Spot Rates Surge in Produce Corridors
What happened
Dry van rates from Plant City, FL, to Des Moines, IA, jumped ~38% due to Florida crop freezes and diesel price increases. Rates are now nearing $2,100.
Why it matters
The freeze in Florida damaged crops like strawberries and blueberries, reducing the available supply for transport. This scarcity increases demand and, consequently, spot rates for trucks moving produce out of the region. Diesel prices are up, adding to the cost of each mile. Higher fuel costs get passed on to shippers and reflected in higher rates to compensate for the increased operational expenses. Expect upward pressure on rates in other produce corridors as well. Similar weather events or regional supply chain disruptions could trigger comparable spikes in spot rates nationwide.
Key numbers
- Dry van rates from Plant City, FL, to Des Moines, IA, jumped ~38% due to Florida crop freezes and diesel price increases.
What happens next
- Expect upward pressure on rates in other produce corridors as well.
- Similar weather events or regional supply chain disruptions could trigger comparable spikes in spot rates nationwide.
Sources
Quick answers
What happened in Spot Rates Surge in Produce Corridors?
Dry van rates from Plant City, FL, to Des Moines, IA, jumped ~38% due to Florida crop freezes and diesel price increases. Rates are now nearing $2,100.
Why does Spot Rates Surge in Produce Corridors matter?
The freeze in Florida damaged crops like strawberries and blueberries, reducing the available supply for transport. This scarcity increases demand and, consequently, spot rates for trucks moving produce out of the region. Diesel prices are up, adding to the cost of each mile. Higher fuel costs get passed on to shippers and reflected in higher rates to compensate for the increased operational expenses. Expect upward pressure on rates in other produce corridors as well. Similar weather events or regional supply chain disruptions could trigger comparable spikes in spot rates nationwide.
