Posted on 04 Jan, 2017
Categories: Freight Rates
Reefer trends were off the charts to close out 2016. That’s because the shipment of southern crops happened to overlap with additional demand for fall crops that moved out of storage. Put it all together, and you get an unusually strong rebound in reefer rates, with a national average rate that matched the June peak.
Darker-colored states have higher load-to-truck ratios, meaning that there's less competition for reefer loads in those states.
Rates were up almost everywhere in the last week of 2016. Load counts soared in Nogales, AZ, and McAllen, TX, with Mexican produce crossing the border. The next big event is the Super Bowl, so expect to see a lot of avocados.
Rates include fuel surcharges and are based on real transactions between carriers and brokers
- Apples and a few weeks of insanely cold weather contributed to the soaring prices from Grand Rapids to Cleveland. The average rate surged ▲64¢ to a whopping $3.63/mile
- Chicago to Denver soared ▲65¢ to $2.96/mile
- Chicago to Kansas City also paid ▲37¢ for an average of $2.50/mile
- The lane from Green Bay to Des Moines surged ▲41¢ to $2.39/mile
- The average reefer rate on the lane from Dallas to Phoenix rose ▲48¢ to $1.71/mile
There was also a spike in rates out of Florida. Lanes like Lakeland to Baltimore and Miami to Baltimore each surged more than ▲60¢ per mile, but volumes were low. Those rates are already starting to come back down, so that was likely a short-term trend tied to the end of the year.
A few lanes also slipped post-Christmas
- Grand Rapids to Madison lost ▼24¢ at $2.49/mile
- Stronger pricing out of Florida led to the lane from Philly to Miami dipping ▼19¢ to $1.62/mile
- Not every lane out of Florida did better. Miami to Northern New Jersey came down ▼23¢ to $2.02/mile
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