Produce Transportation Faces Higher Costs, Tighter Capacity and Border Challenges

Driver shortages, rising fuel prices, tariffs and regulatory pressures are reshaping produce logistics.

Tariffs, immigration actions, regulations and, of course, elevated fuel prices are complicating the produce sector’s logistics. The produce transportation market isn’t in disarray, but it is subject to pressures that affect availability and rates.

As summer began, Fred Plotsky of Cool Runnings, Kenosha, WI, suggested the produce transportation market was uneven. “Some markets are, I would say, completely out of line.”

Driver shortages and reluctance to travel close to the Mexican border factor into rates. Years of inconsistent enforcement of visa and licensing requirements have put some operators in a gray area, with the result that they are refusing to go near areas where they might be subject to immigration actions.

Even for operators concerned just about other parts of the United States, rules on language fluency are keeping some experienced drivers off the road.

“Transportation is available today, but it’s not quite as frictionless as it was a few years ago,” says Jose Rossignoli, president of Robinson Fresh, Eden Prairie, MN. “As one of the world’s largest produce suppliers, we’re seeing that refrigerated freight capacity is significantly tighter than the broader truckload market due to a variety of factors, including fewer drivers and higher costs for fuel and equipment. This is particularly true in key produce-growing regions.”

STEADY DEMAND

In the market as it exists today, making and updating plans requires greater attention.

“Pricing has stabilized since the sharp increase we experienced in the first six months of this year, driven by low supply of capacity, legislation and fuel costs,” says Rossignoli. “As a result, food companies are engaging with their suppliers and logistics providers to reduce costs. We are advising our customers to plan earlier and secure capacity sooner than in prior years.”

He also recommends produce shippers keep a closer eye on route guide compliance. “Are contracted carriers accepting the loads they committed to haul? Freight that moves to the spot market will cost 10 to 15% more.”

St. Louis, MO-based Lange Logistics has transportation capacity available, even if it’s becoming more challenging to source, says Ryan McCool, manager of sales, Chicago.

“Rates continue to trend upward, particularly when team drivers are required,” he says. “Many of the carriers we work with have trucks sitting idle, as drivers have either been taken off the road, moved to higher-paying opportunities or exited the market altogether.”

“Many of the carriers we work with have trucks sitting idle as drivers have either been taken off the road, moved to higher-paying opportunities or exited the market altogether.”

— Ryan McCool, Lange Logistics, St. Louis, MO

Looking ahead to the second half of the year, McCool expects continued rate pressure driven by fuel costs and the ongoing driver shortage. “While we haven’t seen a significant increase in capacity, holiday demand could create additional upward pressure on rates.”

In the course of the year, Lange has seen “an uptick in demand, although that’s typical during periods of higher rate volatility. Overall, we believe transportation demand has remained relatively steady year over year,” says McCool.

Scott Ginn, vice president of operations, Transervice Logistics, Lake Success, NY, says the produce transportation market is operating “adequately,” however, “capacity is tight, rather than abundant.”

“Most planned loads can still be covered with two to three days’ notice, while short-notice, long-haul and multi-stop shipments face higher costs and greater service risk.”

Ginn says the imbalance is being driven by limited refrigerated equipment, carrier exits, driver and operating-cost pressures, and trucks being concentrated in major harvest regions.

“As a result, there is too little spare capacity in several key markets, especially California, South Texas, Georgia and the Pacific Northwest,” he says. “Reefer spot rates have eased slightly from their early July seasonal peak, but they remain well above year-ago levels, and higher diesel costs are limiting the savings.”

TIGHT CAPACITY IS REGIONAL

John Ryan, Boston office general manager for Allen Lund Co., La Cañada Flintridge, CA, says capacity is available in most areas, but at an elevated cost versus previous years.

“When demand spikes in seasonal growing areas, such as the Mid-Atlantic and Northeast, it puts a strain on already limited capacity,” he says. “Based on our numbers, rates from California to Boston have dropped 12% since the Fourth of July push, but they remain 40% up over last July.”

Ryan expects the decrease to be short-lived, and rates to increase as demand increases in the fall and into the beginning of 2027.

Less capacity makes it tougher to meet demand, which has been consistent with recent years.

“Overall, there is not enough capacity to meet seasonal demand that normally shifts regionally,” Ryan says. “We have always seen spikes in demand, but with capacity being down, it magnifies the situation.”

Jim Anderson, division vice president, Lily Transportation, Needham, MA, says that, as midsummer approached, produce transportation had been operating “at an adequate level per the USDA Specialty Crops National Truck Rate Report, with rates falling slightly in the past month as truck availability stabilized to more of an adequate level.”

As the growing year progresses, Anderson expects to see more demand, “which may cause the truck availability to struggle to keep up.”

He says this will create a more competitive environment and cause truck rates to increase, as suppliers are trying to move produce with shorter shelf life faster. “Year over year, the truck rates have increased substantially due to the rising costs of fuel, economic uncertainty, and driver shortages that are plaguing the entire industry.”

“Year over year, the truck rates have increased substantially due to the rising costs of fuel, economic uncertainty, and driver shortages that are plaguing the entire industry.”

— Jim Anderson, Lily Transportation, Needham, MA

In looking at the year as a whole, McCool says Lange Logistics has experienced fairly consistent demand.

“Periods of rate volatility have led to an increase in tender rejections, creating additional spot freight opportunities for brokers and smaller carriers, which is where we’ve seen an uptick in volume,” he says. “Looking ahead to the holiday season, if demand increases as expected, we anticipate transportation costs will rise as available truck capacity works to keep pace with increased demand.”

When compared to mid-2025, Transervice Logistics’ Ginn says demand was essentially flat.

“The comparable 2025 total was 48,976 units, so current movement was only about 0.1% higher year over year,” he says.

Allen Lund’s Ryan anticipates rates to stay flat through the beginning of the fall, “but increase significantly through the beginning of 2027 due to typical holiday demand and religious holidays.”

Recently, Ryan notes, produce demand has been fairly flat, “with the exception of strawberries coming on line early. This early arrival pulled demand forward, as buyers started making purchases sooner than usual.”

Lily’s Anderson advises that it’s normal for produce transportation demand to rise in the summer, as California’s growing season peaks largely because of the length of hauls associated with it, and this year is no exception.

“I’m expecting the demand to continually increase throughout the rest of the year.”

Robinson Fresh’s Rossignoli says he’s seen tighter conditions in refrigerated transportation than in the overall truckload market this year, but demand for transportation in the produce sector has been relatively steady.

“We’re seeing a shortage of transportation capacity across the board, due to fewer drivers and less equipment.

“Produce is not like other freight because it’s seasonal and perishable. When crops are ready, they must move. For that reason, in a market that’s already constrained, even modest shifts in local volumes can create outsized regional impacts.”

— Jose Rossignoli, Robinson Fresh, Eden Prairie, MN

“But produce is not like other freight because it’s seasonal and perishable. When crops are ready, they must move. For that reason, in a market that’s already constrained, even modest shifts in local volumes can create outsized regional impacts.”

BORDER-CROSSING ISSUES

Border-crossing issues associated with tariffs aren’t significantly affecting all transportation providers, but difficulties exist due to levies and other considerations.

“On the cross-border side, tariffs, trade policy discussions and customs processes continue to create uncertainty,” says Rossignoli. “Ongoing discussions about the U.S.-Mexico-Canada Agreement (USMCA), as well as continuing issues with Canada’s year-old digital customs platform, continue to present challenges, especially for produce supply chains that depend on speed and predictability at border crossings.”

He says at the southern border, Mexico remains a critical source of fresh produce for U.S. consumers, making efficient border crossings essential.

“Even relatively minor delays can affect freshness and product value. For produce shippers, the best response is flexibility. This means having strong cross-border expertise, multiple routing options, and the ability to adapt quickly when conditions change.”

Transervice Logistics’ Ginn notes the USMCA remains in force, but the U.S. has declined to renew it as constituted previously. He says the new 50% tariffs on selected Canadian products, which were scheduled to start Aug. 19, apply to covered goods even when they otherwise qualify under USMCA.

“They are not described as a blanket fresh-fruit-and-vegetable tariff, but they can still disturb cross-border trailer balance, reduce backhaul opportunities and increase customs scrutiny.”

For Mexico, the immediate concern is continued negotiation and product-specific duties rather than a new blanket produce tariff, Ginn adds. “For example, most Mexican fresh tomatoes remain subject to a 17.09% antidumping duty. U.S./Mexico talks beginning July 21 include agriculture and customs procedures.”

Macroeconomic factors haven’t pressured transportation demand overall, Anderson says, “but we are seeing vendors and retailers moving more toward dedicated transportation systems instead of relying solely on load boards and brokers. This shift with retailers and vendors is allowing for a more stable price structure with more affordable final pricing for the end customer.

“With no sign in reduction of market spot rates, I would anticipate the migration to dedicated carriage will continue through year’s end.”

TECHNOLOGY IMPACTS

Although important, technology has to be balanced by maintaining a high level of customer service, Lange’s McCool says, which requires the human touch. At the same time, it can help companies deal with some issues.

“Technology, particularly AI, is helping companies optimize workflows across areas, such as track and trace, capacity sourcing and data entry,” he says. “At Lange Logistics, our goal is to implement AI where it helps optimize workflows while preserving the direct relationships we’ve developed. Highway, along with several other tools, is helping companies vet carriers and identify bad actors.”

Technology has been improving produce transportation by boosting visibility, control and speed of decision-making, says Ginn. “While technology cannot eliminate driver or trailer shortages, it helps carriers and shippers use available capacity more efficiently and respond faster to changing volumes, fuel costs and market disruptions.”

Allen Lund’s Ryan says technology is constantly changing and improving the industry. “There is a lot more information readily available, which helps reduce spoilage, boost transparency, and speed up deliveries. Technology is shifting our industry from reactive to proactive.”