National average gas prices have crossed $4 per gallon and diesel has moved above $5 per gallon after weeks of relative relief. The move reverses a modest stretch of lower fuel costs that had provided some easing on produce transportation expenses.
Fuel is a direct input cost for fresh produce logistics, and diesel prices in particular drive refrigerated trucking rates. With reefer spot rates already running above last year's levels, a sustained move higher in diesel adds further pressure to a transportation cost environment that was already challenging for shippers and buyers alike.
Watch for upward movement in spot reefer rates in the coming weeks if diesel stays elevated. Buyers and category managers negotiating freight should factor the current fuel environment into cost conversations, particularly for longer hauls from California, Florida, and Mexico.