The 2021 produce season is shaping up like no other for California brokers, carriers and shippers, given how tight capacity already is and how much higher reefer spot rates are compared to this time last year.
Out of more than 40 vegetable crops grown in the Rio Grande Valley in the McAllen, TX, freight market, only three are hopeful to survive, according to Tom Karst from The Packer: onions, cabbages and potatoes.
Late-season and long-lasting apples are shipping from the Grand Rapids, MI, market, where outbound capacity is tight this week. Spot rates on the lane to New York are averaging $4.44/mile.
Last week’s invasion of freezing Arctic air delivered the first subzero temperatures to cities across the Plains and Midwest where, temperatures have consistently been well above average in recent months.
The decrease in domestic volumes has been significant and is driven mostly by the large number of closures of temporary shutdowns in the foodservices industry.
