Freight rates continue upward trend for produce - The Packer

Freight rates continue upward trend for produce

03/27/2014 03:00:00 PM
Tom Burfield

“(CARB) has required substantial investments for those trucking companies operating in California, which has increased costs and/or lowered the supply of trucks there,” he said.

Rising costs of health care and other costs of doing business also will bump up freight rates, Stoiber said, especially for produce shipments.

“A carrier who has a refrigerated trailer and wants to haul produce knows he is going to maximize his rate per mile,” he said. “But he’s taking on additional risk because of it.”

The frequency of claims for temperature abuse or problems like shifting loads are higher in produce than in more stable categories, he added.

Freight rates could increase about 6% on dry goods compared to last year, Lund said. And they could go up 6% to 10% on refrigerated products.

A driver shortage is becoming more likely as the economy picks up, Moore said.

“The softer economy over the last few years has kept it from being dire,” he said.

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Doug Stoiber    
Raleigh NC  |  April, 09, 2014 at 12:23 PM

I don't feel nearly as confident about the driver shortage now as I did when I spoke to Tom for the article.

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