Reefer Freight Rates: Historical Average, How to Benchmark, Most Expensive Lanes, How Are They Calculated

adam • January 19, 2023

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Reefer Freight Rates: Historical Average, How to Benchmark, Most Expensive Lanes, How Are They Calculated

To transport perishables or other temperature-controlled freight, you need to use a refrigerated truck, also known as a reefer. Because the equipment for moving reefer freight, which can be transported in full truckload and less-than-truckload vehicles, is more costly to run and maintain, the rates to transport reefer freight are often higher than transporting dry goods. There are also fewer reefer trucks on the road than dry vans during a time when there is greater demand for truckload freight. While many factors determine the reefer freight rate, it is usually based on a cost-per-mile basis. For example, if the trip is going to be 400 miles and the cost per mile is $2.75, the freight charge would be $1,100. The per-mile rates differ for specific areas in the U.S., with rates usually being higher in the Midwest.

Reefer freight rates can affect the price and availability of perishable goods. If the reefer freight rate is high, the cost of the perishable at your local grocery might be higher. It can also result in fewer choices on market shelves because some companies that handle perishable products can be priced out of the market.

This blog explains reefer freight rates (both historically and in the present), reviews how to benchmark current rates, examines what makes some lanes expensive, and discusses the factors that help determine these rates. Ultimately, shippers will understand the complete process and what they need to know to negotiate more effectively with carriers.

Historical Average of Reefer Freight Rates

One thing you can say about reefer freight rates is that they have never been static. Because of so many determining factors, they are always fluctuations. But as of late, they have generally been inching up ever higher. In the three years prior to the COVID-19 pandemic, the reefer freight rate ranged from $1.80 to $2.61 per mile. After a dip down during the first couple of months of the pandemic, the rates have typically been rising over the past two and a half years.

Because many goods that come in reefer trucks or trailers are necessities, companies will still pay to have them shipped regardless of cost. During the first year of the pandemic, people were concerned about the availability of many items and began to stock up in case of emergency. That occasionally left some store shelves empty — and the demand for reefer transport to restock those shelves heightened. While reefer rates have leveled off somewhat, they are still rising in areas where there are still supply chain concerns and capacity is tight.

While we have been going through some extraordinary times over the past three years, the perspective of not only recent times but also looking back further is crucial to have any insight into predicting future rates. Shippers need to accurately forecast demand and rates to sustain cash flow and determine viable shipping costs. Carriers must also be able to predict rates and demand to make intelligent decisions about buying or leasing equipment.

Behind the success of e-commerce, the market is still moving ahead. This means accurately estimating what rates will be like in the days ahead is even more vital. To do that, you need data and the kind of technology that assimilates that data and puts it into perspective. For freight managers to better predict reefer rates, the use of artificial intelligence-guided systems and machine learning processes are crucial in computing past ratios of reefer-to-dry van rates for significant lanes to help look into what the future might hold in store. The volatility of the market will always impact reefer freight rates, but being fully invested accurately predicting them will provide you with an excellent chance to stay ahead of them and keep your costs in line.

Benchmarking reefer freight rates

When trying to benchmark reefer freight rates, there are several things to consider because there can be wide variations in terms. If you want to be in a position to confidently secure the best contract, comparing current rates to the historical average and other market indicators is the first step. Once you have that knowledge in hand, you can then go about navigating the negotiations. You’ll need to shop around. Even though there are fewer reefer options than dry vans, there are still many reefer freight rate offers available. Make sure you also have all the information on your shipment — weight, dimension, distance, lane it will travel, and the deadline for arrival — because that information will help determine what cost the companies can offer you. It might be beneficial and save you some money if you are flexible in your pickup dates, but only if that doesn’t risk the product getting spoiled or damaged.

Most importantly, you must ensure ensure you get a deal that satisfies you. If that is not the case, then further negotiation or a search of the competition for a new candidate would be in order. If the deal is to your satisfaction, you will want to have your product ready at pickup time and correctly packaged and prepared for shipping. Idle time usually results in increased costs, so anything you can do to avoid waiting is greatly beneficial.

What Makes Some Reefer Loads More Expensive?

There are quite a few factors that can contribute to higher costs in reefer freight rates. Let’s take a look at five of them:

Length of journey

How far a shipment needs to be transported is always a major determining factor, but that is even more of a concern in reefer rates. With reefer loads, the product is not only temperature-sensitive but is customarily time-sensitive as well. A greater distance means it will take more time. And when the product has a time window for freshness, the window for that product to get on the shelves is reduced the farther it needs to travel. That means the carrier will usually charge more for the security and speed that it will arrive in time.

Weight

The issue with weight in reefer freight rates is twofold. The more weight there is in the shipment, the more it will cost. But there is also the question of density, which can often add cost to a shipment because of how much space the product takes up in the trailers. Weight and density do not always correlate. For example, a product like Romaine lettuce can weigh less than an avocado but can take up twice the space. If you are shipping Romaine lettuce, that can mean less room for the other products in your shipment. If your products need more space because of density concerns, it will cost more.

Fuel prices

The fuel price is easily one of the most significant cost factors in all shipping. The weight of a shipment impacts fuel costs because more weight means more strain on the truck to pull the load and more fuel being used to draw that truck forward. Fuel prices are also one of the most talked about subjects in shipping because the per-gallon prices have hit new heights in recent years. With fuel prices varying from state to state and region to region, the lane your shipment travels will determine the fuel cost.

Regulations

Produce and other perishable goods are often subject to state, local, and regional regulations that do not impact other products shipped across state lines. Some produce and perishable items may only cross the state lines with 0an inspection certificate. There are other regulations as well. For example, the Food Safety Modernization Act requires monitoring and maintaining temperatures for certain freight. Many reefer units have telematics that let carriers and shippers monitor and control temperatures. With the added equipment comes added cost. Also, regulations on emissions and other pollutants are often changing, and the cost of equipment to maintain those regulations also affects the bottom line.

Produce Season

Without a doubt, one of the major influences on reefer freight rates is the produce season. When fresh produce is ready for picking, it’s ready for shipping — which means it’s time for higher costs. In areas known for agriculture (the Midwest, California’s Central Valley, etc.), fresh produce is gathered in volume, and the demand for reefer shipping goes up, as do the rates in the shipping lanes from those places.

Factors That Determine Reefer Freight Rates

As we have mentioned before, there are quite a few factors that determine freight rates. Let’s go over a quick run-down of what can alter the reefer rates:

Type and volume: Everything from the dimensions to the weight to the density is all figured in when determining reefer freight rates. Also, something like how much refrigeration at a specific temperature a particular product needs can impact costs.
Distance and mode: As mentioned above, distance is one of the top factors in figuring out a reefer rate, but the transportation mode used to move the product can also affect the rate. There are reefer trucks with trailers attached and the more maneuverable refrigerated vans and insulated vans.
Additional services or handling: Make sure the partner you are negotiating with identifies any special add-on services before you complete the deal. In some cases, the refrigeration unit must always remain on because the product can spoil if it gets warm and is then cooled again.

EFS Can Help You Tackle Reefer Freight Rates

When it comes to reefer freight rates, it’s important to know the past and the present. Looking at how the rates have changed historically can help possibly predict the future of those rates. This blog has also looked at how to benchmark current rates, laid out factors that help determine these rates, and presented things you need to be aware of when negotiating these rates. It can be hard to fathom all of the ins and outs of reefer freight rates but don’t worry because Entourage Freight Solutions (EFS) can help you steer through those depths. EFS is an expert in navigating refrigerated freight with a superior team designed to help shippers get freight on the road faster, at a competitive rate, and then trace that movement from its inception through delivery. Check out our numerous ways to ship and request a quote today at our website.

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Tariffs, Trade Policy, and the Great Freight Fallout

By Nick Terry • April 28, 2025

In 2025, trade policy is no longer something that the freight industry can leave on the back burner. Trade policy today is shaping strategy at every level. From tariff escalations and retaliatory duties to sweeping regulatory changes and targeted maritime fees, supply chain leaders are navigating a freight market in which unpredictability is the only constant. Sourcing decisions are shifting, pricing dynamics are unstable, and long-standing operational models are being rewritten in real time. This edition brings together key stories highlighting the growing pressure across logistics channels. Each development points to an industry moving fast, and often reactively, to keep pace with volatile policy decisions. Tariffs Stall US Freight Recovery as Shippers Pause Orders The recent move by the U.S. Trade Representative (USTR) to impose entrance fees on Chinese-built ships calling U.S. ports has only added to the confusion and uncertainty gripping global supply chains and freight operations. Shippers are pausing plans and slashing orders, with truckload volumes, containerized imports, and manufacturing output all showing signs of contraction. Ocean freight spot rates have collapsed: Asia-U.S. West Coast rates have fallen 61% since January to $2,050 per FEU, while East Coast rates have dropped 53.7% to $3,100 per FEU . Blank sailings are rising, with vessels leaving Asia half-empty. Amazon and Five Below are among the major retailers reducing orders from Asia. Container imports jumped 15.3% in 2024, but forecasts now predict a 20-27% decline through the summer. Exporters, particularly agriculture and forestry suppliers, are also squeezed, facing 125% retaliatory tariffs from China. Truckload and intermodal rates remain stagnant, while U.S. factory output fell sharply in March. US Apparel Importers Brace for Long-Term Volume Declines According to Trade Partnership Worldwide, a 124.1% tariff on Chinese clothing and footwear is expected to reduce U.S. apparel imports by 1.6% annually . China still accounts for 41.7% of apparel shipments, leaving limited flexibility for diversion. The American Apparel and Footwear Association (AAFA) is warning of price hikes and mounting infrastructure stress as sourcing pivots toward Vietnam, India, and Indonesia. A looming May 2 deadline for de minimis exemptions could further complicate flows and delay deliveries. Even with a temporary 90-day pause in reciprocal tariffs, the policy uncertainty already affects long-term planning. AAFA CEO Steve Lamar calls the shifting policies “chaotic,” and warned that high tariff pressure will hit both importers and U.S. manufacturers reliant on Chinese components. Port and rail capacity limitations at larger gateways are adding to concerns. Retailers now face rising costs, shrinking margins, and operational delays — all while consumer demand continues to shift rapidly. Freight Pricing Gains Lose Momentum According to the TD Cowen/AFS Freight Index, Q1 truckload rates rose 5.9% above the 2018 baseline, but are expected to decline slightly in Q2. Shippers are responding to tariff threats with aggressive front-loading and shorter-haul routes, driving per-shipment costs to three-year lows. LTL carriers remain focused on profitable lanes and high-quality freight rather than chasing volume. The index forecasts a 0.7% year-over-year increase in LTL rate per pound for Q2 , despite sustained demand softness and macro uncertainty. A key driver behind the softening spot market conditions is a shift to shorter hauls and regionalized distribution, pushing per-shipment costs to their lowest point in more than three years. This trend reflects how retailers and manufacturers are repositioning inventory in response to tariff volatility, as NRF’s Jonathan Gold and DAT analyst Dean Croke noted. Meanwhile, the LTL sector is seeing a 4% rise in fuel surcharges, offsetting lower weights and shorter hauls. With the freight market still under pressure after 26 months of contraction, optimism remains subdued as we enter the midyear period. US Truckload Freight Spot Rates Continue to Fluctuate National benchmark rates have experienced a decline across all categories. As of April 18, dry van decreased by 4 cents to $1.62, reefer by 2 cents to $1.88 , and flatbed by 3 cents to $2.16. This marked the first overall decrease since late January, signaling potential shifts in market dynamics. These changes can be attributed to factors such as tariff uncertainties and tighter capacity, especially affecting the flatbed market. Flatbed rates rely heavily on manufacturing activity in the country, which has been particularly hard-hit by the ongoing trade war with China, and to some extent, with the rest of the world. US Finalizes Tiered Fee Plan Targeting Chinese Ships The U.S. is moving forward with a revised plan to levy voyage-based fees on Chinese-owned and Chinese-built ships calling at American ports. The U.S. Trade Representative (USTR) announced the measure as part of a broader Trump administration effort to counter China’s dominance in shipbuilding and logistics while reigniting domestic ship construction and port infrastructure investment. Starting in six months, Chinese operators will be charged $50 per net ton, with an annual increase of $30 for three years . Non-Chinese carriers using Chinese-built vessels will face lower rates, beginning at $18 per ton or $120 per container, with annual increases. The USTR capped fee applications at five voyages per vessel annually, scaling back its original, more punitive per-port-call proposal after intense industry pushback. The fees are tied to findings from a USTR investigation, which concluded that China’s shipbuilding dominance — producing 29% of global fleet capacity and 70% of all container ships on order — stemmed from unfair trade practices. Exemptions apply to ships arriving empty, those in the Great Lakes or U.S. territories, and some bulk exports. LNG vessel transport restrictions will phase in over 22 years to support U.S. production. China’s largest container carrier, Cosco Shipping Lines, has sharply criticized the USTR’s plan. In a strongly worded statement, Cosco labeled the move as “discriminatory,” and warned it would disrupt global industrial and supply chain stability. Cosco denied allegations from that USTR investigation that claimed China manipulated its shipping and shipbuilding sectors to gain an unfair advantage. The carrier said it upholds “integrity, transparency, and compliance” in global competition and remains committed to ensuring the resilience of international trade. Walmart Investing $6B in Mexico, Central America Store Expansion Walmart of Mexico and Central America will invest $6 billion to open new stores across the region , reinforcing its long-term commitment to growth in Latin America. The expansion will include Bodega Aurrera, Walmart Supercenters, Sam’s Club, and Walmart Express formats, building on a robust network of 3,200 stores across all 32 Mexican states. This latest move echoes Walmart’s earlier $1.3 billion investment in 2016 for regional distribution and operational upgrades. The retailer entered the Mexican market in 1991 with a Sam’s Club in Mexico City. In a statement, Walmart said the new expansion reflects confidence in the region’s economic potential and consumer demand. Globally, Walmart continues to invest aggressively in infrastructure and store development. The company has pledged about $4.5 billion for its Canadian operations and $1.3 billion in Chile to build 70 new stores and a distribution center. In the U.S., Walmart is executing a five-year plan to build or convert more than 150 stores while modernizing 650 existing locations under its “Store of the Future” initiative. Experience Seamless Shipping with Entourage Freight Solutions Entourage Freight Solutions believes in total transparency in the shipping process. That is why we invest in tech solutions that track every shipment extensively, monitor every driver, and extract every bit of efficiency without sacrificing quality. Our state-of-the-art platform utilizes cloud-based GPS tracking to keep you informed, reroutes shipments on the fly to avoid delays, and even responds to real-time market changes to ensure you receive your shipment on time and as soon as possible. Our Services Full Truck Load (FTL): When you need a truck all to yourself. Less-Than-Truckload (LTL): Efficient solutions for multi-stop shipments or combining smaller loads to save on costs. Refrigerated Trucking: Keeping your temperature-sensitive products fresh and safe. Cross-Docking: Strategically located facilities in Shelby, Ohio, Cedar Rapids, Iowa, and Romulus, Michigan, for streamlined consolidation, storage, and distribution. Ready to experience a new level of service and control in your freight shipping? Request a quote today to see how Entourage Freight Solutions can help with your freight movement and other supply chain needs.