One in Five Reefer Loads Rejected as Harvest Tightens Capacity

Refrigerated truckload tender rejections hit 21.44% nationally as of Oct. 20, meaning roughly one in five reefer loads gets turned down by carriers, according to FreightWaves SONAR data. The reading sits just off the year-to-date peak of 22.13% reached Sept. 17, after a brief dip to 20.89% on Sept. 24. Capacity in the temperature-controlled segment is tight, even as broader freight demand softens.

The dry van market tells a similar story on the capacity side. The SONAR Truckload Rejection Index (STRI) has hovered between 13% and 14% since August and stood at 13.9% on Oct. 20. The SONAR Truckload Volume Index (STVI) slipped about 2% week over week to roughly 11,000.

That's the squeeze: volumes are falling, yet shippers aren't getting rate relief.

Where is reefer capacity tightest?

Geography drives the elevated rejections. SONAR's tender rejection maps show the tightest conditions concentrated in the Pacific Northwest and parts of the Midwest, regions where refrigerated volumes have also climbed.

Julie Van de Kamp attributed the pressure to fall harvest commodities and early protein demand ahead of Thanksgiving.

"I think that's primarily being driven by harvest for fall — think apples, potatoes, onions in the PNW, things being harvested and stored there, as well as protein meat products in the Midwest like poultry, early Thanksgiving, getting ready for that and those sorts of refrigerated commodities shipping out of there," Van de Kamp said.

Protein shipments are moving out of South Dakota, Iowa and neighboring states, stacking demand onto a fleet already stretched by produce moves.

What are rates doing?

Reefer has outpaced the broader truckload market in 2024. Refrigerated spot rates are up approximately 28% year-to-date, while reefer contract rates have risen about 9%, according to SONAR data Van de Kamp cited.

Diesel compounds the problem. Reefer units must keep trailers running continuously, and that cost burden doesn't ease when the trailer sits empty or parked. Every uptick in fuel prices hits refrigerated economics harder than van.

Will winter bring relief?

Not likely. Van de Kamp flagged winter as a factor that could sustain or push rates higher, because reefer equipment does double duty: it cools cargo in warm months and protects temperature-sensitive freight from freezing once ambient temperatures drop below 32 degrees. That demand extends well into the first quarter.

"I expect to see refrigerated rates continue to rise even more than van rates," she said.

One bright spot for shippers is Southern California, where tender rejections remain below the national average but have been tightening — a pattern that typically precedes peak-season freight activity, Van de Kamp noted.

Her summary of the Oct. 20 snapshot: freight volumes slipped, but carriers have kept the leverage to be selective about which loads they accept, holding rejection rates firm across modes. With harvest volumes still moving and freeze-protection demand queued for winter, reefer shippers should expect tight capacity and upward rate pressure into the first quarter.