The Rollercoaster Market
The market that tends to see the most fluctuation is definitely the reefer market. The ups and downs are so drastic that the swings often occur weekly.
That holds true in recent weeks. Just take a look at the graphic from DAT to the right. The number of loads available in the spot market compared trucks continues to flow like a rollercoaster. In theory, as we continue to get into peak produce season, these numbers should flatline on the higher end.
The closer we’ve gotten to produce season this year, the quicker reefer rates continue to drop. Reefer rates are always higher than van rates due to the extra cost and risk involved with temperature-controlled freight, but the gap isn’t as big as it has been in recent history. In fact, in some parts of the country, rates are only thirty cents per mile higher.
Rates are still slightly higher than they were a year ago, but not by much. The reefer rates in April are averaging over thirty cents less than they were only three months ago. Will this trend continue? Probably not in the short-term because load volume will pick up over the next couple of months and mess with the supply and demand ratio.
The good news is, for the first time in a long time, trends are starting to turn in our favor. Whether or not that will continue and be sustainable is yet to be determined.
Do you need temp-controlled freight moved? Are you tired of unreliable service? Do you value honesty and proactive communication? If you answered “YES” to any of those questions, you need to give us a call. We can help with all of those things…AND…save you money in the process.
Give us a call at 513-575-7645!