Author Archive
That Florida freeze in early March hit some the state’s sweet corn, green bean and blueberry crops, and will result in fewer loading opportunities in the weeks ahead, although not as seriously as first feared. Actually, Florida is primed for a pretty good spring hauling season.
On March 4 temperatures plunged into the mid-20s as far south as Belle Glade, FL, which is located between the eastern edge of Lake Okeechobee and West Palm Beach, FL.
Initial concerns were the freeze was a lot worse, but not it now appears that shipments of the state’s sweet corn crop will be down by less than 20 percent, although this is still significant.
Blueberries in Northern Florida sustained mild-to-moderate damage to blueberries while central Florida were virtually unaffected. Blueberry loadings have been occurring now for several weeks.
Perhaps the hardist hit of Florida vegetables were green beans. On the positive side, replantings will make loadings availabe by mid-April, at least in light volume. Still over all shipments will be less due to the initial loss. somewhat diminished.
Michigan Apple Update
Michigan apple shipments were virtually demolished in 2012 following a most untimely freeze. The tree has come out of dormancy four-plus weeks early and and were clobbered by nearly two dozen frosts.
Apple shipments were reduced by 90 percent. As a result, Michigan growers and shippers are pretty edgy this time around. So far, so good with cold weather in recent weeks and it should continue for another week or more before spring weather starts arriving. This it is a matter of praying for no more freezes.
Loading opportunities for more than doubled over the past decade for sweet potatoes, although like its cousin the potato, may be the best paying produce item. However, it’s also less risky to haul since it is less perishable.
North Carolina remains the number one shipper of sweet potatoes. The USDA reports it produced 1.24 billion pounds in 2012. California was second at 617 million pounds. Those two states , along with Louisiana and Mississippi, ship over 90 percent of the USA’s sweet potatoes.
In total American truckers will haul 2.65 billion pounds of sweet potatoes from the 2012 crop. This compares with 1.28 billion 10 years ago.
Total acreage in the U.S. in 2011 — the last year for which that statistic is available — was 130,300 acres, up from 82,300 in 2002.
California Strawberry Shipments
California strawberry shippers have been loading a lot of fruit leading up to Easter (March 31). Strawberry loadings will continue heavy from Southern California right on through Mother’s Day (May 12), when Oxnard starts a seasonal decline.
At some point in May the Watsonville/Salinas district should have really crank up with significan shipments, about the same time various types of vegetables really get going.
As of March 9, California strawberry shippers had moved 9.07 million trays, down from 11.8 million trays for the same period in 2012.
The Oxnard district is expected to hit its peak right after Easter.
(Photo – Love these old buildings scattered throughout rural Georgia)
I’ve already been in the Vidalia sweet onion shipping district in Southeastern Georgia and you can expect loading opportunities to be pretty normal this year – if diease doesn’t start showing up in the crop. It’s really too early to tell. If problems do arise it probably won’t be realized, at least to its full extent, until the harvest begins.
Harvesting should get underway around April 10 or so. There is about 12,600 acres of onions planted, which is pretty normal. The big question surrounds about 12 inches of rain the area got over a two-week period the first half March. We’ll just need to watch this situation closely to see if any quality problems come out of it.
This week I’m spending a few days in Central and South Georgia visiting with vegetable shippers as well as peach shippers. Checking with these guys to see how loading opportunities should be panning out for you this spring and summer.
At the same time I’m going to be scoping out several of the truck stops scattered along Interstate 95, primarily between Macon, GA and the Florida state line. I’m looking forward to talking with drivers about their concerns, how their business is doing and generally just have some good visits.
Perhaps we’ll meet up sometime out on the road this week.
Texas farmers had 13,000 acres of sweet onions planted two years ago. This year there are only 8,000 acres of onions. So when I say there will be average onion shipments out of the Lower Rio Grande Valley this spring – it’s average for the number of onions that were planted.
The Texas 1015 sweet onion, which has suffered from drought and poor markets in recents years, is now be shipped. The first loadings got under way about two weeks ago, but volume shipments are just getting started. Peak shipments should occur aroun April, although loadings will continue until around the Fourth of July.
Blueberry Shipments
Florida blueberry shipments got underway in small volume in late February, around two weeks earlier than usual. Loadings should continue until around Memorial Day in late May. As with many other spring produce items, shipments then originate from more northern areas.
Georgia blueberry shipments typically get underway in late April, followed by North Carolina in the middle of May.
The leading Southeastern states of Florida, Georgia and North Carolina typically average about 27 percent of the USA and Canada’s fresh blueberry volume, amounting to about 136 million pounds.
Georgia loads more blues than any other Southern state. It had 69 million pounds of blueberries in 2012, up 13 million pounds from 2010.
SALINAS, CA –– TransFresh Corporation, a wholly-owned subsidiary of Chiquita Brands International, March 22nd announced that a recently published study conducted by the University of California at Davis (UC Davis) and the University of Florida (UFL) found that transporting strawberries in the sealed TransFresh Tectrol® pallet cover system, in which CO2 concentrations were elevated at 11 to 16 percent, was most effective in complementing current low temperature management practices to reduce decay and maintain fruit quality. The study further concluded that after a two-day shelf life, fruit from the Tectrol pallets achieved significantly less decay – from three to seven percent – than the other systems evaluated.
The independent study was conducted as part of an ongoing research initiative by two leading academic postharvest departments, one at the University of California and the other at the University of Florida, under the United States Department of Agriculture (USDA) Specialty Crops Project designed to increase the consumption of specialty crops, such as strawberries, through enhanced quality and safety.
According to Beth Mitcham, Ph.D., UC Davis project leader, the overall goal of the USDA research project is to improve human health and strengthen the economic viability of the U.S. produce industry by developing exceptionally tasty and safe fruit.
The study, Comparison of Pallet Cover Systems to Maintain Strawberry Fruit Quality During Transport, evaluated the efficacy of multiple different proprietary plastic pallet cover systems to maintain strawberry fruit quality during commercial shipment. The TransFresh Tectrol Modified Atmosphere system was one of those assessed. Non-covered pallets served as the control for the study. During the comparison, the different covers were placed over palletized California-harvested strawberries packed in vented plastic clamshells and cooled according to industry standards. CO2 was injected into the sealed Tectrol pallet bag system, according to TransFresh specifications. Pallet cover systems other than Tectrol remained open at the base and without the injection of pressurized CO2 prior to shipment. Six separate shipments of palletized fruit were transported to distribution centers in either Florida or Georgia, with transit times ranging from slightly over two to almost five days. After arrival, berry clamshell samples from each treatment were retrieved and evaluated for arrival quality. Samples were then held for an added two days at 68º F. to mimic post arrival distribution, after which, quality attributes were again assessed.
Researchers concluded that “transporting fruit in the sealed Tectrol pallet cover system, in which CO2 concentrations were elevated at 11 to 16 percent, was most effective as it also significantly reduced decay development during subsequent simulated retail display.
Researchers pointed that although their data highlight some statistically significant advantages of using strawberry pallet covers in combination with low temperature management, a cost-benefit analysis is recommended to reveal the true commercial value of each system.”
Rich Macleod, vice president pallet division, TransFresh North America, concurred.
“The research conclusion certainly bodes well for the advantages offered by the closed Tectrol pallet bag system, in which optimal CO2 levels are consistently maintained. We encourage key stakeholders to conduct a cost-benefit analysis suited to their own individual business models,” he stated. To assist in that endeavor, TransFresh has developed an online calculator available at www.Tectrol-Calculator.com. Additionally, a full copy of the study, published in HortTechnology, August 2012, is available from the TransFresh Resource Library accessible at www.TransFresh.com.
About Chiquita Brands International, Inc.
Chiquita Brands (NYSE: CQB) is a leading international marketer and distributor of nutritious, high-quality fresh and value-added food products – from energy-rich bananas, blends of convenient green salads, other fruits to healthy snacking products. The company markets its healthy, fresh products under the Chiquita® and Fresh Express® premium brands and other related trademarks. With annual revenues of more than $3 billion, Chiquita employs approximately 20,000 people and has operations in approximately 70 countries worldwide. For more information, please visit http://www.chiquita.com/.
About TransFRESH®
TransFRESH Corporation, a wholly owned subsidiary of Chiquita Brands (NYSE: CQB), is a pioneering and established global company, with nearly 50 years of experience in perishables transport. Tectrol® is the trademarked brand name for the TransFRESH® family of proprietary modified and controlled atmosphere systems and processes developed and owned by TransFRESH®. The Tectrol® Service Network™ services, markets and supports the Tectrol Pallet Systems operations and technologies. Since inception, TransFRESH’s innovations in packaging, equipment and sealing processes have established Tectrol® as the industry standard.
Between the railroads and government Paul Kazan sees a possible conspiracy against the trucking industry, and the effects on the transportation of fresh produce.
He is celebrating his 30th anniversary in the founding of Target Interstate Systems Inc., a Bronx, NY- based truck broker, although the celebration would be even better if so many “arrows” from many directions weren’t being shot at trucking. Whether it’s the rails, or intrusive federal or state rules and regulations, or the public, the challenges for truckers seems to worsen.
“The (trucking) industry is on the defense. It is under constant attack from the rail industry, the public sector and it is kind of a lightning rod for all the ills of pollution and unsafe driving,” Paul contends. “It has the image of being environmentally unfriendly.”
Paul observes the railroads are getting better at doing different things, whether it is logistics, or lobbying for issues which adversely affect trucking, such as hours of service.
While the trains are moving for loads of certain types of produce, he notes they are incapable and not interested in handling the LTL type loads that are becoming more prevalent.
“The rails are not making four or five pickups and taking two days to load. That’s the trucker’s lane. For those truckers that want just one pick up, one drop, you are not going to get the money you want,” he says.
Paul points out there are places such as Michigan, the Midwest and the southeast where trucking really excels because the rails cannot compete.
He points to all the government created red tape in California with its CARB (California Air Resources Board), the federal CSA-2010 rules, plus attempts to limit the hours truckers can legally drive.
“If I wanted to be a conspirator, I’d say there is a very strong rail lobby out there trying to slow trucking down, while they pick up the speed of the trains, and increasing the cost of trucking,” he states.
Because of the perishable nature of produce, Paul says hauling fresh fruits and vegetables requires “running on the edge of legal limits.” For example, he cites the California CARB rules in which his company as well as everyone else involved in the transaction of a load, must be in compliance or possibly face stiff penalties.
“From California, we expect a driver to make a New York delivery in four days, five days at the most. They (government) don’t care about the fact a truck arrives at a (loading) dock and has to wait four hours to get loaded. He’s not off duty then. He’s on duty. Nobody considers you arrive at Hunts Point and it takes 10 hours to get unloaded. That is on duty for the trucker. I find that the hours of service rules are killing the drivers,” he states.
Paul says all these challenges faced by truckers are only contributing to a driver shortage. It is estimated the trucking industry will be short 200,000 drivers this year alone.
Because of the poor economy, Paul notes there are fewer carriers. When the economic conditions improve he sees a real scarcity in qualified drivers. Between having less equipment industry wide and not enough drivers, he sees rates increasing when the economy improves.
At the same time, Paul notes owner operators are finding it difficult to get financing for new equipment.
“We are all waiting for the economy to rebound so we can do things. It’s not easy,” Paul observes. “The majority (at least 75 percent) of people we work with own two to five trucks and generally the owner is driving one of them. Our pay practices are immediate (upon delivery and submission of paperwork). We wire the money to our carriers. Most of our guys (truckers) do take advances and we charge a modest fee. While profit may be king, cash flow rules,” Paul says.
With headquarters located on the Hunts Point Wholesale Produce Market, Target arranges about 15,000 loads of produce and dry freight annually. He notes the dry freight side typically pays less, is slower paying and does not provide advances. As a result, he notes the produce loads are helping finance the return trips.
On a side note, Paul made an interesting observation regarding earlier this year when there was the threat of a longshoreman’s strike on the East Coast.
“I was very much looking forward to a strike,” he states. “That would be the biggest shot in the arm you could possibly imagine. The big box stores were already making diversions (of imported products) from the East Coast to the West Coast in anticipation of the strike. That would have meant the Home Depots, the Wal Marts would have had to truck that merchandise from the West to East Coast.”
Desert vegetables on the Arizona desert around Yuma must look like they’ve
been growing in war zone. Temperatures a week ago approaching triple digits for several days resulted in some dehydration, and wilting with items ranging from leaf lettuce to broccoli and cauliflower. and leafy items. If you plan to load any Iceberg or romaine look for heat related damage such as tip burn, internal burn and even the outer leaves with sunscald.
The hot weather also is causing veggies to mature faster, moving up the schedule for harvesting. Damage assessements continue.
Desert vegetable already were having problems with blisters and epidermal peel due to earlier freezing weather.
Citrus Loads
California citrus shipments are not being significantly affected from that mid January freeze as only minimal damage was reported. However, valenca shipments from the Central San Joaquin Valley will be down from a year ago, primarily due to the variety gradually being replaced with newer varieties with higher yields.
Tje state expects this year’s valencia orange shipments to hit about 25 million cartons, down from last year’s total of 27 million boxes.
Meanwhile, strawberry shipments from Orange County and Ventura County contine to build towards peak shipments in early April.
California citrus – grossing about $6200 to New York City.
Yuma vegetables – about $4800 to Atlanta.
Unless you been on another planet lately, or totally ignoring the news, there was a lot of BS and out right lies from the adminstration and Congress regarding the so-called sequester and how bad Americans would be suffering if a financial solution to the budget wasn’t reached.
Industries from coast-to-coast who are on the government dole, and getting handouts, are crying over the mandated sequester cuts.
For example, everyone from, from milk producers to craft beer brewers,cattle, fish, rice and potato growers to folks who received government issued nut and vegetable forecasts and estimates. The apple forecast is another item, which has a crop estimate set to be released in August for the 2013 season.
Cutbacks also are expected in border service by the U.S. Customs and Border Patrol in coming weeks.
The sequestration cuts were put in motion during the 2011 debt ceiling negotiations. The plan was get lawmakers off their butts and find some common ground over the federal budget, instead on continually delaying it until a later date.
Here’s a novel idea. How about the individual industries who are losing the government funded reports and estimates, pay for it themselves? Actually, the USDA recently suggested as much.
About $1.9 billion in USDA funding was eliminated by the automatic cuts, known as sequestration, which took effect on March 1.
The trucking industry was degregulated more than three decades ago. It is truely operating in a free market, competitive system. Instead of government hand outs, trucking has only received more regulations and taxes from the government.
But the pressure is already building on Congress to cave.
In 2012 California strawberry growers had record shipments and there has been an acreage increase of about 6.5 percent this year.
In the first half of April California strawberry loadings will really crank up as Ventura County hits peak movement. This is followed by a steady progression toward peak production in Santa Maria and then Watsonville. Heavy shipments are expected through the summer and into the fall.
Californa expects to have 40,192 acres of strawberries this year, which is over 2,400 acres above 2012.
Orange County’s fall-planted acreage for winter, spring and summer production is down this year nearly 7 percent at 1,348 acres, representing just 3.8 percent of the state total.
The Salinas/Watsonville district ships over 41 percent of the state’s strawberries, followed by Oxnard at nearly 30 percent and Santa Maria at 26 percent.
Kiwi shipments
California kiwifruit shipments are winding down and will be finished by late March or early April. The first Chilean fruit should arrive in the first or second week of April. Some of those arrivals will be at the Port of Long Beach.
California strawberries – grossing about $3700 to Dallas.
That Florida freeze in early March hit some the state’s sweet corn, green bean and blueberry crops, and will result in fewer loading opportunities in the weeks ahead, although not as seriously as first feared. Actually, Florida is primed for a pretty good spring hauling season.
On March 4 temperatures plunged into the mid-20s as far south as Belle Glade, FL, which is located between the eastern edge of Lake Okeechobee and West Palm Beach, FL.
Initial concerns were the freeze was a lot worse, but not it now appears that shipments of the state’s sweet corn crop will be down by less than 20 percent, although this is still significant.
Blueberries in Northern Florida sustained mild-to-moderate damage to blueberries while central Florida were virtually unaffected. Blueberry loadings have been occurring now for several weeks.
Perhaps the hardist hit of Florida vegetables were green beans. On the positive side, replantings will make loadings availabe by mid-April, at least in light volume. Still over all shipments will be less due to the initial loss. somewhat diminished.
Michigan Apple Update
Michigan apple shipments were virtually demolished in 2012 following a most untimely freeze. The tree has come out of dormancy four-plus weeks early and and were clobbered by nearly two dozen frosts.
Apple shipments were reduced by 90 percent. As a result, Michigan growers and shippers are pretty edgy this time around. So far, so good with cold weather in recent weeks and it should continue for another week or more before spring weather starts arriving. This it is a matter of praying for no more freezes.
Loading opportunities for more than doubled over the past decade for sweet potatoes, although like its cousin the potato, may be the best paying produce item. However, it’s also less risky to haul since it is less perishable.
North Carolina remains the number one shipper of sweet potatoes. The USDA reports it produced 1.24 billion pounds in 2012. California was second at 617 million pounds. Those two states , along with Louisiana and Mississippi, ship over 90 percent of the USA’s sweet potatoes.
In total American truckers will haul 2.65 billion pounds of sweet potatoes from the 2012 crop. This compares with 1.28 billion 10 years ago.
Total acreage in the U.S. in 2011 — the last year for which that statistic is available — was 130,300 acres, up from 82,300 in 2002.
California Strawberry Shipments
California strawberry shippers have been loading a lot of fruit leading up to Easter (March 31). Strawberry loadings will continue heavy from Southern California right on through Mother’s Day (May 12), when Oxnard starts a seasonal decline.
At some point in May the Watsonville/Salinas district should have really crank up with significan shipments, about the same time various types of vegetables really get going.
As of March 9, California strawberry shippers had moved 9.07 million trays, down from 11.8 million trays for the same period in 2012.
The Oxnard district is expected to hit its peak right after Easter.
(Photo – Love these old buildings scattered throughout rural Georgia)
I’ve already been in the Vidalia sweet onion shipping district in Southeastern Georgia and you can expect loading opportunities to be pretty normal this year – if diease doesn’t start showing up in the crop. It’s really too early to tell. If problems do arise it probably won’t be realized, at least to its full extent, until the harvest begins.
Harvesting should get underway around April 10 or so. There is about 12,600 acres of onions planted, which is pretty normal. The big question surrounds about 12 inches of rain the area got over a two-week period the first half March. We’ll just need to watch this situation closely to see if any quality problems come out of it.
This week I’m spending a few days in Central and South Georgia visiting with vegetable shippers as well as peach shippers. Checking with these guys to see how loading opportunities should be panning out for you this spring and summer.
At the same time I’m going to be scoping out several of the truck stops scattered along Interstate 95, primarily between Macon, GA and the Florida state line. I’m looking forward to talking with drivers about their concerns, how their business is doing and generally just have some good visits.
Perhaps we’ll meet up sometime out on the road this week.
Texas farmers had 13,000 acres of sweet onions planted two years ago. This year there are only 8,000 acres of onions. So when I say there will be average onion shipments out of the Lower Rio Grande Valley this spring – it’s average for the number of onions that were planted.
The Texas 1015 sweet onion, which has suffered from drought and poor markets in recents years, is now be shipped. The first loadings got under way about two weeks ago, but volume shipments are just getting started. Peak shipments should occur aroun April, although loadings will continue until around the Fourth of July.
Blueberry Shipments
Florida blueberry shipments got underway in small volume in late February, around two weeks earlier than usual. Loadings should continue until around Memorial Day in late May. As with many other spring produce items, shipments then originate from more northern areas.
Georgia blueberry shipments typically get underway in late April, followed by North Carolina in the middle of May.
The leading Southeastern states of Florida, Georgia and North Carolina typically average about 27 percent of the USA and Canada’s fresh blueberry volume, amounting to about 136 million pounds.
Georgia loads more blues than any other Southern state. It had 69 million pounds of blueberries in 2012, up 13 million pounds from 2010.
SALINAS, CA –– TransFresh Corporation, a wholly-owned subsidiary of Chiquita Brands International, March 22nd announced that a recently published study conducted by the University of California at Davis (UC Davis) and the University of Florida (UFL) found that transporting strawberries in the sealed TransFresh Tectrol® pallet cover system, in which CO2 concentrations were elevated at 11 to 16 percent, was most effective in complementing current low temperature management practices to reduce decay and maintain fruit quality. The study further concluded that after a two-day shelf life, fruit from the Tectrol pallets achieved significantly less decay – from three to seven percent – than the other systems evaluated.
The independent study was conducted as part of an ongoing research initiative by two leading academic postharvest departments, one at the University of California and the other at the University of Florida, under the United States Department of Agriculture (USDA) Specialty Crops Project designed to increase the consumption of specialty crops, such as strawberries, through enhanced quality and safety.
According to Beth Mitcham, Ph.D., UC Davis project leader, the overall goal of the USDA research project is to improve human health and strengthen the economic viability of the U.S. produce industry by developing exceptionally tasty and safe fruit.
The study, Comparison of Pallet Cover Systems to Maintain Strawberry Fruit Quality During Transport, evaluated the efficacy of multiple different proprietary plastic pallet cover systems to maintain strawberry fruit quality during commercial shipment. The TransFresh Tectrol Modified Atmosphere system was one of those assessed. Non-covered pallets served as the control for the study. During the comparison, the different covers were placed over palletized California-harvested strawberries packed in vented plastic clamshells and cooled according to industry standards. CO2 was injected into the sealed Tectrol pallet bag system, according to TransFresh specifications. Pallet cover systems other than Tectrol remained open at the base and without the injection of pressurized CO2 prior to shipment. Six separate shipments of palletized fruit were transported to distribution centers in either Florida or Georgia, with transit times ranging from slightly over two to almost five days. After arrival, berry clamshell samples from each treatment were retrieved and evaluated for arrival quality. Samples were then held for an added two days at 68º F. to mimic post arrival distribution, after which, quality attributes were again assessed.
Researchers concluded that “transporting fruit in the sealed Tectrol pallet cover system, in which CO2 concentrations were elevated at 11 to 16 percent, was most effective as it also significantly reduced decay development during subsequent simulated retail display.
Researchers pointed that although their data highlight some statistically significant advantages of using strawberry pallet covers in combination with low temperature management, a cost-benefit analysis is recommended to reveal the true commercial value of each system.”
Rich Macleod, vice president pallet division, TransFresh North America, concurred.
“The research conclusion certainly bodes well for the advantages offered by the closed Tectrol pallet bag system, in which optimal CO2 levels are consistently maintained. We encourage key stakeholders to conduct a cost-benefit analysis suited to their own individual business models,” he stated. To assist in that endeavor, TransFresh has developed an online calculator available at www.Tectrol-Calculator.com. Additionally, a full copy of the study, published in HortTechnology, August 2012, is available from the TransFresh Resource Library accessible at www.TransFresh.com.
About Chiquita Brands International, Inc.
Chiquita Brands (NYSE: CQB) is a leading international marketer and distributor of nutritious, high-quality fresh and value-added food products – from energy-rich bananas, blends of convenient green salads, other fruits to healthy snacking products. The company markets its healthy, fresh products under the Chiquita® and Fresh Express® premium brands and other related trademarks. With annual revenues of more than $3 billion, Chiquita employs approximately 20,000 people and has operations in approximately 70 countries worldwide. For more information, please visit http://www.chiquita.com/.
About TransFRESH®
TransFRESH Corporation, a wholly owned subsidiary of Chiquita Brands (NYSE: CQB), is a pioneering and established global company, with nearly 50 years of experience in perishables transport. Tectrol® is the trademarked brand name for the TransFRESH® family of proprietary modified and controlled atmosphere systems and processes developed and owned by TransFRESH®. The Tectrol® Service Network™ services, markets and supports the Tectrol Pallet Systems operations and technologies. Since inception, TransFRESH’s innovations in packaging, equipment and sealing processes have established Tectrol® as the industry standard.
Between the railroads and government Paul Kazan sees a possible conspiracy against the trucking industry, and the effects on the transportation of fresh produce.
He is celebrating his 30th anniversary in the founding of Target Interstate Systems Inc., a Bronx, NY- based truck broker, although the celebration would be even better if so many “arrows” from many directions weren’t being shot at trucking. Whether it’s the rails, or intrusive federal or state rules and regulations, or the public, the challenges for truckers seems to worsen.
“The (trucking) industry is on the defense. It is under constant attack from the rail industry, the public sector and it is kind of a lightning rod for all the ills of pollution and unsafe driving,” Paul contends. “It has the image of being environmentally unfriendly.”
Paul observes the railroads are getting better at doing different things, whether it is logistics, or lobbying for issues which adversely affect trucking, such as hours of service.
While the trains are moving for loads of certain types of produce, he notes they are incapable and not interested in handling the LTL type loads that are becoming more prevalent.
“The rails are not making four or five pickups and taking two days to load. That’s the trucker’s lane. For those truckers that want just one pick up, one drop, you are not going to get the money you want,” he says.
Paul points out there are places such as Michigan, the Midwest and the southeast where trucking really excels because the rails cannot compete.
He points to all the government created red tape in California with its CARB (California Air Resources Board), the federal CSA-2010 rules, plus attempts to limit the hours truckers can legally drive.
“If I wanted to be a conspirator, I’d say there is a very strong rail lobby out there trying to slow trucking down, while they pick up the speed of the trains, and increasing the cost of trucking,” he states.
Because of the perishable nature of produce, Paul says hauling fresh fruits and vegetables requires “running on the edge of legal limits.” For example, he cites the California CARB rules in which his company as well as everyone else involved in the transaction of a load, must be in compliance or possibly face stiff penalties.
“From California, we expect a driver to make a New York delivery in four days, five days at the most. They (government) don’t care about the fact a truck arrives at a (loading) dock and has to wait four hours to get loaded. He’s not off duty then. He’s on duty. Nobody considers you arrive at Hunts Point and it takes 10 hours to get unloaded. That is on duty for the trucker. I find that the hours of service rules are killing the drivers,” he states.
Paul says all these challenges faced by truckers are only contributing to a driver shortage. It is estimated the trucking industry will be short 200,000 drivers this year alone.
Because of the poor economy, Paul notes there are fewer carriers. When the economic conditions improve he sees a real scarcity in qualified drivers. Between having less equipment industry wide and not enough drivers, he sees rates increasing when the economy improves.
At the same time, Paul notes owner operators are finding it difficult to get financing for new equipment.
“We are all waiting for the economy to rebound so we can do things. It’s not easy,” Paul observes. “The majority (at least 75 percent) of people we work with own two to five trucks and generally the owner is driving one of them. Our pay practices are immediate (upon delivery and submission of paperwork). We wire the money to our carriers. Most of our guys (truckers) do take advances and we charge a modest fee. While profit may be king, cash flow rules,” Paul says.
With headquarters located on the Hunts Point Wholesale Produce Market, Target arranges about 15,000 loads of produce and dry freight annually. He notes the dry freight side typically pays less, is slower paying and does not provide advances. As a result, he notes the produce loads are helping finance the return trips.
On a side note, Paul made an interesting observation regarding earlier this year when there was the threat of a longshoreman’s strike on the East Coast.
“I was very much looking forward to a strike,” he states. “That would be the biggest shot in the arm you could possibly imagine. The big box stores were already making diversions (of imported products) from the East Coast to the West Coast in anticipation of the strike. That would have meant the Home Depots, the Wal Marts would have had to truck that merchandise from the West to East Coast.”
Desert vegetables on the Arizona desert around Yuma must look like they’ve
been growing in war zone. Temperatures a week ago approaching triple digits for several days resulted in some dehydration, and wilting with items ranging from leaf lettuce to broccoli and cauliflower. and leafy items. If you plan to load any Iceberg or romaine look for heat related damage such as tip burn, internal burn and even the outer leaves with sunscald.
The hot weather also is causing veggies to mature faster, moving up the schedule for harvesting. Damage assessements continue.
Desert vegetable already were having problems with blisters and epidermal peel due to earlier freezing weather.
Citrus Loads
California citrus shipments are not being significantly affected from that mid January freeze as only minimal damage was reported. However, valenca shipments from the Central San Joaquin Valley will be down from a year ago, primarily due to the variety gradually being replaced with newer varieties with higher yields.
Tje state expects this year’s valencia orange shipments to hit about 25 million cartons, down from last year’s total of 27 million boxes.
Meanwhile, strawberry shipments from Orange County and Ventura County contine to build towards peak shipments in early April.
California citrus – grossing about $6200 to New York City.
Yuma vegetables – about $4800 to Atlanta.
Unless you been on another planet lately, or totally ignoring the news, there was a lot of BS and out right lies from the adminstration and Congress regarding the so-called sequester and how bad Americans would be suffering if a financial solution to the budget wasn’t reached.
Industries from coast-to-coast who are on the government dole, and getting handouts, are crying over the mandated sequester cuts.
For example, everyone from, from milk producers to craft beer brewers,cattle, fish, rice and potato growers to folks who received government issued nut and vegetable forecasts and estimates. The apple forecast is another item, which has a crop estimate set to be released in August for the 2013 season.
Cutbacks also are expected in border service by the U.S. Customs and Border Patrol in coming weeks.
The sequestration cuts were put in motion during the 2011 debt ceiling negotiations. The plan was get lawmakers off their butts and find some common ground over the federal budget, instead on continually delaying it until a later date.
Here’s a novel idea. How about the individual industries who are losing the government funded reports and estimates, pay for it themselves? Actually, the USDA recently suggested as much.
About $1.9 billion in USDA funding was eliminated by the automatic cuts, known as sequestration, which took effect on March 1.
The trucking industry was degregulated more than three decades ago. It is truely operating in a free market, competitive system. Instead of government hand outs, trucking has only received more regulations and taxes from the government.
But the pressure is already building on Congress to cave.
In 2012 California strawberry growers had record shipments and there has been an acreage increase of about 6.5 percent this year.
In the first half of April California strawberry loadings will really crank up as Ventura County hits peak movement. This is followed by a steady progression toward peak production in Santa Maria and then Watsonville. Heavy shipments are expected through the summer and into the fall.
Californa expects to have 40,192 acres of strawberries this year, which is over 2,400 acres above 2012.
Orange County’s fall-planted acreage for winter, spring and summer production is down this year nearly 7 percent at 1,348 acres, representing just 3.8 percent of the state total.
The Salinas/Watsonville district ships over 41 percent of the state’s strawberries, followed by Oxnard at nearly 30 percent and Santa Maria at 26 percent.
Kiwi shipments
California kiwifruit shipments are winding down and will be finished by late March or early April. The first Chilean fruit should arrive in the first or second week of April. Some of those arrivals will be at the Port of Long Beach.
California strawberries – grossing about $3700 to Dallas.

