26 Apr From the Summit – Week of 4/22/19
Summit Expedited’s newsletter featuring current market trends and other exciting news at Summit.
The Start of Produce Season
Every year, produce season utilizes a significant amount of reefer and dry van capacity. This causes capacity to shift into the southeast, spreading through the southern half of the country and then up the west coast. The ripple effect is felt nationwide, as a spike in the number of trucks heading south tightens capacity in the north.
As we approach May, we are seeing rates rise in correlation with produce season. Reefer spot rates from Miami to Chicago were at $1.36 per mile in March, but have jumped to $1.71 per mile in the past seven days. We have seen the same trend in southern California. In March, the spot reefer rates from Los Angeles to Chicago were $1.84 per mile and has now jumped to $2.03 per mile.
If we look back at historical data, spot market reefer rates tend to max out in June where the capacity crunch is at its worse. If we look at 2017 data, the average load-to-truck ratio was 8.57. In 2018 we experienced an even higher capacity crunch with a ratio of 11.32. Although produce will increase rates, overall capacity trends have been favorable in 2019. This should mean more capacity this year compared to the past few years.
Crain’s 2019 Best Places to Work Awards Luncheon
Out of thousands of companies in Chicago, SEL is proud to have received recognition for making Crain’s Top 100 Best Places to Work. We are honored and excited to be selected as a Crain’s Best Places to Work two years in a row (and counting!)
Members of the SEL team gathered at Chicago’s Radisson Blu Aqua Hotel to attend Crain’s 2019 Best Places to Work Awards Luncheon. This year, we doubled the number of teammates able to attend this luncheon – really attesting to Summit’s continuous growth as a company. We would like to thank our employees and our customers for getting us to where we are today, congratulations team!
Diamond Award Winners
Congratulations to Matt Finneke and Rony Morcos for winning AIT’s 2018 Diamond Awards based on their top performance over the course of last year. SEL would like to thank you for the hard work and dedication you devote to the team, your contributions are key to the success of our company. We thank you for all that you do!
Welcome to the team!