AS FRUIT VOLUME INCREASES, SO DO FREIGHT RATES

Now that the summer fruit items, such as peaches, nectarines, apricots, plums, grapes, and melons are finally starting to come on, trucks are starting to tighten up, and rates climb. We mentioned last week that we will easily see rates to the east coast closing in on $8000 for Memorial Day business, and that WILL be the case, with truckers demanding that as early as this weekend to various east coast destinations. This is only the beginning.

Long range weather for the next 10 days continue to show normal temperatures in the Salinas area, with days in the high 60s to low 70s, while the Fresno area shows highs in the low 90s. The desert growing regions, where the melons and grapes are coming from, are forecasted for 100-105 degree highs, also normal. No rain in any regions.

Trucks continue their pre-Summer, Memorial Day push rates. We are already seeing quotes as high as $8000 for multiple pickups to the far east coast. This could be the norm by the end of this week, and into next. These climbing rates make a HUGE impact to delivered prices for ALL commodities.

 

LETTUCE–good supplies, good, quality, and good demand.  This strong demand is driving the market upwards, as there are a LOT of ads out there for lettuce. May is definitely “lettuce month”. When prices start going up the way they have been, we usually see a wider range in price, depending upon the area and shipper. We are certainly seeing that, with as much as a $3.00/box spread. Again, quality is improving to the point that we are seeing some of the best we have seen all year.

 

BROCCOLI–as mentioned last week, there are actually lower quotes on crowns than bunch 14s and 18s. This is because supplies coming out of Virginia, Georgia, and other Atlantic seaboard states are coming on strong with crowns. This will keep the market from going up out west. Still, some shippers such as T&A and Dole are fighting to keep their prices up. As a result, we are seeing as much as a $3-4.00/box SPREAD in price on crowns out west. Quality is VERY nice.

 

CAULIFLOWER–the roller coaster ride is heading downward. We said last week that there will be some deals available this week, and there are. Good time to shop around for deals on 9s or 12s. What some shippers are quoting, and what they are actually SELLING for could be two different animals.

 

LEAF ITEMS–slowly, the prices on romaine, red, and green leaf are coming down. Supplies aren’t overly heavy in Salinas, as shippers normally don’t plant too heavily because of local deals that start up this time of year throughout the mid west and east coast. There are deals on all leaf items, so, again, shop around. For most shippers, quality is VERY nice.

 

CELERY–for whatever reason, the shippers are pushing prices up on all size celery. With the climbing freight rates, we don’t see this trend continuing. It just makes delivered prices too high. When you add $10-12.00/box for just FREIGHT, delivered prices easily get over $20.00/box, and we are now approaching $25.00 for some labels to the east.

 

STRAWBERRIES–with high priced cantaloupes, grapes, peaches, plums, nectarines, and cherries, stores will continue to advertise reasonably priced strawberries for Memorial Day. This is keeping demand strong, and prices firm. Quality continues to improve, and we are now seeing some of the best we have seen all year.

 

Ed Brem

ed@producewest.com

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