Focus on Logistics with Cain Adams
Trinity Logistics, Boise Office Longboard Logistics, LLC
The much-anticipated Northwest onion season has arrived. And guess what? The fires have too.
This week has been a flurry of activity as we notify carriers to start looking for loads out of Idaho, Oregon, and Washington. And believe it or not, it seems to be working. We’re being asked for loads before we even have them in hand. This is a good thing because if we don’t have something, someone else will. By getting more trucks interested in the Northwest, we’re directing traffic better than a bored cop at a high school football game. The more trucks we have, the easier it will be for sheds to get their loads off the floor at a good rate. If we don’t spread the word early, trucks might just stick to their old lanes like a worn-out favorite pair of jeans.
Now, let’s talk about rates. The logistics news reels are buzzing, saying rates will be higher this year and the freight bottom is here. Truckstop.com reported that 61% of participants in their poll expect demand growth over the first six months of the year. We did see rates come up a bit more than expected. Spot rates appear to be bottoming out, with this fall anticipating a rise in rates. But we think it will depend on the lane and equipment. Every dispatcher is set on asking us for more money on every single load. They’re scrapping for that extra Benjamin, and we get it. This past year has taken a lot of carriers and brokers down faster than a cat video goes viral. Brokers too are scrapping for that dollar. It’s just part of the slowdown and it’s game on. The Chapter 11 numbers are staggering. Later in the year, I’ll do a write-up about those numbers as we think more Chapter 11s are coming like a firestorm.
Speaking of fire, Oregon no longer has the biggest fire in the nation. An arson attack near Chico in northern California has spread over 368,000 acres and is now the largest in the country. But Oregon’s Durkee Fire in Baker and Malheur counties remains a significant threat. These fires are just north of Vale, Oregon, and west of Ontario, Oregon. The Durkee Fire has blackened over 289,000 acres and is nearly 50% contained. Come on 100%! Interstate 84 has been closing at night and some days due to smoky conditions, making it too dangerous to drive.
We do not know how the fires will affect the onions themselves. Maybe the smoke will cool the weather off a little? This week we got some relief from a cold front, yet by Saturday, we are going to see 107 degrees here in the Treasure Valley. So, if you’re booking a truck that has to run the I-84 corridor, be sure to spread the word about the highway possibly closing at night so your carriers can plan a good spot to park. Many times, they don’t know until they’re stuck on the highway.
This week is starting out light with sheds getting prepared. We’re seeing Warden, WA, Pasco, WA, and Hermiston, OR loading this week. We also heard one or two sheds in Ontario, OR starting up this week. The weather is great for flatbeds and Conestoga trailers. Use them as much as you can. This keeps delivered prices down a bit as reefers are still trying to get back into the Northwest lanes. Cherries are done this week, but potatoes should be coming into the sheds out of Washington and will compete for reefers.
Overall, we think it should be a great year for onions. Trucks are not hard to find, and I’m sure brokers are blowing up your phones daily. When the phones stop ringing, then you know there are less trucks available, or the brokers have enough on their plate. The only direction prices will go is up. Until then, just stay on cruise control and get your onions delivered.
Oh yes, and if you are a shed loading flatbeds, be sure to tell drivers to pull those tarps down front, back and sides when they hit rain. Some are getting hired on and not being given these directions by whoever hired them. For 15 years we give the exact same speech and if we see weather ahead, we text drivers to remind them. Every single flatbed should be told. Period. Sorry, I get angered seeing a lack of responsibility. Every load is important.
On a lighter note: An onion joke.
Why do onions from Idaho, Oregon and Washington make the best of friends? Because they know how to peel away the layers and get to the heart of the matter!
Cheers, and as always, we hope your August is an amazing opener to onion season! Let’s go!
Cain Adams
