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It was in early June that truck broker Kenny Lund saw the spot market on produce freight rates hit $10,000 for loads between California and the East Coast. While part of the reason was seasonal volume increases for fresh fruits and vegetables, and truck availability, he saw other factors contributing to the rise in rates.
Lund was speaking at the 2014 convention and exhibition of the United Fresh Produce Association in Chicago June 11th.
The vice president, support operations, for the Allen Lund Co. Inc. of LaCanada, CA cited the recently completed 72-hour U.S. Department of Transportation check points held across the country. This was delaying truck schedules.
Another factor was the CARB (California Air Resources Board) regulations, which Lund said were resulting in more truckers refusing to come to California. It takes a minimum investment by truckers of $8,000 to comply with CARB regulations.
“It is impossible to be compliant and move significant amounts of refrigerated product into and out California,” Lund stated
He noted less than 30 percent of refrigerated carriers are compliant with CARB and truckers simply do not have the money to become compliant.
In an effort to assist produce haulers, he noted Allen Lund Co. provides $1.5 million a week in advances to drivers.
Lund, who has been with company founded by his father and namesake 25 years, said there were over 50,000 carriers in the United States, but the average trucking company has less than six trucks.
“90 percent of the trucking companies have six or less trucks,” he noted. At the same time the percentage is very low of trucks having team drivers.
Getting more specific, Lund said refrigerated carriers are dominated by owner operators and companies with less than five trucks.
As for CARB, Lund said he has “fought tooth and nail with them” (California bureaucrates). Since the CARB rules were implemented in 2004 fines have been extended to brokers, shippers, receivers and specifically to drivers.
“It (CARB rules) has driven a lot of drivers away from California,” Lund stated.
He also was critical of hours-of-service regulations, and particularly the 34-hour restart. While the restart requirement may be okay for local trucking, it is not good for long haul drivers.
During a question and answer session, Lund said the reason more large refrigerated carriers do not haul produce is because “it comes down the driver having a stake in that load. I see a lot of large carriers get in and out of hauling produce. It comes down to not having enough good drivers,” Lund concluded.
Despite a colder than normal spring, with more rain than usual, Ontario vegetable shippers for the most part appear to be starting their shipping season nearly on time, if only a week or so late.
Major vegetable shippers are located near such cities and towns as: Bradford, Oakland, Scotland, Simcoe, Queensville and Wilsonville.
While there has been some light volume in June, the province of Ontario has its best volume starting in July and continuing into September.
Among the items that have started, or will be underway in the weeks ahead are dill cucumbers, tomatoes, zucchini, sweet corn, eggplant, peppers, okra, snow and snap peas, as well as potatoes.
Ontario vegetable shippers not only ship products to Canadian destinations, but also into the upper Midwest of the United States, as well as to a number of markets on the East Coast.
New York Apple Shipments
Last year, New York state had excellent apple shipments from a full crop, one of the largest crops in history. In fact, last year’s fruit is still being shipped. Now, the 2014-15 crop is being pegged in the 32 million to 34 million bushel range, which would mean another big shipping season. More will be known in July.
You know summer has arrived when Michigan vegetable shipments finally start picking up, mostly from the western part of the state.
Within the past few days, light volume has gotten underway with squash, cucumbers, grape tomatoes. These items should have good volume from July through September. Cabbage loadings also have started and will continue into mid November.
Shortly after the Fourth of July, look for blueberry shipments to get started. Leafy greens and radishes also get underway in early July. By mid July you’ll find loadings of celery and carrots.
Around the third week of July, sweet corn shipments start. Peak volume will be the month of August but shipments tailing off after Labor Day. Late July also means roma tomatoes are available, with round tomatoes coming on about August 1st.
Michigan apple shipments from the large 2103-14 crop are still ongoing, but a seasonal decline is underway with loadings now less than 100 truckloads per week.
The Wolverine state produces the second most diverse crop of agricultural products (after California) , including fresh fruits and vegetables.
Michigan apples – grossing about $2500 to Atlanta.
Here’s a glimpse of loading opportunities around the country ranging from New Jersey blueberries to Washington state stone fruit and apples, as well as peaches and vegetables from Georgia. Finally, California’s San Joaquin Valley grapes have gotten an early start.
Hammonton, New Jersey calls itself the “Blueberry Capital of the World” because of the heavy volume typically shipped each year. New Jersey blueberry shipments just got underway last week and volume should build rapidly. Total shipments in 2014 could be similar to a year ago, when it totaled 65 million pounds.
Washington state cherry shipments are moving into good volume from the Yakima and Wenachee Valleys. Cherries out of the Northwest (mostly Washington) should total 20 to 22 million boxes this season, not that far off of the record setting shipments of 23 million boxes in 2012…..Other stone fruit shipments, led by peaches, will get underway in July. Peak volume for loadings are expected between mid August to mid September. Good volume, similar to a year ago, is forecast at this time…..Meanwhile, 2013-14 apple shipments continue, averaging over 1,900 truckload equivalents per week.
In California, grape shipments from the Southern San Joaquin Valley started in a light way about a week ago. Volume is increasing from this area known as the Arvin District, which is near Bakersfield.
Sweet onion shipments have started in Washington state from the Walla Walla area. Walla Walla onion shipments come off of 700 acres and typically amount to about 400,000 40-pound cartons per year.
Georgia peaches are about to take off. It’s been a slow start, but as we enter July expect this to be a good month for loading opportunities with peaches out of the Fort Valley area. July should be an active month for Georgia mixed vegetables from central and southern areas. There also are Vidalia sweet onions being shipped from storages.
Georgia mixed vegetables – grossing about $2700 to Chicago.
Washington apples – grossing about $7200 to New York City.
Colorado peach shipments are expected to get underway in the middle of July.
Peach shipments originate from relatively few shippers on the Western Slope of Colorado’s, beautiful Rocky Mountains, generally in the Grand Junction area. Shipments should continue through mid August and possibly up to the first of September.
There also will be a limited amount of cherries coming on around the first of July. The apricot crop apparently will amount to few, if any this year. The Grand Junction area also will start shipping watermelons in mid July.
Colorado ranks sixth nationally in peach shipments, behind top ranked California, then South Carolina, Georgia, New Jersey and Pennyslvania.
Looking a bit further down the road, Colorado’s Western Slope will have apple shipments and pear shipments starting around the end of August.
Chiquita Brands International Inc., is returning to the Port of New Orleans after a 40-year absence.
Based in Charlotte, N.C., Chiquita plans to relocate operations from Gulfport, Miss., to The Crescent City in early 2015. During the mid-1970s, Chiquita, which then did business as United Brands, transferred shipping operations from New Orleans to the Port of Gulfport after importing bananas and other fruit for more than 70 years in New Orleans.
Chiquita is forecast to ship 60,000-78,000 20-foot-equivalent units (TEUs) a year at the New Orleans port. The volume represents a 15% increase in the port’s current container volume. Chiquita plans to handle 30,000-39,000 TEUs of bananas and other fresh fruit at the port as well as export those same volumes of other outbound cargos.
Louisiana was in talks with Chiquita for a decade and to help reduce the port’s increased shipping and handling costs. The state of Louisiana plans to provide the banana giant $1.11 million-$1.45 million or $18.55 per TEU in yearly performance-based incentives.
The port is planning to invest $2.2 million in improvements at a port-owned distribution and ripening facility to be leased to Chiquita As part of the deal, the port also intends to fund $2 million in refrigerated-container electrical infrastructure improvements and rehabilitate a container freight warehouse, according to the release.
By Vidalia Onion Committee
Vidalia, GA — Recent sales data research by the Vidalia Onion Committee indicates that sweet onions lead the onion category with the largest dollar sales (35%) and Vidalia onions represent 62% of sweet onion sales. In addition, Vidalia onion sales grew by 12% while all other sweet onions sales grew by only 5%.
The study conducted by the Nielsen Perishables Group, on behalf of the Vidalia Onion Committee, analyzed national sales data over a two year time period (2012-13) and also reviewed retail performance. The results found that Vidalia volume growth at 8% outpaced total onions (4%) during the April 20 – August 17, 2013 season. In addition to the category sales data, the study highlighted key retail opportunities.
“This is exciting news to learn that when in season, Vidalia onions play such a key role in driving the growth of sweet onion sales nationwide,” stated Kevin Hendrix Chairman of the Vidalia Onion Committee. “Our previous consumer research reveals that 91% of consumers are familiar with Vidalia onions and they associate them with superior, sweet flavor so it’s great to match the consumers’ perceptions with the actual sales results.”
Here are some loading opportunities ranging from Southeastern Georgia’s Vidalia onions to pear shipments from the Northwest, and cantaloupe and honeydew volume from California.
Fewer Vidalia onions have been shipped thus far this season. About 1.5 million 40-pound packages had been shipped through May, about 40 percent compared to by the same time last year. Shipments of fresh Vidalias finished in early June now loadings are coming from good supplies of onions from storage. Vidalias out of storage should be available through Labor Day.
Pear Shipments
Fewer shipments of Northwest pears are being forecast for the up coming season starting in late July. About 18.7 million boxes are expected to be hauled out of Washington and Oregon in the 2014-15 season, 13 percent less than in 2013-14 and 6 percent less than the five-year. The harvest should wind down in mid-October. Green anjous are expected to make up 53 percent of the Northwest volume, with bartletts at 23 percent and boscs 14 percent.
Yakima Valley apples, pears and cherries – grossing about $4300 to Chicago.
Melon Shipments
Shipments of cantaloupe and honeydew from Central California (Westside District) could get underway anywhere from a few days, to a couple of weeks early, depending on the field. There will be light volume the first two or three weeks of July, with much better movement beginning in late July and continuing into October. There has been a reduction of acreage in some of the earlier growing districts such as Huron and an increase in plantings farther north in such areas as Los Banos and Turlock.
Central San Joaquin Valley fruit – grossing about $8800 to New York City – higher towards the end of the week.
Following a slow start New Mexico onion loadings should be increasing as competition from other areas subside. In Michigan, blueberries will be joining mixed vegetable shipments.
New Mexico onion shipments got underway in light volume in early June. Loadings are expected to improve with seasons ending from onions out of West Texas and California’s Imperial Valley. The state ranks eigth in onion acreage behind Washington, Idaho-Eastern Oregon, California, Georgia, New York, Texas and West-Central Oregon. When considering yields, New Mexico actually comes in sixth nationwide. Most of New Mexico onion loads are available from a handful of shippers in the Las Cruces area.
Michigan Produce Shipments
Early reports in Michigan show an excellent bloom in apple orchards. Two years ago, freezing weather nearly wiped out the state’s apple crop, but last season it came back with record volume. The promising bloom this spring is bring early forecasts of another season for large volume apple shipments, despite the Grand Rapids area having a near record 116 inches of snow last winter.
Similar to mixed vegetable shipments out of Michigan this spring, the upcoming blueberry season is dragging, expecting to be a good week to 10 days later than usual. Michigan blueberry shipments should start in mid July.
New Mexico onions – grossing about $3800 to Chicago.
Here’s a checker board summarizing potential loading opportunities (or lack thereof) from areas ranging from the Southeast to the Northeast — and the Northwest.
Georgia Blueberry Shipments
Georgia blueberries are entering their peak shipping period from the Alma and Baxley areas that will continue through the Fourth of July. The season will end soon after the holiday.
Georgia blueberry and mixed vegetables – grossing about $3100 to New York City. Vidalia onions from storage – about $3900 to New York City.
Florida Produce Shipments
Not much happening for produce haulers in Florida this time of the year. However, avocado shipments get underway in late June, with decent volume coming in July. About 1.1 million bushels are expected to be shipped this season, similar to the volume of a year ago.
Western Berry Shipments
Strawberry shipments out of Watsonville, CA and blueberry volumes the Pacific Northwest should be good leading up to the Fourth of July.
Watsonville strawberries and Salinas mixed vegetables – grosssing about $8300 to New York City; often higher towards the end of the week.
Northwest Apricot, Cherry Shipments
Apricot shipments get underway in light volume this week, with much better volume next week from the Yakima and Wenatchee valleys of Washington. Apricot volume is predicted to be up 9 percent over last season. Cherry shipments have started. Although no record loadings are predicted, it is still one of the biggest crops on record.
New York Produce Shipments
Late start due to weather will probably limit New York state sweet corn loadings.
Watermelon Shipments
Watermelon shipments in many areas, particiularly on the East Coast are late, and loading opportunities will be down from normal prior to Independence Day.
North Florida watermelons – grossing about $3700 to New York City.
It was in early June that truck broker Kenny Lund saw the spot market on produce freight rates hit $10,000 for loads between California and the East Coast. While part of the reason was seasonal volume increases for fresh fruits and vegetables, and truck availability, he saw other factors contributing to the rise in rates.
Lund was speaking at the 2014 convention and exhibition of the United Fresh Produce Association in Chicago June 11th.
The vice president, support operations, for the Allen Lund Co. Inc. of LaCanada, CA cited the recently completed 72-hour U.S. Department of Transportation check points held across the country. This was delaying truck schedules.
Another factor was the CARB (California Air Resources Board) regulations, which Lund said were resulting in more truckers refusing to come to California. It takes a minimum investment by truckers of $8,000 to comply with CARB regulations.
“It is impossible to be compliant and move significant amounts of refrigerated product into and out California,” Lund stated
He noted less than 30 percent of refrigerated carriers are compliant with CARB and truckers simply do not have the money to become compliant.
In an effort to assist produce haulers, he noted Allen Lund Co. provides $1.5 million a week in advances to drivers.
Lund, who has been with company founded by his father and namesake 25 years, said there were over 50,000 carriers in the United States, but the average trucking company has less than six trucks.
“90 percent of the trucking companies have six or less trucks,” he noted. At the same time the percentage is very low of trucks having team drivers.
Getting more specific, Lund said refrigerated carriers are dominated by owner operators and companies with less than five trucks.
As for CARB, Lund said he has “fought tooth and nail with them” (California bureaucrates). Since the CARB rules were implemented in 2004 fines have been extended to brokers, shippers, receivers and specifically to drivers.
“It (CARB rules) has driven a lot of drivers away from California,” Lund stated.
He also was critical of hours-of-service regulations, and particularly the 34-hour restart. While the restart requirement may be okay for local trucking, it is not good for long haul drivers.
During a question and answer session, Lund said the reason more large refrigerated carriers do not haul produce is because “it comes down the driver having a stake in that load. I see a lot of large carriers get in and out of hauling produce. It comes down to not having enough good drivers,” Lund concluded.
Despite a colder than normal spring, with more rain than usual, Ontario vegetable shippers for the most part appear to be starting their shipping season nearly on time, if only a week or so late.
Major vegetable shippers are located near such cities and towns as: Bradford, Oakland, Scotland, Simcoe, Queensville and Wilsonville.
While there has been some light volume in June, the province of Ontario has its best volume starting in July and continuing into September.
Among the items that have started, or will be underway in the weeks ahead are dill cucumbers, tomatoes, zucchini, sweet corn, eggplant, peppers, okra, snow and snap peas, as well as potatoes.
Ontario vegetable shippers not only ship products to Canadian destinations, but also into the upper Midwest of the United States, as well as to a number of markets on the East Coast.
New York Apple Shipments
Last year, New York state had excellent apple shipments from a full crop, one of the largest crops in history. In fact, last year’s fruit is still being shipped. Now, the 2014-15 crop is being pegged in the 32 million to 34 million bushel range, which would mean another big shipping season. More will be known in July.
You know summer has arrived when Michigan vegetable shipments finally start picking up, mostly from the western part of the state.
Within the past few days, light volume has gotten underway with squash, cucumbers, grape tomatoes. These items should have good volume from July through September. Cabbage loadings also have started and will continue into mid November.
Shortly after the Fourth of July, look for blueberry shipments to get started. Leafy greens and radishes also get underway in early July. By mid July you’ll find loadings of celery and carrots.
Around the third week of July, sweet corn shipments start. Peak volume will be the month of August but shipments tailing off after Labor Day. Late July also means roma tomatoes are available, with round tomatoes coming on about August 1st.
Michigan apple shipments from the large 2103-14 crop are still ongoing, but a seasonal decline is underway with loadings now less than 100 truckloads per week.
The Wolverine state produces the second most diverse crop of agricultural products (after California) , including fresh fruits and vegetables.
Michigan apples – grossing about $2500 to Atlanta.
Here’s a glimpse of loading opportunities around the country ranging from New Jersey blueberries to Washington state stone fruit and apples, as well as peaches and vegetables from Georgia. Finally, California’s San Joaquin Valley grapes have gotten an early start.
Hammonton, New Jersey calls itself the “Blueberry Capital of the World” because of the heavy volume typically shipped each year. New Jersey blueberry shipments just got underway last week and volume should build rapidly. Total shipments in 2014 could be similar to a year ago, when it totaled 65 million pounds.
Washington state cherry shipments are moving into good volume from the Yakima and Wenachee Valleys. Cherries out of the Northwest (mostly Washington) should total 20 to 22 million boxes this season, not that far off of the record setting shipments of 23 million boxes in 2012…..Other stone fruit shipments, led by peaches, will get underway in July. Peak volume for loadings are expected between mid August to mid September. Good volume, similar to a year ago, is forecast at this time…..Meanwhile, 2013-14 apple shipments continue, averaging over 1,900 truckload equivalents per week.
In California, grape shipments from the Southern San Joaquin Valley started in a light way about a week ago. Volume is increasing from this area known as the Arvin District, which is near Bakersfield.
Sweet onion shipments have started in Washington state from the Walla Walla area. Walla Walla onion shipments come off of 700 acres and typically amount to about 400,000 40-pound cartons per year.
Georgia peaches are about to take off. It’s been a slow start, but as we enter July expect this to be a good month for loading opportunities with peaches out of the Fort Valley area. July should be an active month for Georgia mixed vegetables from central and southern areas. There also are Vidalia sweet onions being shipped from storages.
Georgia mixed vegetables – grossing about $2700 to Chicago.
Washington apples – grossing about $7200 to New York City.
Colorado peach shipments are expected to get underway in the middle of July.
Peach shipments originate from relatively few shippers on the Western Slope of Colorado’s, beautiful Rocky Mountains, generally in the Grand Junction area. Shipments should continue through mid August and possibly up to the first of September.
There also will be a limited amount of cherries coming on around the first of July. The apricot crop apparently will amount to few, if any this year. The Grand Junction area also will start shipping watermelons in mid July.
Colorado ranks sixth nationally in peach shipments, behind top ranked California, then South Carolina, Georgia, New Jersey and Pennyslvania.
Looking a bit further down the road, Colorado’s Western Slope will have apple shipments and pear shipments starting around the end of August.
Chiquita Brands International Inc., is returning to the Port of New Orleans after a 40-year absence.
Based in Charlotte, N.C., Chiquita plans to relocate operations from Gulfport, Miss., to The Crescent City in early 2015. During the mid-1970s, Chiquita, which then did business as United Brands, transferred shipping operations from New Orleans to the Port of Gulfport after importing bananas and other fruit for more than 70 years in New Orleans.
Chiquita is forecast to ship 60,000-78,000 20-foot-equivalent units (TEUs) a year at the New Orleans port. The volume represents a 15% increase in the port’s current container volume. Chiquita plans to handle 30,000-39,000 TEUs of bananas and other fresh fruit at the port as well as export those same volumes of other outbound cargos.
Louisiana was in talks with Chiquita for a decade and to help reduce the port’s increased shipping and handling costs. The state of Louisiana plans to provide the banana giant $1.11 million-$1.45 million or $18.55 per TEU in yearly performance-based incentives.
The port is planning to invest $2.2 million in improvements at a port-owned distribution and ripening facility to be leased to Chiquita As part of the deal, the port also intends to fund $2 million in refrigerated-container electrical infrastructure improvements and rehabilitate a container freight warehouse, according to the release.
By Vidalia Onion Committee
Vidalia, GA — Recent sales data research by the Vidalia Onion Committee indicates that sweet onions lead the onion category with the largest dollar sales (35%) and Vidalia onions represent 62% of sweet onion sales. In addition, Vidalia onion sales grew by 12% while all other sweet onions sales grew by only 5%.
The study conducted by the Nielsen Perishables Group, on behalf of the Vidalia Onion Committee, analyzed national sales data over a two year time period (2012-13) and also reviewed retail performance. The results found that Vidalia volume growth at 8% outpaced total onions (4%) during the April 20 – August 17, 2013 season. In addition to the category sales data, the study highlighted key retail opportunities.
“This is exciting news to learn that when in season, Vidalia onions play such a key role in driving the growth of sweet onion sales nationwide,” stated Kevin Hendrix Chairman of the Vidalia Onion Committee. “Our previous consumer research reveals that 91% of consumers are familiar with Vidalia onions and they associate them with superior, sweet flavor so it’s great to match the consumers’ perceptions with the actual sales results.”
Here are some loading opportunities ranging from Southeastern Georgia’s Vidalia onions to pear shipments from the Northwest, and cantaloupe and honeydew volume from California.
Fewer Vidalia onions have been shipped thus far this season. About 1.5 million 40-pound packages had been shipped through May, about 40 percent compared to by the same time last year. Shipments of fresh Vidalias finished in early June now loadings are coming from good supplies of onions from storage. Vidalias out of storage should be available through Labor Day.
Pear Shipments
Fewer shipments of Northwest pears are being forecast for the up coming season starting in late July. About 18.7 million boxes are expected to be hauled out of Washington and Oregon in the 2014-15 season, 13 percent less than in 2013-14 and 6 percent less than the five-year. The harvest should wind down in mid-October. Green anjous are expected to make up 53 percent of the Northwest volume, with bartletts at 23 percent and boscs 14 percent.
Yakima Valley apples, pears and cherries – grossing about $4300 to Chicago.
Melon Shipments
Shipments of cantaloupe and honeydew from Central California (Westside District) could get underway anywhere from a few days, to a couple of weeks early, depending on the field. There will be light volume the first two or three weeks of July, with much better movement beginning in late July and continuing into October. There has been a reduction of acreage in some of the earlier growing districts such as Huron and an increase in plantings farther north in such areas as Los Banos and Turlock.
Central San Joaquin Valley fruit – grossing about $8800 to New York City – higher towards the end of the week.
Following a slow start New Mexico onion loadings should be increasing as competition from other areas subside. In Michigan, blueberries will be joining mixed vegetable shipments.
New Mexico onion shipments got underway in light volume in early June. Loadings are expected to improve with seasons ending from onions out of West Texas and California’s Imperial Valley. The state ranks eigth in onion acreage behind Washington, Idaho-Eastern Oregon, California, Georgia, New York, Texas and West-Central Oregon. When considering yields, New Mexico actually comes in sixth nationwide. Most of New Mexico onion loads are available from a handful of shippers in the Las Cruces area.
Michigan Produce Shipments
Early reports in Michigan show an excellent bloom in apple orchards. Two years ago, freezing weather nearly wiped out the state’s apple crop, but last season it came back with record volume. The promising bloom this spring is bring early forecasts of another season for large volume apple shipments, despite the Grand Rapids area having a near record 116 inches of snow last winter.
Similar to mixed vegetable shipments out of Michigan this spring, the upcoming blueberry season is dragging, expecting to be a good week to 10 days later than usual. Michigan blueberry shipments should start in mid July.
New Mexico onions – grossing about $3800 to Chicago.
Here’s a checker board summarizing potential loading opportunities (or lack thereof) from areas ranging from the Southeast to the Northeast — and the Northwest.
Georgia Blueberry Shipments
Georgia blueberries are entering their peak shipping period from the Alma and Baxley areas that will continue through the Fourth of July. The season will end soon after the holiday.
Georgia blueberry and mixed vegetables – grossing about $3100 to New York City. Vidalia onions from storage – about $3900 to New York City.
Florida Produce Shipments
Not much happening for produce haulers in Florida this time of the year. However, avocado shipments get underway in late June, with decent volume coming in July. About 1.1 million bushels are expected to be shipped this season, similar to the volume of a year ago.
Western Berry Shipments
Strawberry shipments out of Watsonville, CA and blueberry volumes the Pacific Northwest should be good leading up to the Fourth of July.
Watsonville strawberries and Salinas mixed vegetables – grosssing about $8300 to New York City; often higher towards the end of the week.
Northwest Apricot, Cherry Shipments
Apricot shipments get underway in light volume this week, with much better volume next week from the Yakima and Wenatchee valleys of Washington. Apricot volume is predicted to be up 9 percent over last season. Cherry shipments have started. Although no record loadings are predicted, it is still one of the biggest crops on record.
New York Produce Shipments
Late start due to weather will probably limit New York state sweet corn loadings.
Watermelon Shipments
Watermelon shipments in many areas, particiularly on the East Coast are late, and loading opportunities will be down from normal prior to Independence Day.
North Florida watermelons – grossing about $3700 to New York City.