Author Archive
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.
The Imperial Valley and the Yuma district of Arizona have had cold, wind and freezes interminent with heat. Now it has got even hotter. Over the past weekend temperatures soared into the upper 90s.
When loading watch for heat related issues like scalding and internal burn. Additionally, keep an eye out for some remaining freeze related issues like blister and epidermal peel.
Just be sure you check closely what is being loaded into your trailer. The lettuce, broccoli and cauliflower have been through a lot this winter. If your receiver knows what’s being bought before it’s loaded, it could save you a claim, or rejected load.
Apple shipping Update
Across the USA there remains around 63 million bushels of fresh apples to be shipped, 13 percent more than at this time last year.
To put in even more perspective, this is 15 percent more fruit remaining to be hauled than the five-year average.
Nearly all of the remaining apples, to no one’s surprise, is in Washington state’s Yakima and Wenatchee valleys. Almost 61 million of those bushels are in Washington storages. Another 814,000 are in New York, 561,000 in Pennsylvania and 421,000 in Oregon.
By variety, there were 23.9 million bushels of red delicious still in storage, up from 21.5 million last year.
Fuji holdings rose from 5.8 million to 9.8 million bushels, gala from 8.5 million to 9.6 million bushels and golden delicious from 6.5 million to 7.4 million bushels.
Granny smith was the only majority variety whose holdings declined from 2012. Granny supplies fell from 6.61 million to 6.56 million bushels.
California Grape re-cap
California table grape shipments hit a record 101.5 million boxes between May 2012 and January 2013. This was the first time loadings topped 100 million, 19-pound cartons.
Washington state apples – grossing about $5700 to New York City.
How much Florida spring sweet corn and bean shipments will be affected by that March 4 freeze still remains unclear as everyone waits for farmers to provide some accurate estimates. It seems, however, they are starting to play down a little, how serious the damage was.
However, there still was considerable damage. How much, probably won’t really be known until they start harvest, packing and shipping. Reports from Palm Beach County, which ships most of the state’s spring corn, have down played the freeze from earlier reports saying losses will be less than 20 percent instead of 25 percent.
Bean Shipments
South Florida bean shipments have been delayed by the cold and wet weather and loadings are not expected until mid-April. This will push the Florida bean season much closer to the Georgia season, which normally follows right on the heals of Florida. High volume normally begins in mid-March for Belle Glade beans.
Citrus
Each month with the updated Florida citrus shipping forecast, the numbers continue to drop. The USDA’s March report shows this season’s valencia volume will decline by 3 million cartons, to 72 million cartons. February’s forecast indicated a 1 million carton decline.
While non-valencia oranges, including midseasons, increased by 1 million cartons, the valencia decline lowers the state’s 2013 orange crop to 139 million cartons. That’s down 5 percent from the February 141 million box estimate.
Midseason fruit generally harvest through March while late-season valencias begin production by March and harvest through early June.
Florida grapefruit shipments declined by another 1 million equivalent cartons, from 18 million cartons to the recent report’s 17 million cartons. Colored and white grapefruit production fell by 500,000 respective cartons.
Tangerines and tangelos, the state’s specialty citrus fruit, remain unchanged at 4.7 million boxes.
Florida’s predicted 160.8 million box total citrus crop is lower than the state’s recent five-year average of 179 million cartons. The state produced more than 200 million cartons in the late 1990s and early 2000s.
South Florida produce – grossing about $2700 to New York City.
In transportation, as well as fresh produce circuits, Doug Stoiber is known for his keen insight into the state of the trucking industry. As vice president of produce transportation operations for L&M Transportation Services, Inc. based in Raleigh, NC, Doug recently shared some insights into how truckers are doing, made some obervations on increasing government regulations and chided political mauverings from politicians.
LMTS does $100 million annually in business and last year arranged 28,000 loads, of which about 70 percent were fresh fruits and vegetables.
Concerning the financial health of the trucking industry, Doug describes it as just “okay.” Although he sees freight volumes picking up some, the economy is still struggling to get much momentum.
“The transportation industry lives and dies with the construction industry,” he observes. “That is what keeps a whole lot of trucks moving. When they (drivers) deliver building materials, they (return) load with produce, nursery and all kinds of things.”
Doug is observing modest increases in the amount of westbound freight involving construction materials and some Asian imports. However, he continues to see depressed rates on westbound freight, in part because eastbound produce loads pay so much more.
About 30 percent of LMTS’s business is with dry freight loads and LTL.
“On the produce (transportation) side of our business, the owner operators and the small fleets are always going to be the mainstay of this business,” Doug relates, “because of the the way crops move around (seasonally) and the unique nature of fresh produce. The business model of owner operators are best suited to move that kind of freight.”
As for its dry freight and LTL business, LMTS relies more heavily on larger fleet operations and contract carriers.
He notes it was in 2008 when the nation’s economy collasped. This resulted in a downsizing of the trucking industry as many trucking companies were forced out of the business. It was the strong carriers that were able to withstand the economic downturn and it is these same operations that will benefit as more freight becomes available and shippers compete for the services of the remaining trucking companies.
While this will mean some freight rate increases, Doug cautions there is a down side.
“(The rate increases) will be offset by the higher costs due to more regulations. The states and the federal government are trying to increase taxes on people who buy fuel, people who use highways and on people who work in the state of California.”
He says two of the biggest concerns with trucking regulations relate to hours of service and CARB (California Air Resources Board).
The federal government is set to finalize its rules on hour of service relating to reset time and mandatory rest periods. He sees this translating into less time trucking per driver, which will require more drivers to be hired, resulting in higher costs of operation.
As for new CARB regulations that became effective with the New Year, he points out all parties involved in the transportation can be fined if there is a violation.
For example, if a carrier misrepresents itself to LMTS and is fined for not having a refrigerated unit that is 2007 or newer, the transportation broker can be fined, as well as the carrier, shipper and receiver.
Highways
When it comes to infrastructure, Doug doesn’t hear a lot of complaints from drivers. However, when he reads the newspaper, people are constantly complaining about the poor state of the highways and bridges.
“I don’t know whether they (politicians) are seeing something we’re not, or whether they are just legislating for more taxes, because they are working the public to try and create a situation that is bigger than it really is. I think the primary concern with infrastructure is the states going to toll roads,” Doug states.
For example, he notes the Pennsylvania Turnpike has raised tolls and since then commercial vehicle traffic has declined. This is because carriers are taking other routes to avoid the turnpike and save money. This results in freight not moving as fast or efficiently as it should.
Greens continue out of southern Georgia, while southeastern Georgia is shipping carrots. This same area also will see Vidalia onion loadings become available around April 10 – 15th, although volume will be light at the start.
Heaviest Vidalia sweet onion shipments will occur during May and June. Total volume will probably be down some from last season.
Sweet onion shipments are already under way from the Lower Rio Grande Valley of Texas, which typically starts a little earlier than Vidalia each year. Texas onion shipments have had it pretty rough in recent years. In 2012 there was a 30 percent reduction in acreage. This year another 20 percent has been taken out of production. Texas has been shipping the 1015 sweet onion since the early 1980s. What’s left of the crop after the 50 percent acreage reduction over the past two years, is reported to have good quality…..South Texas also is shipping citrus and vegetable, as well as fresh produce crossing the border from Mexico.
Blueberries
Chilean blueberry imports continue to arrive in the USA and will be available into mid April. California blueberries from coastal areas are now being shipped in small volumes…..Strawberries continue from Southern Californa, along with citrus.
Blueberries apparently dodged a direct weather bullet in early March that damaged some fruit in the northern part of the state and nipped at the edges of central Florida fields. Florida began shipping blueberries in late February. Georgia shippers following right after the Sunshine State.
Southern California berries, citrus – grossing about $4000 to Chicago.
South Texas onion, vegetables – about $2600 to Atlanta.
South Georgia greens – $2400 to New York City.
The USDA recently announced regulations placing limits on snack foods sold to children during the school day to promote healthy eating.
The Healthy, Hunger-Free Kids Act of 2010 requires the USDA establishing nutrition standards for all foods sold in schools, besides the federally supported school meal programs. The Smart Snacks in School proposed rule requires all foods sold in schools meet the following criteria:
“Be either a fruit, a vegetable, a dairy product, a protein food, a ‘whole-grain rich’ grain product (50 percent or more whole grains by weight or have whole grains as the first ingredient), or a combination food that contains at least a quarter cup of fruit or vegetable; or contain 10 percent of the daily value of a nutrient cited as a public health concern in the 2010 Dietary Guidelines for Americans (calcium, potassium, vitamin D, or fiber).”
The 160-page proposal sets limits for total fat, saturated fat, sodium, total sugar levels and calories in foods sold à la carte in school stores, snack bars or vending machines. Fruits and vegetables packed in juice or extra-light syrup and certain yogurts are exempt from the sugar limits in the proposal. It also sets new standards for beverages sold on campuses.
“Providing healthy options throughout school cafeterias, vending machines, and snack bars will complement the gains made with the new, healthy standards for school breakfast and lunch so the healthy choice is the easy choice for our kids,” Agriculture Secretary Tom Vilsack said in a statement.
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.
The Imperial Valley and the Yuma district of Arizona have had cold, wind and freezes interminent with heat. Now it has got even hotter. Over the past weekend temperatures soared into the upper 90s.
When loading watch for heat related issues like scalding and internal burn. Additionally, keep an eye out for some remaining freeze related issues like blister and epidermal peel.
Just be sure you check closely what is being loaded into your trailer. The lettuce, broccoli and cauliflower have been through a lot this winter. If your receiver knows what’s being bought before it’s loaded, it could save you a claim, or rejected load.
Apple shipping Update
Across the USA there remains around 63 million bushels of fresh apples to be shipped, 13 percent more than at this time last year.
To put in even more perspective, this is 15 percent more fruit remaining to be hauled than the five-year average.
Nearly all of the remaining apples, to no one’s surprise, is in Washington state’s Yakima and Wenatchee valleys. Almost 61 million of those bushels are in Washington storages. Another 814,000 are in New York, 561,000 in Pennsylvania and 421,000 in Oregon.
By variety, there were 23.9 million bushels of red delicious still in storage, up from 21.5 million last year.
Fuji holdings rose from 5.8 million to 9.8 million bushels, gala from 8.5 million to 9.6 million bushels and golden delicious from 6.5 million to 7.4 million bushels.
Granny smith was the only majority variety whose holdings declined from 2012. Granny supplies fell from 6.61 million to 6.56 million bushels.
California Grape re-cap
California table grape shipments hit a record 101.5 million boxes between May 2012 and January 2013. This was the first time loadings topped 100 million, 19-pound cartons.
Washington state apples – grossing about $5700 to New York City.
How much Florida spring sweet corn and bean shipments will be affected by that March 4 freeze still remains unclear as everyone waits for farmers to provide some accurate estimates. It seems, however, they are starting to play down a little, how serious the damage was.
However, there still was considerable damage. How much, probably won’t really be known until they start harvest, packing and shipping. Reports from Palm Beach County, which ships most of the state’s spring corn, have down played the freeze from earlier reports saying losses will be less than 20 percent instead of 25 percent.
Bean Shipments
South Florida bean shipments have been delayed by the cold and wet weather and loadings are not expected until mid-April. This will push the Florida bean season much closer to the Georgia season, which normally follows right on the heals of Florida. High volume normally begins in mid-March for Belle Glade beans.
Citrus
Each month with the updated Florida citrus shipping forecast, the numbers continue to drop. The USDA’s March report shows this season’s valencia volume will decline by 3 million cartons, to 72 million cartons. February’s forecast indicated a 1 million carton decline.
While non-valencia oranges, including midseasons, increased by 1 million cartons, the valencia decline lowers the state’s 2013 orange crop to 139 million cartons. That’s down 5 percent from the February 141 million box estimate.
Midseason fruit generally harvest through March while late-season valencias begin production by March and harvest through early June.
Florida grapefruit shipments declined by another 1 million equivalent cartons, from 18 million cartons to the recent report’s 17 million cartons. Colored and white grapefruit production fell by 500,000 respective cartons.
Tangerines and tangelos, the state’s specialty citrus fruit, remain unchanged at 4.7 million boxes.
Florida’s predicted 160.8 million box total citrus crop is lower than the state’s recent five-year average of 179 million cartons. The state produced more than 200 million cartons in the late 1990s and early 2000s.
South Florida produce – grossing about $2700 to New York City.
In transportation, as well as fresh produce circuits, Doug Stoiber is known for his keen insight into the state of the trucking industry. As vice president of produce transportation operations for L&M Transportation Services, Inc. based in Raleigh, NC, Doug recently shared some insights into how truckers are doing, made some obervations on increasing government regulations and chided political mauverings from politicians.
LMTS does $100 million annually in business and last year arranged 28,000 loads, of which about 70 percent were fresh fruits and vegetables.
Concerning the financial health of the trucking industry, Doug describes it as just “okay.” Although he sees freight volumes picking up some, the economy is still struggling to get much momentum.
“The transportation industry lives and dies with the construction industry,” he observes. “That is what keeps a whole lot of trucks moving. When they (drivers) deliver building materials, they (return) load with produce, nursery and all kinds of things.”
Doug is observing modest increases in the amount of westbound freight involving construction materials and some Asian imports. However, he continues to see depressed rates on westbound freight, in part because eastbound produce loads pay so much more.
About 30 percent of LMTS’s business is with dry freight loads and LTL.
“On the produce (transportation) side of our business, the owner operators and the small fleets are always going to be the mainstay of this business,” Doug relates, “because of the the way crops move around (seasonally) and the unique nature of fresh produce. The business model of owner operators are best suited to move that kind of freight.”
As for its dry freight and LTL business, LMTS relies more heavily on larger fleet operations and contract carriers.
He notes it was in 2008 when the nation’s economy collasped. This resulted in a downsizing of the trucking industry as many trucking companies were forced out of the business. It was the strong carriers that were able to withstand the economic downturn and it is these same operations that will benefit as more freight becomes available and shippers compete for the services of the remaining trucking companies.
While this will mean some freight rate increases, Doug cautions there is a down side.
“(The rate increases) will be offset by the higher costs due to more regulations. The states and the federal government are trying to increase taxes on people who buy fuel, people who use highways and on people who work in the state of California.”
He says two of the biggest concerns with trucking regulations relate to hours of service and CARB (California Air Resources Board).
The federal government is set to finalize its rules on hour of service relating to reset time and mandatory rest periods. He sees this translating into less time trucking per driver, which will require more drivers to be hired, resulting in higher costs of operation.
As for new CARB regulations that became effective with the New Year, he points out all parties involved in the transportation can be fined if there is a violation.
For example, if a carrier misrepresents itself to LMTS and is fined for not having a refrigerated unit that is 2007 or newer, the transportation broker can be fined, as well as the carrier, shipper and receiver.
Highways
When it comes to infrastructure, Doug doesn’t hear a lot of complaints from drivers. However, when he reads the newspaper, people are constantly complaining about the poor state of the highways and bridges.
“I don’t know whether they (politicians) are seeing something we’re not, or whether they are just legislating for more taxes, because they are working the public to try and create a situation that is bigger than it really is. I think the primary concern with infrastructure is the states going to toll roads,” Doug states.
For example, he notes the Pennsylvania Turnpike has raised tolls and since then commercial vehicle traffic has declined. This is because carriers are taking other routes to avoid the turnpike and save money. This results in freight not moving as fast or efficiently as it should.
Greens continue out of southern Georgia, while southeastern Georgia is shipping carrots. This same area also will see Vidalia onion loadings become available around April 10 – 15th, although volume will be light at the start.
Heaviest Vidalia sweet onion shipments will occur during May and June. Total volume will probably be down some from last season.
Sweet onion shipments are already under way from the Lower Rio Grande Valley of Texas, which typically starts a little earlier than Vidalia each year. Texas onion shipments have had it pretty rough in recent years. In 2012 there was a 30 percent reduction in acreage. This year another 20 percent has been taken out of production. Texas has been shipping the 1015 sweet onion since the early 1980s. What’s left of the crop after the 50 percent acreage reduction over the past two years, is reported to have good quality…..South Texas also is shipping citrus and vegetable, as well as fresh produce crossing the border from Mexico.
Blueberries
Chilean blueberry imports continue to arrive in the USA and will be available into mid April. California blueberries from coastal areas are now being shipped in small volumes…..Strawberries continue from Southern Californa, along with citrus.
Blueberries apparently dodged a direct weather bullet in early March that damaged some fruit in the northern part of the state and nipped at the edges of central Florida fields. Florida began shipping blueberries in late February. Georgia shippers following right after the Sunshine State.
Southern California berries, citrus – grossing about $4000 to Chicago.
South Texas onion, vegetables – about $2600 to Atlanta.
South Georgia greens – $2400 to New York City.
The USDA recently announced regulations placing limits on snack foods sold to children during the school day to promote healthy eating.
The Healthy, Hunger-Free Kids Act of 2010 requires the USDA establishing nutrition standards for all foods sold in schools, besides the federally supported school meal programs. The Smart Snacks in School proposed rule requires all foods sold in schools meet the following criteria:
“Be either a fruit, a vegetable, a dairy product, a protein food, a ‘whole-grain rich’ grain product (50 percent or more whole grains by weight or have whole grains as the first ingredient), or a combination food that contains at least a quarter cup of fruit or vegetable; or contain 10 percent of the daily value of a nutrient cited as a public health concern in the 2010 Dietary Guidelines for Americans (calcium, potassium, vitamin D, or fiber).”
The 160-page proposal sets limits for total fat, saturated fat, sodium, total sugar levels and calories in foods sold à la carte in school stores, snack bars or vending machines. Fruits and vegetables packed in juice or extra-light syrup and certain yogurts are exempt from the sugar limits in the proposal. It also sets new standards for beverages sold on campuses.
“Providing healthy options throughout school cafeterias, vending machines, and snack bars will complement the gains made with the new, healthy standards for school breakfast and lunch so the healthy choice is the easy choice for our kids,” Agriculture Secretary Tom Vilsack said in a statement.