The reefer market isn’t cooling down

Peak retail season may be over, but reefer national average spot rates are breaking above $2.91 per mile.

The refrigerated trucking market continues to demonstrate robust strength into January, buoyed in part by the challenges posed by severe winter weather systems like Winter Storm Cora. Spot rate and tender rejection data reveal a sustained demand for temperature-controlled transportation, underscoring the critical role of reefer trucks in maintaining the integrity of perishable goods during harsh climatic conditions.

The impact of severe winter weather on the reefer market is particularly pronounced in regions susceptible to freezing temperatures and heavy snowfall. Cora, forecast to affect a broad swath of the southern United States, from Texas and Oklahoma to Virginia and North Carolina, exemplifies the type of extreme weather events that drive up the demand for reefer trucks. These trucks, equipped with insulated trailers and temperature-control units, are essential for safeguarding perishable goods against freezing, thereby ensuring uninterrupted supply chains.

Geographically, areas such as Yuma, Arizona, known as the “Winter Lettuce Capital of the World,” play a significant role in the reefer market. Truckload volumes in Yuma were 15% higher compared to the same period in 2023, with reefer rates ending 2024 almost 1% higher at an average of $2.40 per mile. High-volume regional lanes like Yuma to Los Angeles are averaging $3.73 per mile, nearly 50 cents per mile higher than last year. These elevated rates reflect the increased demand and the critical nature of refrigerated transport in ensuring the timely delivery of leafy greens consumed nationwide during winter months.

Cora’s approach is expected to exacerbate the demand for reefer trucks in affected regions. The storm’s path covers key agricultural areas, including portions of Texas, Oklahoma, Arkansas, Tennessee

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