Reefer Market Slows Down This Spring

freightsitemap
Jul 30
2 min read

As the spring season progresses, the refrigerated (reefer) truckload market has settled into a more stable pattern, mirroring broader truckload trends rather than leading them. The sharp fluctuations seen in late 2023 and early 2024 have given way to relatively consistent activity between March and early April.

Key Highlights

Looser Capacity, Lower RejectionThe Reefer Outbound Tender Reject Index (ROTRI) has hovered below 5% since March, after previously climbing above 8% through much of Q4 and early 2024.
Spot Rates Reflect RelaxationReefer spot rates, tracked by the Reefer Truckload Index (RTI), have similarly softened suggesting easing tension in refrigerated freight lanes.

Chart of the Week: Reefer Tender Reject Index, Reefer Truckload Index – USA SONAR: ROTRI.USA, RTI.USA — **Chart of the Week:** Reefer Tender Reject Index, Reefer Truckload Index – USA SONAR: ROTRI.USA, RTI.USA

What’s Driving the Shift?

Several seasonal and regional factors have contributed to the decline in reefer tightness:

Harvest Season Normalizes While unpredictably timed crop runs such as out of California's Central Valley can create sudden rate spikes, the spring window this year saw a more subdued recovery, keeping volatility in check .
Winter Freeze Demands Fade Extreme cold in the Midwest during January pushed reefer demand and rejection rates higher, especially on routes like Chicago to Dallas. As temperatures warmed, that spike gradually reversed

Regional Rebound

In the Pacific Northwest, tender rejection rates soared past 30% in September 2023, linked to the rush of produce freight like apples, potatoes, and hops. Those highs have since eased as seasonal demands stabilized.
Midwest rates also cooled as weather improved, and by late March, before new disruptions, the reefer market appeared to be settling into a more sustainable rhythm.

What This Means for Shippers & Carriers

With more trucks than loads, capacity remains plentiful, keeping rates and tender declines in check.
Even amidst softer spring volumes, produce season may still act as a bellwether delayed or compressed harvests could reignite market tension, especially if capacity conditions tighten again.

Bottom Line

Spring 2024’s reefer market feels less erratic than previous years, returning to levels of availability and pricing more consistent with broader truckload conditions. While volatility is down, this calm may only be temporary as harvest seasons mature and capacity shifts. Keep an eye on heat maps and SONAR indices they remain critical indicators for rapidly changing reefer dynamics.