Out of Stock: 5 Conspicuous SONAR Charts

This week’s CPG news item reflects the continuation of recent food / beverage trends.

Soft drink and alcoholic drink crossover: Monster Beverage is the latest soft beverage company to enter the adult beverage market by acquiring the owner of the craft brewery, CANarchy Craft Brewery Collective, for a $ 330 million transaction. Other recent examples of category crossovers include the Coca-Cola-owned Topo Chico brand (currently offering both alcoholic and non-alcoholic varieties) and Hard Mountain Dew (a collaboration between Pepsi and the Boston Beer Company). ..

Soaring food prices: Butter prices are up about 40% year-on-year due to delayed milk production, labor shortages and rising packaging costs. That increase is even worse than meat inflation, which is the category that has hit the consumer wallet the most on a dollar basis (Tyson raised meat prices by 11% -39% depending on the segment). is.

Additional package constraints: According to Constellation Brands, the lack of brown glass is damaging the amount of imported beer. Despite the shift in market share from bottled beer to canned beer and generally from beer to liquor, selzer and canned cocktails, there is a shortage of bottles. During the pandemic, beer makers often struggled to procure aluminum cans and had to resort to the unusual practice of importing cans.

Also, as a continuation of recent trends, SONAR freight data shows that the freight market remains tight. Here are the 5 SONAR chart mini highlight reels.

The track load spot rate has hit a new high. Dry van (blue) and reefer (green) spot rates (including fuel surcharges) average $ 3.83 / mile and $ 4.88 / mile, respectively. These charges are likely to decline in the coming weeks as more capacity returns to the market after vacation, but in general, on-demand capacity charges continue to rise and the tightness of the truck loading sector is tight. it is continuing.

Refrigerated containers are rejecting 39% of bids. It’s not “coin toss compliance” last spring, but the current freezing bid rejection rate is particularly noticeable after the rise in contract rates over the past year. Refrigerated container contract rates are currently up by double digits compared to last year (purple line on the left axis below). You might have expected carriers to become significantly more compliant after the contract was renegotiated at a higher rate.

Ocean velocities are stable at very high levels. At the end of last year, rates in the eastward trans-Pacific region tripled from late 2020 and then fell about 25% from their September highs. Recent rises have dropped about 15% off September’s highs, suggesting that the ocean market is unlikely to fall soon. correct. If the congestion at the port is eased, the resulting increase in ship productivity will effectively increase capacity and lower tariffs, Ship congestion just got worse earlier this year..

Imports should continue to drive demand for domestic freight and warehouse space. SONAR’s marine import shipments (including both containerized and non-containerized quantities) are significantly higher than last year’s levels at almost all major US ports.

Intermodal contract rates (excluding fuel) increased 14% year-on-year in the fourth quarter of 2009. Last year, while contract rates rose by double digits, it was frustrating for domestic intermodal carriers, who were delayed due to terminal congestion and lack of equipment. With the annual price revision of domestic intermodal contracts in 2022, shippers may see double-digit growth again in addition to last year’s rise.

Check out the latest for other SONAR highlights SONAR highlight reel..

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