• Market Update – May 10, 2011
  • Summer is almost here, and it is that time of year again to look forward to all the joys that summer brings, starting with produce, even higher fuel costs, and capacity shortages! If history repeats itself, as it has most of the past 20 years, we will see a rise in costs over the next several months, due to the increased demand for equipment and the decreased amount of availability.

    What causes this trend each year? A large percentage of refrigerated trucks run dry during the colder months therefore creating a larger surplus of truck availability in many regions. During the summer months all of the refrigerated trucks are being used for produce and items that require temperature protection from the heat. The fact that this type of equipment is no longer available greatly reduces the quantity of trucks available to handle dry commodities. Whenever a “supply and demand” imbalance creates scarcity of a commodity, and in this instance it is trucks, then costs for the scare resource will rise.

    How does TMI Sales help protect our clients from some of these hikes? We work to build carrier partnerships throughout the year, and utilize dry vans all year round, to ensure we are always able to provide equipment to our clients, even in tough regions. The key strategy for the manageability and/or stability of costs during these critical seasons (produce season, Christmas tree season, snow season and other seasons that dictate the supply and demand for equipment) is planning. TMI Sales works with our clients and carriers to pre-plan shipping schedules, to help you especially avoid any last minute needs for equipment, which during the peak season generally results in very high costs, or even a complete lack of availability.

    The produce season typically lasts from May thru September, generally showing signs of relief just after labor day weekend and fiscal year end.

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