FREIGHT RATES CLIMBING

Climbing freight rates are the big news this week. Rates last weekend, which is normally a tough time to find trucks due to the Memorial Day holiday, reached $9000 for loads to far east destinations, such as Boston, and New York. This week, due to the short work week, continue the same pattern. There is big demand for trucks to haul melons, grapes, stone fruit items, as well as the normal demand for veg and berries. There should be more trucks showing up this weekend, as they try to get back into their normal delivery pattern, but rates will probably remain strong. Keep in mind that these high freight rates affect ALL delivered prices.

Long range weather show continued mild temps in Salinas and Santa Maria areas, with early morning overcast, clear and breezy during the day. Fresno growing areas hitting the high 90s with a few 100’s and the desert melon regions are easily hitting 100 degrees during the day. All are normal for this time of year.

Trucks, as mentioned, are reaching for the sky with their rates, and easily getting it. There should be a few more trucks this weekend, then more of a normal pattern starting next week. Another 2 weeks, and we’ll be dealing with 4th of July business, which should show another spike in rates.

 

LETTUCE–lighter supplies of lettuce this week are allowing shippers to push up their markets $2-3.00/box over where they were last week. With the short work week, we see demand holding firm. As far as raising prices higher than they are currently, we aren’t sure because of the high freight rates pushing delivered prices upwards of $25.00 to the east coast. That may freeze demand. Quality is holding up nicely.

 

BROCCOLI–stronger market here, too. Crown material a bit more scarce, so that market is going up, while the bunch market not as much. The past few weeks we commented that bunch was even higher priced than crowns with some shippers. That has changed, and gone back to normal. The overall market for crowns should back off by the end of this week.

 

CAULIFLOWER–a very wide range in price, with as much as a $-6.00/box SPREAD in price, depending upon the shipper and area. This is another market that we aren’t sure will hold up as we get into the weekend.

 

LEAF ITEMS–plenty of red, green, and romaine, and prices are flexible. There is local leaf throughout the country, keeping prices from going up.

 

CELERY–not much change. Larger size 18s and 24s continue lower priced than the smaller sizes. High freight rates will keep prices from going up here, too. Also, Michigan isn’t that far off.

 

STRAWBERRIES–plenty of berries around now, and prices are slipping. Driscoll is still holding on tough, and quoting $2.00/box, or so, higher than the general markets. Still, with demand and volume picking up, and prices going down for tree fruit, melons, and grapes, demand for berries will drop, and shelf space shrink for strawberries to the point that even Driscoll will be looking for business.

 

Ed Brem

ed@producewest.com

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