Posts Tagged “Del Monte”

The Appeal of Electric Trucks; Acquisition of Mann is Completed by Del Monte

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A34The appeal of big rig electric trucks may be even bigger than thought….Plus, Del Monte completes its acquisition of Mann Packing.

Electric Trucks

Testla Inc. is the maker of the long-distance class-8 electric trucks scheduled to be introduced in 2019.  Now some fans of the new truck believe they will pay off the difference between electric and diesel trucks in as little as 18 months.  Jim Monkmeyer, president of DHL Supply Chain, who is one of the first to order the electric trucks, recent told Reuters the new trucks could pay for themselves this fast because of energy usage and low maintenance costs.  Engines for electric trucks are said to be much simpler in relation to the number of parts and complexities of the parts.

Additionally, based on the assumption diesel fuel costs will remain high, plus costs are projected to decrease for electric trucks, the saving could be even more than originally anticipated. anticipated.

Sysco Corp. of Houston already contracted to by 50 tractor-trailers,  while Meijer Inc. of Grand Rapids, MI is set up for an electric truck test drive.

Del Monte/Mann Acquisition

 Fresh Del Monte Produce of Coral Gables, FL  has finalized its acquisition of Mann Packing Co. Inc. of Salinas, CA for about $361 million.

Del Monte has been for years associated primarily with bananas, but more recently has been diversifying its business.  Purchasing Mann accelerates its efforts to become more invested in fresh-cut.  Its sales in the segment for 2017 were $607.8 million, up 18 percent from the previous year.

Mann’s product offering is roughly 50-50 between bulk vegetables and fresh-cut.   Del Monte recently spelled out some of its plans to incorporate Mann into its operations.  It was noted Mann is mainly on the West Coast with much less of a presence in the Northeast, but has little activity in the Southeast and Southwest of the U.S.  Thus, Del Monte is looking to develop new business in those regions.  It also is looking leverage its infrastructure across the U.S. to improve marketing and distribution of Mann Packing products.

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Del Monte is Adding Container Shipping Vessels at Port Manatee in March

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Manatee1Starting this month produce shipping company Del Monte will add container shipping vessels to its Port Manatee itinerary, it was announced recently by the port.

Arrivals of Del Monte container vessels will be  “periodically in a controlled growth,” according to the port.

While Del Monte isn’t completely switching to containerized cargo, the company will use container vessels at Port Manatee about every three weeks. Container vessels can hold 350 containers, compared to 96 containers on a breakbulk ship, according to the port.

Breakbulk differs from containerized cargo because loose materials or products are loaded, shipped and unloaded individually. When it comes to container shipping, storage units are used to encase the cargo.

At a recent Manatee County Port Authority meeting, it was revealed the port is considering updating Port Manatee’s crane technology with the increase of containerized cargo.

The Port Authority also approved a recorded easement and installation agreement with Florida Power and Light to install a transformer in the port’s container yard. The transformer will power 124 new refrigerated plugs that are necessary for cold containerized cargo storage.

While the port does seek to boost its container volume in the upcoming year, Port Manatee doesn’t plan to stop accepting breakbulk shipments.

Port officials have expressed the need for the capability to handle both breakbulk and container.  While Port Manatee can handle breakbulk, most ports in Florida are not ready to handle breakbulk for fruits and vegetables. Containerization allows the port to reach further because now you don’t have to break the cold chain.

About Port Manatee

Port Manatee is the closest U.S. deep water seaport to the Panama Canal, serving bulk, break bulk, container, heavy lift, project and general cargo customers. The port generates more than $2.3 billion in annual economic impact for the local community, while supporting more than 24,000 jobs, without the benefit of ad-valorem taxes.

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Del Monte is Staying at Port Manatee

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ManateePALMETTO, FL — Port Manatee will have Del Monte fruit as a tenant for up to 20 more years.

Del Monte Fresh Produce NA Inc., , has signed a lease extension through Aug. 30, 2021 with Florida’s Port Manatee.

The company has imported fruit through the port since 1989. Under the agreement Del Monte has options for three additional five-year extensions.  If all options are exercised, Del Monte will be doing business at Port Manatee until at least 2036.

The lease agreement will continue to pay the port $108,000 a year.

“Extension of Port Manatee’s long-term partnership with Del Monte demonstrates the mutual commitment on the part of our port and a most-valued tenant,” said Betsy Benac, chairwoman of the Manatee County Port Authority, which OK’d the lease extension recently.

“We are very pleased to continue our relationship with Port Manatee,” said Brian Giuliani, Del Monte’s Port Manatee-based port manager. “The cooperation with Port Manatee is exceptional and has been vital to the growth of our business at Port Manatee.”

Since 1989, Del Monte, based in Coral Gables, FL, has moved 8.7 million short tons* of cargo through the port, and the company’s distribution center there has become the company’s second-largest U.S. facility.

One of the North America’s largest marketers and distributors of fresh produce and the world’s No. 1 marketer of fresh pineapple, Del Monte uses refrigerated ships to import bananas and pineapples from Central America weekly.

Export cargo on the Del Monte ships includes liner board that is used for packaging, as well as various third-party containers and project cargo.

Del Monte is one of the world’s leading producers, marketers and distributors of high-quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared fruit and vegetables, juices, beverages and healthy snacks in Europe, Africa, the Middle East, and the countries formerly part of the Soviet Union.

*The short ton is a unit of weight equal to 2,000 pounds (907.18474 kg), that is most commonly used in the United States where it is known simply as the ton.

 

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Veteran Trucker Tackles First Produce Load

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Jerry Cravens has been trucking since 1991 and as an owner operator since 2002.  After all these years, he is fueling at an Atlanta truckstop before picking up his first load of produce.

Leased to A.L. Smith Trucking of Versailles, OH, Jerry is picking up a load of tomatoes from a Del Monte warehouse in Atlanta for delivery to another Del Monte facility in Winset, NC.  At the Winset warehouse, he’ll load more fresh produce and head to Del Monte’s operation in Columbus, OH.

The closest Jerry has come to hauling produce was about 20 years ago with a load of cheese.  Since then his focus has been with dry freight.

As Jerry was preparing to pull out of the truck stop and head to the Del Monte warehouse, this writer forgot to get his contact information.  It would be very interesting to see if his first produce load would be his last.  Or just maybe he found a new challenge after all these years that he really likes!

Jerry fully realizes hauling perishables “is definately more challenging than pulling a dry van.”  He decided to haul produce on the recommendation of a friend who had “made good money” over the past year leasing with A.L. Smith.

Jerry says his career as an owner operator has succeeded  by being careful whom he hauls for and taking the most profitable loads.

Over the years he has considered obtaining his own operating authority, but he has known too many truckers who have tried it and failed.

Prior to trucking Jerry graduated from high school, then enlisted in the U.S. Navy  for four years, before transferring to the U.S. Army for another six years.

Between the experience in the military and his time hauling dry freight, he seems confident he is prepared to enter the world of produce trucking.  Jerry is aware of the “weird hours” and delays often associated with loading and unloading fresh fruits and vegetables, plus plenty of other issues at the docks.  He has been briefed on important factors such as maintaining the correct temperature for his load of tomatoes he’ll transport in a 53-foot Utility trailer equipped with a Carrier refrigeration unit.  The trailer is owned by the company to whom he is leased.

As Jerry was finishing fueling his truck, he was asked if he had any advice for anyone looking to enter trucking and wanted their own truck.  He advised they first learn the industry as a company driver.

As for buying a tractor, he advised against purchasing a new one.  He cited the high monthly payments as a primary negative with a new truck, along with the higher down payment required.  Jerry also cited other factors such as lease-purchase plans “where you will end up paying too much.  Buy a new truck and it is hard to come up with those $1800 per month truck payments.”

Jerry  practices what he preaches.  He owns a 2001 Kenworth T-600 with a 250-inch wheel base and a 13 speed transmission.  His truck payments are $500 per month.

“If you own your own truck you  always have a way home,” he surmises.  “I’ve seen too many of these company drivers fired while on the road and have had to find their own way home.”

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