Author Archive

Apple Shipments to Remain Good

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There are four percent more apples remaining in storages around An Apple a Day...the United States to be shipped, compared to this time a year ago.  The vast majority of those apples will be shipped out of Washington state, although significant amounts will be loaded between now and late summer from Michigan and upstate New York.

The Yakima and Wenatchee Valleys in Washington are shipping about 2,500 truckload equivalents of apples weekly.  By comparison, the Western region of Michigan is moving around 175 truckloads per week.  New York state is averaging over 200 truckloads of apple shipments weekly, but keep in mind those numbers include loadings spread out from Eastern New York’s Hudson Valley to areas in the Central and Western portions of the state.

Light shipments are available from New England and the Applachian states.

Michigan apples are grossing – about $1000 to Chicago.

New York Hudson Valley – about $2400 to Atlanta.

Washington state – about $5800 to New York City.

 

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Nationwide Produce Shipments

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Supplies of trucks from major produce shipping areas around the country appear to be mostly adequate.

One of the most active shipping areas has Mexican produce crossing the border at Nogales, AZ.  Heavy volume of vine ripes, roma, plum and grape tomatoes are accounting for about 1,200 truckloads a week, and this doesn’t include many items ranging from melons and various kinds of vegetables.

From the San Luis Valley of Colorado, over 700 truckloads of potatoes are being shipped each week.

South Texas also has significant shipments of produce, whether talking about product moving from the Winter Garden District south of San Antonio (cabbage), or citrus and vegetables from the Lower Rio Grand Valley, not to mention good volume crossing the border from Mexico, ranging from onions and carrots to tropical fruits.

In the Northeast, potatoes loadings from the Presque Isle, ME area are exceeding 100 truckloads per week.  Maine potatoes are grossing about $1700 to New York City.

Lower Rio Grande Valley produce – about $1700 to Chicago.

San Luis Valley potatoes – about $2700 to Atlanta.

Nogales produce – about $1200 to Los Angeles.

 

 

 

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More New Truck Registrations Reported

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The Polk Commercial Vehicle Report for 2012 reports a 23 percent increase in the number of new commercial truck registrations for new commerical trucks compared to the previous year.  2011 registrations for Class 3 through Class 8 trucks was 461,000.  However, the record for new truck registrations occurred in 2006 when the total hit 800,000.

Between 1985 and 2011 there were 507,000 new truck registrations each year on average.

Class 8 trucks led the new commerical vehicle registrations in 2011 with a 38 percent increase, compared to 2010.

When you combine the new and used registrations, the figure exceeds 1.25 million, which is up 20 percent compared to 2010.

Will this mean fewer truck shortages in 2012 at major U.S. produce shipping areas?  This remains to be seen.  If trucking companies registering all these trucks have drivers to cover this equipment, sure it’s a no brainer.

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Hunts Point Firm Owes over $1.5 Million; Where is PACA for Truckers?

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The U.S. Department of Agriculture (USDA) has cited Ven-Co Produce Inc. of Bronx, N.Y., for failure to pay for produce.  Ven-Co is located on the Hunts Point Wholesale Terminal Market.

The company failed to pay $1,559,892.79 to 26 sellers for 210 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, the USDA and Ven-Co Produce Inc. have entered into a consent decision and Ven-Co Produce Inc. cannot operate in the produce industry until Feb. 15, 2014, at which time it may reapply for a PACA license.  It is not known whether Ven-Co owes money to truckers for services.  Such transactions are not taken into account by the PACA.

In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.

Unfortunately the PACA does not offer protections to produce transportation entities who deliver fresh fruits and vegetables.  Whether you are faced with an unfair claim, your load is unfairly rejected, or you are not paid for your services, you are pretty much at the mercy of the produce receiver.  Of course, you can  file a lawsuit where the alleged violations occur, but then you face the high cost of litgation, and have to make court appearances in a venue that may be thousands of miles away.  In other words, it usually is not worth the time and effort.

How much time and money is lost every year by produce haulers is not known.  But talking with people in transportation, it is significant.  The produce industry has fought tirelessly for decades to avoid having truckers receive the same protections they receive under the PACA.

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Target Stores to Have More Perishables

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According Target, the Minneapolis-based chain, more perishables including meat and produce will be available in over 100 stores beginning March 25th.  The stores will have about 10,000 square feet for perishables, and will come at the expense of reducing such areas as home and apparel and accessories.

To see the locations of stores with expansions go to Target’s website for a map.

It was in 2008 the chain launched a program for groceries in its 1765 stores to provide one-stop shopping for customers.

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Florida Spring Shipments to Begin Early

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Despite a freeze on January 3-4, which caused some damage to early spring Florida produce, overall it has been a warmer-than-normal winter and most shipments should be one to two weeks earlier.  Florida’s peak spring shipments will occur from late March, extending into May until hot weather begins reducing volume.

Florida spring loadings often involve multiple pick ups of items ranging from bell peppers to squash, cabbage, cucumbers and other veggies.  Loads with multiple pick ups often mean multiple drops at the other end of the haul, so be sure and negotiate your freight rates with this in mind.

Tomatoes are a big volume item from Florida and expect loads to be available a week earlier than usual from the Immokalee and Palmetto-Ruskin areas — starting in early April.

As for citrus, shipments are expected to wind down up to three weeks earlier on items such as tangerines (late March) and grapefruit (in April).  Tangerine loadings normally end in late April.

Florida ships a significant amount of spring red potatoes from the southern part of the state such as from Lake Wales.  Heaviest red potato loadings take place during March and April.

Florida watermelon shipments will get underway in early April.

South Florida red potatoes grossing about $2600 to Philadelphia.

 

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Veteran Trucker Tackles First Produce Load

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Jerry Cravens has been trucking since 1991 and as an owner operator since 2002.  After all these years, he is fueling at an Atlanta truckstop before picking up his first load of produce.

Leased to A.L. Smith Trucking of Versailles, OH, Jerry is picking up a load of tomatoes from a Del Monte warehouse in Atlanta for delivery to another Del Monte facility in Winset, NC.  At the Winset warehouse, he’ll load more fresh produce and head to Del Monte’s operation in Columbus, OH.

The closest Jerry has come to hauling produce was about 20 years ago with a load of cheese.  Since then his focus has been with dry freight.

As Jerry was preparing to pull out of the truck stop and head to the Del Monte warehouse, this writer forgot to get his contact information.  It would be very interesting to see if his first produce load would be his last.  Or just maybe he found a new challenge after all these years that he really likes!

Jerry fully realizes hauling perishables “is definately more challenging than pulling a dry van.”  He decided to haul produce on the recommendation of a friend who had “made good money” over the past year leasing with A.L. Smith.

Jerry says his career as an owner operator has succeeded  by being careful whom he hauls for and taking the most profitable loads.

Over the years he has considered obtaining his own operating authority, but he has known too many truckers who have tried it and failed.

Prior to trucking Jerry graduated from high school, then enlisted in the U.S. Navy  for four years, before transferring to the U.S. Army for another six years.

Between the experience in the military and his time hauling dry freight, he seems confident he is prepared to enter the world of produce trucking.  Jerry is aware of the “weird hours” and delays often associated with loading and unloading fresh fruits and vegetables, plus plenty of other issues at the docks.  He has been briefed on important factors such as maintaining the correct temperature for his load of tomatoes he’ll transport in a 53-foot Utility trailer equipped with a Carrier refrigeration unit.  The trailer is owned by the company to whom he is leased.

As Jerry was finishing fueling his truck, he was asked if he had any advice for anyone looking to enter trucking and wanted their own truck.  He advised they first learn the industry as a company driver.

As for buying a tractor, he advised against purchasing a new one.  He cited the high monthly payments as a primary negative with a new truck, along with the higher down payment required.  Jerry also cited other factors such as lease-purchase plans “where you will end up paying too much.  Buy a new truck and it is hard to come up with those $1800 per month truck payments.”

Jerry  practices what he preaches.  He owns a 2001 Kenworth T-600 with a 250-inch wheel base and a 13 speed transmission.  His truck payments are $500 per month.

“If you own your own truck you  always have a way home,” he surmises.  “I’ve seen too many of these company drivers fired while on the road and have had to find their own way home.”

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Northwest Produce Shipments

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Some of the best loading opportunties this time of year are out of the Northwestern United States – namely with Washington state (apples, pears, potatoes and onions) and Idaho and Oregon (onions and potatoes).  While the onions and spuds may pay a lower freight rate than fruit, this region at least has good volume in late winter.

Washington’s Yakima and Wentachee valleys continue shipping a lot of apples and lesser amounts of pears.  Apple loadings are averaging about 2,500 truckload equivalents per week, with pears loading around 400 truckload equivalents weekly.  I use  the term “equivalents” in the Northwest since a heavier percentage of produce is shipped by rail than most regions.

There also are onions being shipped from Washington’s Columbia Basin, as well as the nearby Umatilla Basin in Oregon.  The two areas combined are averaging around 670 truckload equivalents per week being shipped….The Western area of Idaho and adjacent Malheur County of eastern Oregon is loading about 750 truckload equivalents of onions weekly.

Idaho easily remains the largest shipper of russet potatoes, but has been increasing shipments of red potatoes in recent years.  Most produce is originating out of the Upper Valley and the Twin Falls-Burley District.  The state is shipping over 1,550 truckload equivalents per week.

Washington apples/pears are grossing about – $6000 to Miami.

Washington’s Columbia Basin potatoes/onions – $3800 to Chicago.

Idaho/Oregon onions – $1600 to Los Angeles.

Idaho potatoes – $5300 to New York City.

 

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Hunts Point Will Never Move

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If there’s something I’d be willing to bet the farm on – if I had one – it would be that the Hunts Point Terminal Wholesale Market – at least in my lifetime, will never leave the South Bronx for New Jersey, or anywhere else.

This once again comes to mind as New York City and the governing body of the world’s largest wholesale produce market – the Hunts Point Terminal Produce Market Cooperative, have agreed to a 90-day extension for exclusive negotiations to continue trying to reach a long-term lease.  In essence, this gives the involved parties through May to negotiate.

While  New York City certainly doesn’t want Hunts Point to move its facilities to New Jersey, which keeps offering it tax incentives to do so, it’s not going to happen.  New York City loves the taxes it receives from the $2 billion in annual revenues Hunts Point generates.  There are 47 vendors, primarily wholesale receivers and distributors, on Hunts Point, and they love the location.  It is situated in the middle of America’s largest concentrated population.  The last thing they want is a wholesale market in Jersey, and having to distribute fresh fruits and veggies to customers in New York  City, which would require crossing the gridlocked George Washington Bridge, Lincoln Tunnel and countless other thoroughfares going over and under the giant Hudson River.

While it might be a long haul produce trucker’s dream delivering product in New Jersey rather than the South Bronx, it isn’t going to happen.  The only reason the Hunt Point folks even pretend to want to move to Jersey is as a negotiation tool to leverage a better deal with New York City, who actually owns and leases Hunts Point.

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National Produce Loadings

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Easter is Sunday, April 8th and is always big for such items as strawberries and asparagus.  California will be just about the only place shipping such items for Easter as Mexican strawberries will be pretty much finished for the season, while California “grass” from the desert may not have the greatest volume with its season just getting underway.  California strawberries will have the market to itself with Florida and Mexico shipments finished.   California berries will be heaviest out of the Oxnard district, with lighter volume coming out of Santa Maria.

Ready for PieIn Michigan, apple shipments continue from the Western Part of the state, primarily from the Grand Rapids area.  The state should ship about 23 million cartons, down some from its record setting season that had 28 million cartons of apples.

In the Appalachian district of  Maryland, Pennsylvania, Virginia and West Virginia about 50 truckloads of apples are being shipped each week.   New York state is loading about 200 truckloads of apples weekly from the Hudson Valley, as well as Central and Western areas of the state.

Southern California berries, citrus grossing – about $5600 to New York City.

Western Michigan apples – $3200 to Dallas.

Central New York apples – $3150 to Boston.

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