Posts Tagged “Texas”

It is Supply and Demand for Trucks and Produce

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Refrigerated equipment is in tight supply in a number of areas around the country, but it could be much worse.   Less than bumper sized crops in several areas is easing some of the pressure for trucks.   California’s San Joaquin Valley stone fruit crop is down from a year ago.  Central and southern Georgia fruits and vegetables were hit hard by inclement weather during the spring.  Watermelons in Texas and some parts of the east coast were also victims of bad weather.

The new apple season will be launched in only a few weeks and crops were decimated in Michigan, Ontario and parts of New York state.

Thus, when folks complain about California rates hitting $6,000 to the Mid-west and $9,000 to the East Coast, with a little more favorable weather conditions in various parts of the USA and Canada, demand for refrigerated equipment could have been worse – resulting in even higher rates on produce hauls.  Still, there comes a point when rates reach a certain point, that retail prices for fruits and vegetables rise, and at a certain there is consumer resistance to high the costs.

Whether talking availablity of equipment, volume of fruits and vegetables, as well as the quality of the product — and let’s not forget the availability of professional drivers – many factors can result in the final equasion for supply and demand….If and when this economy ever turns around, produce shipments will be receiving a lot more competition as many drivers will choose to haul other things, which is not as demanding and risky as loads of fresh produce.

Southern Californa citrus and fruit – grossing about $9000 to Boston, sometimes more.

Salinas Valley vegetables and berries – about $6200 to Chicago.

 

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Trucks Tightening as Demand for Produce Loads Build

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California rates to the East Coast topped $9000 this week, at least from the Salinas Valley, where vegetable volume is really cranking up, plus there is building volume with the nearby Watsonville district strawberries and other berries.  Rates also have increased from other regions of California, ranging from the San Joaquin Valley, to Santa Maria and in the Southern part of the state.  Truck supplies have definately tightened up, but so far, my sources are reporting you can get a truck, if you’re willing to pay for it.

In Arizona, rates remain strong as Mexican melons and table grapes are moving in good volume across the border into the USA.

If for some reason, you are stuck in New Mexico, the new crop of storage onions from the Southern part of the state are now being shipped.  Rates are usually less on onions with a significant factor being you can haul them on flatbeds and other non-refrigerated equipment.

Texas remains active for produce loads, in large part thanks to Mexico.  There are a variety of  Mexican vegetables and tropical fruit crossing into South Texas.  The Lower Rio Grande Valley is shipping watermelons, although weather troubles has reduced loading opportunities there.  The Winter Garden District, just south of San Antonio is loading onions.

Salinas Valley vegetables, Watsonville berries – grossing about $9000 and more to Boston.

San Joaquin Valley stone fruit – about $4000 to Atlanta.

Nogales melons and grapes – about $5000 to Chicago.

New Mexico onions – $3000 to Chicago.

Texas produce – $3000 to Atlanta.

 

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Produce Rates Skyrocket from California

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I arrived in Chicago yesterday (June 4)  and the talk both with people in trucking and in the produce industry was the rates had shot up $1,000 on loads from California to Chicago.  There sure was a lot of complaining from produce companies, but big smiles on the folks in transportation.  It should come as no surprise to anyone.  It happens around June 1st every year as produce spring shipments increase and refrigerated equipment comes into short supply, although trucks seemed to be available, if you were willing the pay the price.

The down side to the rising produce rates, is, as every year, the westbound dry freight rate are awful.  Dry freight from Chicago and the Midwest is grossing only $2400 to $2500 to the West Coast — and some of it is even cheaper.  That may pay for the number 2 diesel, but it’s not going to cover the cost of the driver, or the truck.

Another downside is be wary of  companies with which you may not be familiar.  Some receivers will look for any little thing to make a deduction from your load.  I’m talking about things as petty, for example, as the product in your trailer being one degree off the recommended pulp temperture.  That $1000 extra you thought you were making with the rising rates, isn’t going to look near as good when you are paid, if you face a deduction of $200, $300, $400 or more.

As of today, here’s what some loads are paying coming into Chicago.

From California to Chicago:

6 pick ups, five drops, grossing $7,000

5 pick ups, one drop, grossing $6400 (Think I’d take the next load instead, see the next one listed!)

Fresno, 1 pick up, 1 drop $6400

Nogales melons and grapes – $5000 to Chicago

West Texas (90 miles north of Laredo), potatoes – $2400 to $2500 to Chicago.

By Bill Martin

Special thanks to Eclipse Dist., Elburn, IL for the rate information.

Central Florida potatoes – $3000 to Chicago.

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Let the Good (Rates) Times Roll!

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Supplies of refrigerated equipment from shipping areas c0ast-to-coast  continue to tighten as seasonal fresh fruit and vegetable volume rises.  The result is buyers of produce are being forced to pay higher freight rates and truckers now have the upper hand in rate negotiations.

Truck supplies are especially short in California, Nogales, South Texas and in Florida.

The truck supply situation will continue, and worsen, after Memorial Day as receivers replenish supplies.

California hasn’t even got cranked up yet with produce shipments, although they are certainly getting there.  If you are a produce hauler, let the good times roll.

The week of May 21st there were already a few loads out Southern California, Santa Maria, as well as the Salinas and San Joaquin valleys topping $8000 to places like New York and Boston.

In Arizona, rates for Mexican grapes crossing the border at Nogales, increased the past week by double digits.  The most extreme example was a 30-plus percent hike in rates to Dallas.

Speaking of Texas, strong demand for reefer loads out of the Lower Rio Grande Valley continues.  There’s a lot of watermelons and other Mexican fruits and veggies coming into the USA.

In Florida, rates have been all over the board — especially for hauling red potatoes.  If you hit it right when truck supplies are really short, you could gross $2000 MORE on a load to the Northeast.  Most of the state’s watermelon shipments are coming from areas north of Orlando, with shipments now coming from Georgia.

Salinas Valley vegetables- grossing  about $8200 to Boston with some loads  higher.

Mexican grapes from Nogales – about $3400 to Dallas.

South Texas produce – about $5500 to Boston.

Florida potatoes – anywhere from $3000 to $5000 to New York.

 

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Central USA Produce Loading Opportunities

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We’re not talking huge volumes of loads involving fresh produce in the Midwest, or Central USA, but there are quite a few areas shipping this time of the year.  Even a partial load may allow you to get to another destination to fill out the trailer, or deliver and get a full haul.

Texas –  There are 350 to 400 truckloads of Mexican avocados crossing the border into the Lower Rio Grande Valley each week.  There’s also a significant amount of Mexican watermelons moving into Texas as well.  The valley itself continues to ship various vegetables.

New Mexico — It may not be big volume, but onions are being shipped from the Las Cruces area.

Michigan — Light to moderate volumes of apples are available from Western Michigan.  In about a month vegetable shipments will get underway.

Wisconsin — Potato loadings continue from the Stevens Point (central Wisconsin) area in moderate volume.

Colorado — The San Luis Valley is averaging around 500 truckloads of potatoes a week.

Nebraska — The Cornhusker state is certainly no Idaho, or even a Colorado or Wisconsin, when it comes to potato shipments.  However, there are spuds in limited amounts coming out the Southwestern (Imperial) and Northeastern (O’Neill) parts of the state.

 Wisconsin potatoes – grossing about $2000 to Houston.

South Texas produce – about $4600 to New York City.

 

 

 

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National Loading Opportunties

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Going from East to West  with U.S. produce shipping areas, in Florida I’m not sure why rates are little, if any more to Boston than to New York City.  Afterall, you’ve got another 200 miles to Boston from Florida.  Of course, Boston traditionally offers fewer return loads.  So if you can gross $3600 to New York, surely a load of Florida vegetables, melons etc. should be getting close to $4000.

Southern Georgia shipments are cranking up with peppers, squash, greens and cabbage, while Southeastern Georgia Vidalia onions are in full shipping mode.  Overall, expect Vidalia onion loadings to be off 20 to 30 percent this season due to disease.

In South Texas, sweet onion shipments are two to three weeks ahead of schedule and should be pretty much finished around May 10th.  The Lower Rio Grande Valley also is loading items ranging from citrus, to beets, greens, cabbage, etc.

There are steady shipments of Idaho potatoes — grossing about $4200 to Atlanta.

The same holds for storage onions from the Idaho and Malhuer County, Oregon region — grossing about $5400 to Baltimore.

South Texas produce – about $2800 to Los Angeles.

Vidalia, GA onions – about $2600 to Chicago.

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A Look at National Produce Shipments

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Supplies of refrigerated a equipment are tightening some as we get further into spring.   How big a shortage of trucks for hauling produce will be this year will start to reveal itself in the weeks ahead and should be really interesting by late May and onward through the summer.

In Florida, blueberry loadings from Central and North Florida are now in good volume and hauls are available into June….Meanwhile, Georgia “blues” are right behind Florida.  Good Georgia blueberry shipments should be available by next week….Back to Florida, rates for hauling watermelons out of the southern part of the state have jumped 20 percent in recent days.  Vegetable volume from Florida continues to be heavy.

In South Texas, vegetables continue to be loaded, combined with a lot of veggies and tropical fruit from Mexico crossing the border into Texas.  Cantaloupe shipments have started from the Rio Grande Valley.  There’s still no overall damage reports on storm-hit watermelons in South Texas.  There will be fewer loads, but who knows how much less?  Loadings are light, but will be increasing and continue into mid-June.

In California, the Imperial Valley is quieter with the seasonal end of vegetable shipments.  However, cantaloupe shipments will start in mid-May….About 300 truckload equivalents of carrots are being shipped weekly from the Bakersfield area.

Southern California continues to ship good volumes of avocados, strawberries and citrus…..The Santa Maria district, along with the Salinas Valley will become more active with produce shipments in the weeks ahead.

In Washington state, there are steady loadings of apples and pears from the Yakima and Wenatchee valleys.

Washington state apples and pears – grossing about $4200 to Chicago.

Southern California produce – grossing about $5000 to Chicago.

South Texas produce  – about $4800 to New York City.

South Florida veggies – about $3600 to New York City.

 

 

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Best Bets for Produce Loads

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Your best bets for getting quickly loaded these days are Southern California, South and Central Florida, as well as Nogales, AZ.

In Southern Cal, whether talking strawberries, oranges, avocados and some
vegetables, the best volume is here, although there’s increasing activity in the San Joaquin Valley, Salinas and Santa Maria….Mexican produce crossing the border at Nogales continues in brisk volume, although we’ll start seeing a seasonal decline the further we get into April.  By late April or early May imports of  grapes from Mexico will start taking center stage.

In Florida, volume will should follow a similar path of Mexican imports at Nogales.  There are large variences in Florida produce rates depending on the area, and the commodities you are hauling, and to a certain extent when you are available to load and how bad the shipper needs a truck.  For example rates to New York are varying anywhere from $3000 to $4000.

In south Texas, hail damage a couple of weeks ago wiped out 20 to 30 percent of the areas 10,000 acres of watermelons.  Some onions also were hit, but not as much.  The Lower Rio Grande Valley also is a big shipper of grapefruit and oranges.  But it’s going to be awhile before we’ll know how much shipments starting next fall will be affected.

Nationally, three percent more apples remain in storages for shipping, with much of that fruit being in Washington state.  Steady shipments should continue through the summer.

Yakima Valley, WA apples – grossing about $5700 to Pittsburgh.

South Texas veggies – about $1600 to Oklahoma City.

Central Florida veggies – about $3500 to New York City.

Southern California produce – about $5000 to Chicago.

 

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Texas Spring Produce Shipments

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Texas is among the top one-half dozen states when it comes to fresh produce shipments.  Although it has lost acreage and production over the years as more growing operations were shifted to Mexico, the Lone Star State still remains an important piece in the nation’s food supply chain.  Although the production/acrerage may not necessarily increase in coming years, the amount of produce coming in from Mexico should increase significantly starting in 2013 with the completion of a Mexican highway connecting production areas in Western Mexico with the Lower Rio Grande Valley of Texas.

Onion shipments have started from South Texas, which is the state’s leading vegetable item in volume, coming off of 20,000 acres.  Other leading veggies from the state is cabbage, carrots and spinach, although there’s dozens of other veggies.

However, there were heavy rains and hail in Hidalgo County on March 29th, and we’re still waiting on damage assessments to see how much truck loadings will be affected.  This includes another big item from Texas, watermelons.  The good news is hail storms are usually localized, meaning some fields may have been hit, while others may escape damage altogether.

By the end of this year, a 143-mile cross-continental highway known as the Autopista Durango-Mazatlan is scheduled for completion.  It will reduce travel time from West Mexican growing regions to ports in Texas.  This won’t mean the closing  or reduced importance of  the major Mexican crossing at Nogales, AZ.  It could mean more loading opportunities for U.S. truckers for Mexican produce crossing the border into the Lower Rio Grande Valley.

Texas vegetables grossing – about $2500 to Atlanta.

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Central U.S. Produce Shipments

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Supplies of refrigerated equipment are tightening for hauling Lower Rio Grande Valley produce, as well as Mexico fresh products crossing the border into Texas.  This has resulted in some relatively small rate increases.  Everything from grapefruit, oranges, greens, and cabbage, among other items are being hauled out of South Texas to various U.S. destinations.

There continues to be steady movement of Colorado potatoes out of the San Luis Valley…..The same goes for Michigan apples from the Western part of the state.

In the Red River Valley of North Dakota and Minnesota shipments of red potatoes have recently increased by about 15 percent.  Most of this season, loadings have been below those of a year ago.  However, increased demand should keep shipments above 2011 levels through the spring and into the summer.  No significant rate increases have been reported.

Grand Forks, ND red potatoes shipments – grossing about $3900 to Philadelphia.

Colorado russet potatoes – about $1600 to Dallas.

Michigan apples – $2000 to Houston.

South Texas produce – $3000 to Chicago.

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