Written By: Steve Daniels, Account Executive at BlueGrace Logistics
We’re one day away from April, and 2016’s produce season is almost here. Truckload shipping rates are already on the rise and capacity is increasingly getting tighter. The reason behind these trends is simple economics; specifically you can blame supply and demand.
During produce season there is an abundance of freight to be shipped which gives truckload drivers and carriers the ability to raise their rates beyond what you may expect during other times of the year. In addition to spikes in pricing, you will also find that some lanes are more difficult to cover than usual.
Produce season starts in April and typically returns to normal around July along with market rates, but depending on demand, it can go well beyond that.
With that said, there’s a few steps your company can take to make sure your supply chain doesn’t go bananas (pun fully intended) this produce season.
- Know the season and which regions are impacted the most. Produce season starts in April and typically returns to normal around July along with market rates, but depending on demand, it can go well beyond that. Rates will spike the most on truckloads leaving the south and you can also expect the same for loads leaving California. You will also find it more difficult to cover truckloads on lanes that are moving away from hotspots with a lot of produce freight.
- Communicate your needs to your freight provider. A reliable and trustworthy provider is one of the best assets you can have during produce season as you want to have someone in your corner that understands your needs and provides a customized solution for you without breaking the bank. For instance, an honest provider may recommend taking advantage of LTL volume rates for a shipment that was originally intended to go partial truckload to help you avoid paying produce season premiums.
- Ship via BlueGrace Logistics Truckload! BlueGrace’s Truckload Division has years of combined experience in the industry and we have long-term relationships with hundreds of truckload carriers. Our buying power translates into the best possible pricing for you and our network of trusted carriers means that we can offer reliable solutions that are always available.