of high-traffic reefer lanes paid lower rates last week. But there were early signs of activity shifting northward.
So far in August, shippers have shown a lack of urgency, marking the weakest point for van rates in the second half of 2019. But one region saw an increase.
Truckload demand got a boost at the end of July, but that urgency slowed by the start of August. That led to a lot of mixed results on the spot market last week.
Even as the summer slump continues, July is still on pace to beat May volumes, with a national average van rate that's about 5¢ per mile higher than it was before the June peak.
Last week halted the slide in reefer rates that we've been seeing since the Fourth of July. Improvements out of California played a major role in that.
The summer slowdown has arrived for spot market truckload freight. It’s typical for prices to drop around this time of year, but declines in reefer freight and oil field activity are also adding a drag on van rates this summer.
Reefer rates and volumes continued their summer slide. The decline stings more since reefer trends have disappointed so far this year. Unpredictable weather has hurt produce harvests, and reefer markets have suffered as a result.
It's typical for rates to fall after the Fourth of July, and this year was no different. Now that the holiday has passed, there's less urgency for the freight that's moving.
