Reefer demand picks up ahead of Thanksgiving

November 10, 2022

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The total number of loads posted to the DAT MembersEdge load board increased a little more than 3% last week and the number of van loads rose by nearly 4% and was up for the second week in a row. Reefer load posts rose 13%, a sign that holiday groceries are on the move, while flatbed load posts declined 3.5%, a typical week-over-week drop at this time of year. The number of trucks on the network fell for the second straight week.

National average broker-to-carrier spot rates were unchanged at $2.43 a mile for vans, $2.74 a mile for reefers, and $2.75 a mile for flatbeds. These rates are based on actual loads moved from Oct. 30 through Nov. 5.

Spot rates are “all-in” rates negotiated between the broker and owner-operator and do not include a separate fuel surcharge. Removing an average surcharge amount, spot line-haul rates were $1.72 a mile for vans, $2.03 a mile for reefers, and $2.03 for flatbeds.

The national average van load-to-truck ratio increased slightly to 2.7 last week, meaning there were 2.7 van loads for every truck posted. The national average reefer ratio climbed from 4.2 to 4.9 on stronger posting activity while the flatbed ratio dipped from 11.4 to 10.8 as a national average.

Market to watch: St. Cloud reefers

It’s Thanksgiving soon. Let’s talk turkey.

Frozen whole-bird turkeys are produced and stored year-round. Fresh turkeys are raised in the summer and fall and then processed and shipped to wholesalers and retailers starting after the first week of November.

Nearly 58% of U.S. turkey production comes from just five states: Minnesota, North Carolina, Arkansas, Indiana, and Missouri. In Minnesota, St. Cloud is the market to watch.

DAT: Reefer loads to truck ratios, St. Cloud, Minn.

On MembersEdge, the St. Cloud market spans most of central Minnesota where the reefer load-to-truck ratio was 11.3 last week, well ahead of the national average.

Reefer rates from St. Cloud to Chicago averaged $3.29 a mile, on par with the October average. St. Cloud to Cleveland, Ohio, averaged $3.44 a mile, 8 cents higher than the October average.

Another reefer market to watch before Thanksgiving: North Carolina.

North Carolina accounts for 66% of annual sweet potato volume, and more loads of sweet potatoes move in November than any other month. Most ship out of Eastern North Carolina—the Wilmington, Greensboro, and Raleigh markets. Reefer load posts in Wilmington were up 28% week over week and the load-to-truck ratio there was 18.7.