Focus on Logistics
By Cain Adams
Trinity Logistics, LLC / Longboard Logistics, LLC
The holiday season is upon us, bringing warmth, joy, and a sense of togetherness to families and friends across the country. As we move into the festivities, the weather is shifting just in time to benefit onion sheds that rely on cooler temperatures to maintain optimal storage. Flatbeds have taken a seasonal rest, while reefers are humming with activity, ensuring produce and perishables reach their destinations. Yet, amidst the cheerful hum of the season, consumers are noticing their wallets feel a touch lighter. If you’ve got kids, you know the drill—one day you’re flush, and the next you’re eyeing that credit card statement post-Christmas.
Thanksgiving arrives a little later this November, and the race is on for timely deliveries. Here in the Northwest, spot market reefers are in peak demand, yet the consistency of shipments from the East to West Coast is lacking. The return routes from East Coast to West Coast are oversupplied by trucks, putting downward pressure on rates. Meanwhile, carriers hauling Westbound loads are hoping for an early holiday miracle in the form of increased rates. Currently, spot market prices range from $2.50 to $3.25 per mile heading East, while east-to-west runs see a drop to $1.00–$2.00 per mile. It’s an imbalance we’ve seen before, but this year feels particularly skewed.
In Yuba City, California, the season’s festive spirit is on full display as one of the world’s largest Sikh celebrations begins. The Sikh religion, with roots in northern India, adds a unique influence to freight dynamics. For those unfamiliar, drivers donning turbans typically hail from Sikh backgrounds. This festival, drawing between 100,000 to 200,000 attendees over three days, impacts freight rates as many drivers take part, impacting capacity. Yet, for those continuing to work during the holidays, there’s an incentive—rates on the rise. During the Christmas break, we see many Indian drivers making it happen.
We anticipate freight rates will maintain their upward trajectory in the weeks leading up to Thanksgiving before stabilizing. December may see a slight drop, but rates should remain strong overall. However, weather conditions in the Northwest, known for their unpredictability, will play a significant role. Wet weather could make truck access more challenging, pushing rates higher. A clear 10-day weather forecast for key areas like Snoqualmie, WA, La Grande, OR, and Rawlins, WY, will be crucial for planning.
Despite these fluctuations, rates are still below their pre-pandemic peaks. Rebalancing is progressing slower than the industry hoped, leaving overcapacity issues in play. With interest rates putting pressure on the market and consumer behavior impacted by higher loan rates, there’s an air of caution. The Fed’s monetary policies have kept rates on long-term treasuries high, impacting home loans and, in turn, consumer spending.
Still, it’s Christmas. People will gather, gifts will be exchanged, and celebrations will continue. In the spirit of the season, we at Trinity Logistics, LLC / Longboard Logistics, LLC, wish you moments of joy with friends and family this Thanksgiving. Here’s to living in a country where we can all strive for growth, and to remembering that kindness and a simple smile can brighten any day. Happy Thanksgiving from all of us in Boise, Idaho.
Warmest holiday wishes,
Cain Adams
Trinity Logistics, LLC / Longboard Logistics, LLC
