Shipping rates are drifting down with the summer produce season. As growing season comes to an end in Florida, South Texas and Southern California, marketplace pressure recedes and rates decline for vans, reefers and flatbeds.
According to the DAT RateView, this pattern will continue for a few more weeks, followed by a second peak in late August through much of September. It cites as evidence that economic conditions are improving, as indicated by an estimated 4% GDP growth in the second quarter.
“Imports are up, generating additional freight. Job growth has been fairly steady for the past six months, and there has been a strong upward trend in manufacturing,” the report states. “As a result, rail carloads and for-hire truck tonnage both rose in June.”
Those indicators, among others, support an improvement in consumer confidence, which is at its highest level since October 2007, according to the Conference Board. That news is expected to encourage retailers to expand inventories in anticipation of a busy Christmas season. That will impact on truckload volume and rates soon.