PRODUCE SEASON SHIFTING THE MARKET

It’s spring… and although it doesn’t feel like spring in Ohio, it is spring, and produce season has begun. With the short shelf life on produce, on-time delivery and properly regulated transportation is essential to avoid spoiling and losing revenue. Working with such a time-sensitive and in-demand commodity creates a shift in the transportation and logistics industry. During produce season, the driver shortage is felt across the industry, especially as capacity issues rise and rates increase and become more unstable.

How exactly does produce season shift the market?

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1. SHIFTS REEFER TRUCK DEMAND

Produce crop volumes increase from the beginning of spring to early summer and with the sensitivity of produce I discussed above – the demand for refrigerated tricks is at an all-time high and rates inevitably increase. Carriers use this lucrative time to capitalize on the demand for reefers and put more emphasis on refrigerated loads, increasing demand and rates for other trucks and transportation methods.

2. CREATES INSTABILITY WITH TRUCK RATES

The increased demand also leads to unstable truck rates. As trucks are booked and loads are secured rates can increase and decrease, making securing a truck at the best rate and in a timely manner increasingly difficult.

3. MAKES DRIVER SHORTAGE MORE APPARENT

The augmented importance of reefer freight also highlights the diminishing supply of drivers available to handle all the regular dedicated freight plus the additional produce loads the season brings. Inevitably, less truck capacity and fewer drivers to drive the trucks also increases rates.

4. CONTINUED ELD DISRUPTION

Lastly, With the electronic logging devices increasing and changing drive times in a sector of the industry where quick and timely delivery is essential. Where a 500 to 700-mile runs may have been a one-day delivery are now two-day deliveries – this increases the time in-between when fresh fruits and vegetables arrive at groceries and restaurants and leads to greater risk of food spoiling and therefore losing revenue.

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Ultimately, when produce season rolls around shippers, carriers and third-party logistics providers need to be prepared to handle this shift in the industry. The 30+ years of experience Kingsgate has in the industry has helped us build our carrier network for high volume seasons and taught us to prepare our team to handle any and all roadblocks that may come our way, so our customers’ feel safe their shipment is receiving the attention it deserves.

How do you prepare for high-volume and volatile shipping seasons?

All the Best,

Jeff Beckham