According to the USDA, potatoes are typically the largest produce commodity shipped in the U.S., with the truckload season typically peaking in mid-November around harvest time. Potatoes are grown commercially in 30 states in the United States, but most potato farming is concentrated in the Pacific Northwest. Idaho and Washington are the top potato-producing states, accounting for nearly 60% of the country’s total production. Ranking third is Wisconsin, with around 9% of annual production.
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Despite weather challenges, Wisconsin is harvesting strong potato crops this season, though heavy rains in May reduced yields in some low-lying areas. The acreage is roughly the same as last year, at roughly 66,000 acres, said Dana Rady, director of promotion, communication, and consumer education for the Wisconsin Potato & Vegetable Growers Association.
Tom Karst from The Packer writes, “In 2023, the USDA reported that Wisconsin truck shipments totaled 700.7 million pounds of potatoes. The state shipped fresh potatoes every month of the year, with the lowest volume in July and the peak volume reported in November. Wisconsin accounted for 9% of total U.S. truck shipments of potatoes in 2023, the USDA shows, trailing only Idaho (39%) and Colorado (20%).
Market watch
All rates cited below exclude fuel surcharges, and load volume refers to loads moved unless otherwise noted.
This week, we are focusing on the markets in the Pacific Northwest, where reefer carriers are gearing up for the upcoming Fall produce and Christmas tree seasons. Outbound reefer linehaul rates are on the rise, with a typical peak around Thanksgiving. The primary produce hauled by reefer carriers includes apples, potatoes, onions, and pears.
In the Spokane, WA market, reefer linehaul rates have increased by $0.02/mile on a 20% higher volume in the last month after hitting bottom in June. The average outbound rate in Washington state is currently at $1.85/mile, the same as last year. However, it is expected to increase to $2.34/mile by Thanksgiving, representing a $0.54/mile increase. On the Spokane to Los Angeles lane, linehaul rates are projected to average $1.55/mile this week, with a peak of $2.50/mile on November 17th, indicating a 61% increase over the next six weeks.
Load-to-Truck Ratio
The volume of reefer load postings decreased by 8% last week and 32% year over year. According to the USDA, truckload produce volumes last week were 4% lower than last year, with California’s volume recovering last week, increasing by 12% w/w but still 4% behind last year’s truckload volume. Carrier equipment posts were 4% lower last week and 21% lower year over year, decreasing the reefer load-to-truck ratio (LTR) to 5.68.
Spot rates
The national average reefer linehaul has remained flat for the fourth week on a 1% lower volume of loads moved. At $1.97/mile, reefer spot rates remained almost identical to last year and $0.02/mile lower than the 3-month trailing average.