By TOM KARST January 4, 2022
Truck rates are at historic highs for the produce industry, and that reality presents challenges to apple marketers in the Northwest and other regions.
For example, the USDA reports that rates from Washington’s Wenatchee and Yakima regions to Boston rose from a mostly range of $6,800 to $7,300 in early October to a range of $11,700 to $12,800 in early January. That is nearly 40% higher than at the same time in January 2021, when rates to Boston were in a mostly range of $8,700 to $9,200, according to the USDA.
Compared with a year ago, per-carton transportation costs for Washington apples to Boston increased from $8.70 per carton a year ago to $11.70 per carton in early January.
Likewise, truck rates from Washington apple country to Chicago rose from $6,800 to $6,900 in early October to a mostly range of $8,800 to $9,300 by early January. That is close to 50% higher than the same time last year, when rates were in a mostly range of $5,800 to $6,300 per truckload, according to the USDA.
Rates are elevated in other regions, but Eastern apple shipping regions are closer to big Northeast cities, giving those close-by shippers a freight advantage over Western U.S. suppliers.
Here are responses from apple marketers about how they are coping with high freight rates:
New York shipper: “We are constantly fighting to find the best rooting options to keep costs down, but it has definitely been a challenge.”
New York shipper: “Truck rates are most certainly high; however, being located on the East Coast, as are many of our retail partners, (provides) somewhat of an opportunity to offer great apples at potentially better prices than those shipped from farther away.”
Washington shipper: “We’ve taxed our creativity in every way imaginable, but the rates seem to find no stopping point on how high they can climb.”
Michigan shipper: “Long-standing relationships with trucking companies and brokers, as well as giving them as much lead time as possible, helps us navigate the challenges.”
Washington shipper: “We are consolidating pick-ups for customers.”
Washington shipper: “This has certainly been a challenge. We are working daily to ensure our fruit leaves in a timely manner, but transportation, in general, has been a big challenge in 2021.”
Washington shipper: “National freight rates are at an all-time high; it is not unique to our industry. With 10s of thousands less trucks on the road, it makes it difficult to move product from one side of the country to the other. We’re all experiencing the effects of the truck shortage and we’ve had to adapt, which means paying higher prices. As such, we will see increases in product pricing on the retail shelf.”
Washington shipper: “Transportation is going to be a challenge for every supply chain for the foreseeable future. We have a dedicated logistics team with a wealth of experience and carrier relationships that we will continue to lean on for best-in-class service, reliability and fair pricing.”
Refrigerated truck rates from Yakima Valley and Wenatchee District Washington
($ per truckload)
Dallas Boston
Weekly range Weekly range
10/9 $6,500-7,400 $6,500-7,700
10/16 $6,500-7,400 $9,800-11,500
10/23 $6,500-7,400 $9,800-11,500
10/30 $6,800-8,200 $10,400-12,000
11/6 $7,200-8,400 $10,500-12,000
11/13 $7,000-8,600 $10,500-12,000
11/20 $7,600-9,000 $10,600-12,100
11/27 $7,600-9,000 $10,600-12,400
12/4 $7,800-9,000 $10,800-12,500
12/11 $8,000-9,000 $10,800-12,500
12/18 $8,000-9,000 $10,800-12,500
12/25 $8,000-9,000 $11,000-13,000
1/1 $8,500-9,500 $11,500-13,500
Source: USDA
