Author Archive

Maersk Resumes Container Line Service Through Panama Canal

By |

AP Moller-Maersk said it will resume its north-south service through the Panama Canal after its suspension in January due to low water levels and reduced transits.

The OC1 service, resuming May 10, runs between the U.S. East Coast, specifically Philadelphia and Charleston ports, Australia and New Zealand.

When the service was paused in January, as a result of drought conditions, Maersk decided to split it into an Atlantic and Pacific loop combined with a land bridge in Panama with a rail connection.

This set-up will be dropped and the service will revert to its single former rotation, operating with 11 ships of between 3,100 TEU and 3,800 TEU, according to Alphaliner.

On March 11, the Panama Canal Authority announced they would increase daily transits that month from 24 to 27 ships, in response to the current and projected level of Lake Gatun, which feeds the canal. 

The authority said the measure allows most vessels wishing to transit the canal to request a reservation.

According to Clarksons Research, the average wait time at a defined Panama Canal anchorage in the first quarter of this year was 23 hours, up from the 16-hour average in 2022, but still down from the 36-hour average in December last year.

Transit restrictions have not been as severe as originally planned, with liner solutions mitigating some of the impacts, such as using the land bridge utilizing the rail connection across Panama.

Read more »

Sunkist is Increasing Shipments of Lemons and Limes this Season

By |

Sunkist Growers of Valencia, CA is one of the state’s largest lemon shippers and is expanding its volume by adding multiple organic lemon growers this season to meet consumer and customer demand for year-round supply.

The company also has increased its lime volume by expanding it list of growers. 

Noting increasing lemon and lime demand compared with pre-COVID levels, foodservice demand continues to regain its footing following the pandemic.

Read more »

AI and Logistics

By |

By Josh Rivera, ALC St. Louis

Everyday, we hear more and more about how AI is being implemented in all sorts of industries across the globe. There is a need to automate certain processes in all aspects of business to increase efficiency, especially in the logistics industry. Though we are in the early stages of adopting AI and learning where it can provide the most benefit, we are already seeing some of this technology in warehouse automation and robotics and the early stages of driverless vehicles. AI can assist in data collection and analytics to provide real-time information. 

In Bart De Muynck’ Forbes article The True Role of AI in Logistics, he states, “AI is being used to improve data quality, generate data through Generative AI when real data is not available and provide valuable insights through predictions (like an ETA or dwell times) or forecasts (available capacity of assets or at ports). By implementing real-time visibility, companies can share information, updates, and forecasts with suppliers, customers, and partners.” We know AI can offer much but, just like everything else, it’s not perfect. Transportation is and will remain a human central function, but paired with AI technology can propel the industry forward. The key is for companies to stop looking in the past, and use this information to help predict and adjust for the future.  

Even in the early stages, AI is demonstrating its value in the logistics industry. As time progresses, its capabilities will only improve. It’s only a matter of time before we witness its widespread adoption. AI’s limitless potential is a compelling prospect for every industry, including logistics, in managing and optimizing their supply chains.

*****

Josh Rivera studied at Western Illinois University where he received a BA in Marketing. Josh has been working in the ALC St. Louis office for six years as a transportation broker. Out of the office, he is a musician who enjoys playing the drums and ukulele. He has two dogs, Bella and Louie, who love to play and keep him busy.

josh.rivera@allenlund.com

Read more »

US Apple Exports Jump 47% Compared to Same Time Last Season

By |

U.S. apple exports exceeded 1 billion pounds during the August to January time period, according to recent USDA data. The volume represents a 47% increase compared to the same period last year.

The increase in export volume was led by Mexico, the main destination for U.S. apples, which jumped from 205 million pounds in 2022-23 to 299 million in the current season. 

Another market pushing export growth is India. After India removed retaliatory tariffs of 20% on U.S.-grown apples for the 2023-24 season, mid-season export volumes grew 16 times higher than the 2022-23 season total. 

Before the tariffs were imposed, Washington state exported US $120 million worth of apples to India. At the lowest point, Washington growers exported less than US$1 million. 

Through January 2024, the U.S. had exported almost 39 million pounds of apples to India, compared to the 584,000 pounds it exported in the same period last season. 

In 2023, various trade policies negotiated by the U.S. government, including tariff removals for apples, helped U.S. agricultural producers and exporters of different products gain access to potential markets worth nearly $6.4 billion, according to the USDA.

In Taiwan, U.S. apple exports also enjoyed impressive growth from 51.5 million pounds in 2022-23 to 123 million in the current season. The U.S. remains the main supplier of apples to this market. 

Volumes to China are also on the rise. Even though the country has just over 1% share of total exports, shipments this season have grown 84%, reaching more than 19 million pounds. 

Colombia also seems to be recovering demand for U.S. apples, following a big drop last season when it imported only 6.6 million pounds. This year, shipments have passed 30 million. 

It has been a historic year for apples in the U.S., with forecasts indicating more than 10.5 billion pounds expected for production. The record harvested posted an unexpected challenge to growers: oversupply. 

Read more »

Rebound from a Year Ago is Expected with California Blueberry Loadings

By |

California blueberry volumes have been increasing in recent weeks, with a much better season anticipated this year.

The state’s volume typically peaks around the third week of May, with blueberries available from mid-late April to mid-June. 

The California Blueberry Commission reports estimates indicate about 80 million pounds of blueberries being shipped this season. 

Of this total, 60 million should be fresh blueberries, and 20 million pounds processed.

This figure would represent a nearly 20 million-pound increase from last year when the crop was hindered by cold and rainy weather.

The last blueberry acreage assessment in California showed among the three California districts (divided into coast, north, and south) district 3, including Fresno County to the south, had the largest acreage of blueberry plantations in the state.

About 27% of blueberry acreage is in Tulare County, followed by San Joaquin and Fresno counties.

California’s largest blueberry export market is Canada, and has been for many years.

Read more »

Mexican Avocado Shipments Poised for Another Year of Growth

By |

With a forecasted 5% growth in production for 2024, the Mexican avocado industry continues to reign supreme. A recent report by the USDA puts this year’s production at 2.77 million tons as trade and demand remain strong.

The United States is the largest importer of Mexican avocados, taking 81% of shipments. Exports to the U.S. were valued at USD$2.7 billion in 2023. Canada, Japan, and Spain complete the podium as top buyers.

Until July 2022, Michoacán was the only Mexican avocado-producing state eligible to export to the United States. With Jalisco entering the game, overall exports rose 17% year-on-year in 2023.

Production has grown steadily during the past ten years, mostly due to increasing demand, as well as rising domestic consumption. According to official data, annual per capita avocado consumption in Mexico grew from about 18 pounds in 2021 to nearly 24 pounds in 2023.

However, Mexicans continue to see avocados as a luxury item, and the fruit is not included in the basic food basket defined by the government.

Between 2014 and 2023, production volumes grew nearly 75%, reaching 2.65 million tons. These figures have kept Mexico well-grounded as the number one avocado producer globally.

Additional data from Mexico’s Agri-Food and Fisheries Information System (SIAP) said production reached 2.65 million tons in 2023. This was a 4% increase year-on-year.

Acreage has also seen exponential growth, going from 434,757 acres in 2014 to 636,471 in 2023.

Read more »

Food as Medicine Strategy is Effective, According to New Study

By |

A new study of programs concludes providing free, weekly home delivery of fresh fruits and vegetables from local farms helped improve health outcomes.

The research, presented at the March 18-21 American Heart Association’s Epidemiology and Prevention, Lifestyle and Cardiometabolic Scientific Sessions 2024 in Chicago, said the home delivery of fresh produce improved recipients’ nutrition levels, physical activity levels and cardiovascular disease risk factors.

A summary of the research said that after 16 weeks of free, weekly home delivery of fresh produce, study participants boosted their fruit and vegetable consumption by almost half of a serving per day and added 42 minutes to their weekly level of physical activity.

One year later, participants had better blood sugar control and lower bad cholesterol levels compared to adults who did not receive free, weekly produce deliveries, according to the research summary. The study also found that adults who participated in the free, weekly produce program had improved cardiovascular health measures.  

“We all know that eating healthier foods, like fruits and vegetables, is good for you, however, sometimes we focus too much on finding a simple solution rather than taking small, preventative measures to improve health,” lead study author Lisa Goldman Rosas, an assistant professor in the department of epidemiology and population health and the department of medicine at Stanford School of Medicine, said in a news release. “Food as Medicine programs, such as the Recipe4Health program we studied, aim to shift the focus to ensuring a healthy diet including fresh fruits and vegetables is consistently accessible and affordable to all people to help improve health outcomes.”

Read more »

Fruit World Sets the Stage for a Promising Stone Fruit Shipping Season

By |

Reedley, CA — Fruit World, a fresh and creative produce company, has announced a strong start and an abundant supply of organic stone fruit this season. Fruit World is poised to offer retailers and wholesalers substantial volumes nationwide as the early season kicks off.

Focusing on premium organic stone fruit, Fruit World strives for consistent taste and quality. “This season, our organic apricots and sweet cherries take center stage, showcasing their most abundant volumes yet, arriving three weeks ahead of last year,” shared Cindy Richter, Director of Sales at Fruit World.

The season will start with apricots from Blossom Hill, a multi-generational, pollinator-friendly family farm. Promising strong volumes expected to ship through the end of June, organic and conventional apricots will be available in multiple pack styles, including 100% recyclable packaging, staying true to their eco-conscious ethos. Fruit World will also ship early-season Dreamcot and Solcots out of Reedley for the first two to three weeks in May.

Recognized for providing some of the earliest organic cherries and apricots in the market, Fruit World is well-prepared for spring promotions. Cindy stated, “With California’s famed ‘banana belt’ microclimate, our stone fruit experienced perfect weather for pollination and ideal growing conditions, resulting in a robust supply.” Early organic sweet cherry varieties such as Tioga, Lynn, Hazel, and Coral have experienced a full fruit set, and some have already started to color up. The recent rain is expected to have had a minor effect on the supply, but nothing that Fruit World expects to have a substantial impact.

“All of these factors have aligned to create a strong apricot and cherry program that will be on schedule to meet the needs of spring promotions, notably the Memorial Day surge in demand,” shared Cindy.

About Fruit World

Fruit World is a fresh and creative produce company with generations of history. Fruit World grows and ships the most flavorful fruit in California—including organic and conventional citrus, organic grapes, organic stone fruit, and more—and works with customers who share a passion for quality and taste. They’re all about honoring their growers, staying true to their farming heritage, and keeping family farming thriving for future generations. Visit fruitworldco.com.

Read more »

Imported Mexican Produce Prices are Higher though Volume is off a Little

By |

Fall hurricanes and recent drought combined with other factors have reduced some fresh produce volume in Mexico in recent months, but the value of U.S. imports from the country continues to climb. 

U.S. imports of Mexican fresh vegetables in 2023 totaled $8.5 billion, up 7% from 2022 and 13% higher than 2021, according to USDA data. For 2023, the USDA reported Mexico accounted for 69% of the value of U.S. fresh vegetable imports.

By selected commodity, U.S. imports by value of Mexican fresh vegetables (with percent change from 2022) were: 

  • Tomatoes — $2.7 billion, up 10%.
  • Peppers — $1.5 billion, up 7%.
  • Cucumbers — $805 million, up 14%.
  • Other fresh vegetables — $756 million, up 14%.
  • Lettuce — $497 million, down 13%.
  • Cauliflower and broccoli — $438 million, up 8%.
  • Squash — $408 million, up 1%.
  • Onions — $403 million, down 1%.
  • Asparagus — $360 million, down 1%.
  • Beans — $129 million, up 17%.
  • Celery — $87 million, up 9%.
  • Eggplant — $83 million, up 8%.
  • Carrots — $81 million, up 15%.
  • Cabbage — $61 million, up 3%.
  • Peas — $47 million, up 43%.
  • Garlic — $40 million, up 13%.
  • Radishes — $30 million, up 12%.
  • Okra — $13 million, up 3%.

U.S. imports of Mexican fresh and frozen fruit topped $9.8 billion in 2023, up 3% from 2022 and 12% higher than 2021. Mexico’s share of U.S. fresh and frozen fruit imports was 49% in 2023, trade numbers show. 

By selected commodity, U.S. imports by value of Mexican fresh and frozen fruit (with percent change from 2022) were: 

  • Avocados — $2.7 billion, down 5%.
  • Berries (excluding strawberries) — $2.6 billion, up 4%.
  • Strawberries (fresh or frozen) — $1.3 billion, up 6%.
  • Citrus — $855 million, up 7%.
  • Grapes — $833 million, up 26%.
  • Mangoes — $476 million, up 1%.
  • Melons — $447 million, up 10%.
  • Bananas/plantains — $204 million, down 9%.
  • Pineapple — $43 million, down 14%.

Read more »

Mexican Grape Shipments are Underway

By |

rwpMexican spring table grapes are now crossing the border from the Jalisco growing area, and U.S. grape shipments from California’s Coachella Valley should get started in May.

The official estimate for this year has yet to be released, but Pandol Bros. Inc. of Delano, CA predicts volume will be between 22 million and 24 million boxes.

Last year, Mexican growers shipped about 25 million 18-pound boxes of table grapes to the U.S.

Growers launched an early grape program in Jalisco about five years ago because producers in similar tropical climates such as Brazil, North Peru and India were growing good-quality table grapes. This year, the SEASON began April 1.

Sonora grape shipments out of Mexico should start by May 6.

Grapes from California ship from May to January and represent 99% of all commercially grown table grapes in the U.S.

The California harvest begins in the Coachella Valley in late spring and moves north to the San Joaquin Valley by mid-July.

The state’s growers shipped 77 million 19-pound boxes last year, just over 2 million of which came from the Coachella Valley. That figure was up from about 1.9 million boxes the prior year.

Fresh Farms, is entering its sixth season growing grapes in Jalisco with increased volume each year. The company started with the green Sweet Globe variety and some red Sweet Celebration grapes and Cotton Candy. Now the varieties are expanding.

Divine Flavor of Nogles, AZ ships from Jalisco, which started around March 25 and continues until the middle of May.

Last year Divine Flavor packed about 1 million boxes of premium grape varieties, and this year the firm expects expect to pack approximately 1.8 million boxes.

In the primary production area of Sonora, Divine Flavor expects to be on par with its previous years of around 5 million to 6 million boxes of grapes, which is close to 20% to 25% of the total volume from Mexico.

Bari Produce LLC of Fresno, CA will kick off its central California table grape season in mid-July.

Grower, marketer and distributor Oppy, with offices in Nogales, is set to double its Mexican grape volume for the 2024 season, marking a significant milestone in its commitment to expanding its 365 program.

The enhanced lineup will now include sought-after Sun World varieties, such as AUTUMNCRISP® and RUBY RUSH®. Initial assessments of the grape crop indicate a promising season ahead, with estimates suggesting industry volumes will fall within the 22-24 million box range.

In a move to optimize efficiency and freshness, Oppy has redesigned its supply chain by using its cold storage facilities in Los Angeles for 20% of its volume, reducing mileage and enhancing truck availability. Oppy has also sharpened its focus on exports, particularly into Asian markets, through Delica North America Inc., in which Oppy owns 50% share. 

This news comes after Oppy’s strategic joint venture was announced with Sun Grape USA earlier this year — forming Sun Grape California LLC — An Oppy Company. This collaboration ensures a consistent supply of year-round high-quality grapes, complementing Oppy’s global reach from Peru, Brazil, Chile, South Africa and Mexico, alongside extensive acreage in California.

About Oppy

Growing, marketing and distributing fresh produce from around the globe for over 165 years, Vancouver, BC-based Oppy discovers and delivers the best of the world’s harvest. With over 50 million boxes of fresh fruits and vegetables grown on every continent moving through its supply chain annually, Oppy offers popular favorites from avocados and berries to apples and oranges year-round, alongside innovative seasonal specialties. Go to oppy.com  to learn more.

Read more »