The western United States is experiencing truck shortages affecting the potato and onion markets, as the trucking industry undergoes a process of rightsizing capacity due to decreased demand. This adjustment comes amid ongoing concerns of overcapacity within the sector. According to DAT Principal Analyst Dean Croke, the industry has seen a reduction of approximately 7,000 carrier authorities each month throughout the current year. Additionally, similar reefer truck shortages have sporadically affected other regions, including Florida and the Chicago area, in 2024. These occurrences, while challenging, contribute to driving demand and elevating rates.
Despite these conditions, the USDA has not defined the term "shortage" as of yet. Meanwhile, the trucking industry is witnessing some positive developments, such as rate improvements and signs of market tightening, offering a glimmer of hope to carriers facing reduced profits or losses. Nick Shanley, president and owner of RST Inc. based in Caldwell, Idaho, noted that his business, which primarily operates on contract rates, has not observed significant rate increases, even amidst discussions of market recovery.
Source: AgricultureDive