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Georgia Loadings are Cranking Up

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While Georgia greens, cabbage, squash  and Vidalia sweet onions shipments have been underway, more items are joining the “party.”   Over the last half of May loadings will begin for cucumbers, bell peppers, watermelons and blueberries from southern areas of the state.  Volume on “blues”  will be lighter than usual at the start due a freeze earlier this year.  Most of the vegetable shippers have operations scattered between the Georgia/Florida state line stretching northward up to the Americus and Cordele areas….Vidalia onions, and some other vegetable shipments are in the Southeastern part of Georgia.

Just south of Macon, GA is the Ft. Valley area, famous for its Georgia peaches.  Loadings for the stone fruit should get started in a light way within the next week or so, with good volume coming about a week later.  About 2.5 million boxes of peaches should be shipped this season, down a little from the bumper loadings of a year ago.

South Georgia vegetables – grossing about $2800 to New York City.

Southeastern Vidalia onions – about $2600 to Chicago.

 

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Produce Shipments Across the USA

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Looking ahead in Washington state, unless weather changes everything, record cherry shipments are being predicted.  Coming out the Yakima and Wenachee valleys, cherry shipments kick off the second week of June and will continue into mid July.  Meanwhile, if you’re in the region, steady shipments of late season apples and pears continue.

In Nogales, AZ, the U.S. Custom and Border Protection has expanded lanes for trucks importing Mexican produce to eight lanes.  Mexican grapes are now crossing the border and an estimated 8 to 9 million cartons are expected to be shipped to points throughout the U.S. and Canada.

Looking down the road a bit, vine ripe tomatoes out of Southeastern Arkansas could start shipping one to two weeks early this year.  Light volume is expected by late May, with good volume coming within a week or so.  Shipments are expected to continue into mid-July.

Blueberry loads are now available from Southern Georgia, joining other items ranging from greens to squash, cucumbers and peppers.  Southern Georgia’s Vidalia onions are now in peak movement to markets, particularly in the eastern half of the country.

In California, grapes and melons are coming out the desert, while Southern California continues to ship berries, avocados, citrus and some veggies.   Look for building volume on vegetables from the Salinas Valley….May should be an interest month as we monitor building produce volume, availablilty of refrigerated equipment, and its effect on freight rates…..As always, truckers’ abilities to find westbound freight to pick up fruits and vegetables in California and the Northwest will be a challenge.

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Produce Industry Should Get Its Act Together

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Tod Taylor has been trucking off and on for over 25 years, but it’s the onlyprofession he’s known for the past seven years.  He has pretty much done and seen it all during his career and is thankful the equipment has improved immensely.

He still has vivid memories of his first job trucking  in January 1986 when he was driving for a company with a 1982 cabover.  “They left me in New York City for three weeks, mainly to pick up and drop trailers.  I vowed I’d never go back there,” he recalls.

He hasn’t strayed much from those feelings today.  A company driver for Professional Services Transportation Inc. (PSI) of Huntsville, MO, Tod says he refuses to drive inside of Interstate 287 in New York.   He, as well as PSI pretty much also avoids trucking in California because of the rules, regulations and gridlock.

“You can’t make any time in California or New York.  You are dealing with too many things that eat the clock up,” he states.

While hauling meat is the primary focus for PSI, the company also transports its share of fresh produce.  In fact, he finds some similarities between the two categories of loads.

Tod had just hauled a load of meat from Milwaukee and made two drops inAtlanta.  Now he was parked at an Atlanta truck stop and in 14 hours (3 a.m.) was scheduled to make his first of three more drops.  Sounds a little like some produce hauls, in which he also aired some opinions.

“If the produce people would get their act together, it wouldn’t be bad (hauling fresh fruits and vegetables).   You wait three days to pick up two skids.  You wait for those skids because the product has to be harvested.  Trucking just don’t pay enough to do that.  When I get lucky and finally get loaded, then they don’t want to pay you anything to haul it,” he reflects.

Tod believes a minumum of two dollars per mile is needed to haul produce out of California and many other places, “but most guys aren’t getting that.  They want you to drive 3,100 miles for $2,800.  You can’t do that, especially when you are there three to four days waiting for a load.  It’s not worth it.”

At age 50, Tod has never owned his own truck, although he has considered it from time to time.  However, he has always decided against being an owner operator “because I don’t need all of the extra headaches.”

Tod drives a beautiful 2012 Kenworth T-660, which had only 37,000 miles on it.  He loves the truck that is powered by a Paacar 455 h.p. engine, 15-speed automatic transmission, and pulls a 53-foot Great Dane holding a Carrier refrigeration unit.  The truck is a light oak leaf color with an 84-inch studio sleeper.  The cab has a lot of modern features including a GPS system built into the dash.

He concludes, “Trucking has come along way from that ’82 cabover freight shaker I used to drive.”

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United Produce Panel’s View of Trucking

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If you want to know how produce trucking issues are viewed by some folks in the produce industry, you should have been at the annual convention of the United Fresh Produce Association, held in Dallas.   Specifically, the session was held  on May 1st by wholesalers/distributors and titled Examing Today’s Transportation Challenges and Alternatives.

The 60-minute meeting was held in the same Dallas Convention Center that will host the Great American Trucking Show August 23-25.

Among the issues dealt with were the driver’s shortage, detention,  and hours of service.  (Within the next few days I’ll provide more coverage on the session ranging hours of service to stolen loads and dicussions of alternatives to trucks for moving produce).

On the program was moderator, Ron Carkoski, head of Four Seasons Produce, Inc.; Alex Crow, national trucking manager, Hellman Perishable Logistics; Ken Nable, president of Kington and Associates Marketing, LLC; Dan Vache’, vice president, supply chain management, United; and Gary York, general manager, C.H. Robinson Worldwide, Inc.

Concerning the availablity of drivers, Crow noted there was only a “moderate” shortage of drivers — amounting to about 200,000.  “We need to treat drivers as professionals.  We are feeling the shortage,” Crow related.  His logistics company had even hired professional “head hunters” to  find more drivers.  “We (as an industry) expect drivers to be professional, but often don’t treat them like professionals.”

Crow believes the driver shortage results from issues such as not paying them enough, to excessive waiting times for loading and unloading.  “With the multi pick ups and multi drops we have to let the customers (receivers) know they need to pay (extra) for that.”

York at C.H. Robinson concurs.  He points out driver salaries trail other occupations and many would be truckers chose higher paying jobs in construction and elsewhere.

“In 2004 we saw 1.6 million housing starts.  Today there are about 600,000.  Housing starts next year are projected to be about one million, and “drivers tend to go where the work is.  As the economy improves, the driver shortage will increase, and transportation will cost more in driver wages.”

Vache’ of United, who has an extensive background with in-tranist temperature recording devices (such as Ryan Instruments and SensiTech), adds, “Drivers are tired, not just of being treated like second class citizens, but third and fourth class citizens.  They are away from home a lot and they have families to support.  What can we do to make it more attractive for drivers to enter trucking?”

York urges shippers and receivers to work on efficiency in reducing wait times at the docks.  There also needs to be faster turn around times between loads.  He notes while detention charges certainly are not “mainstream” in the produce industry, detention charges are being applied more than in the past.

A benefit for drivers will be advances in technolgy, York believes, which can be used to expedite action on loads involving claims.  Technology can help “lay the blame” in a claims dispute and thus reduce the amount of claims arising.

Regarding efforts to increase gross vehicle weights for Class 8 trucks from 80,000 to 97,000 pounds, no one expressed much hope Congress will deal anytime soon with this issue.

Vache’ says increasing truck weight limits will be safer because of the industry continues to improve its safety record, equipment is better, etc.  Heavier loads will also reduce the number trucks on congested highway.

York calls the idea of bigger trucks “appealing.”

Nable adds that heavier trucks will reduce the “footprint.”   In other words, it would be good for the environment.

While the panel emphasizes the pros of increasing weight limits, the downside from a driver’s point of view were largely ignored.  For example, increased weight limits will result in more wear and tear on trucking equipment, consume more diesel fuel, and result in higher costs of operation for the trucker.  Will the produce industry willingly increase rates accordingly?  Most truckers I have talked to believe they will be expected to haul the heavier loads without additional compensation.  The prospects of the produce industry increasing freight rates for hauling heavier loads was not addressed by the panel.

 

 

 

 

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California Summer Fruit Loading Outlook

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I’ve recently returned from a produce show in Dallas and although freight rates on IMG_5321California produce loads have recently been steady, or in some cases declining a little, most people I’ve talked to (shippers, wholesalers, truck brokers, trucking companies) only see this as the calm before the storm.   In coming weeks as volume builds throughout many California shipping districts, they are expecting rates to show significant increases.  $9000 produce rates from the West Coast to the East Coast are expected to be common.  Some would not be surprised if rates hit $10,000.

Here’s the outlook for loading opportunities on the huge volume of summer fruit that annually is shipped from California.

Strawberries – Mostly available right now out of Southern California and to a lesser degree from Santa Maria.  Yet California ships 88 percent of the nation’s strawberries and it really cranks up in a few weeks when Watsonville starts shipping in volume.

Blueberries –  These berries are now being loaded out of the Arvin district and as the season progresses will move northward in the San Joaquin Valley to Delano and Kingsburg.  California expects to ship 15 to 20 million pounds of “blues” this year.

Melons – watermelon and honeydew from the Bakersfield area kicks off  in mid-June, followed by cantaloupes around July 1st.

Stone Fruit – It was in 2008 around 60-million 25-pound cartons of peaches, plums and nectarines were shipped, but last year loadings were down to an estimated 47 million cartons.  Don’t expect anymore this year.  California has been shipping too much stone fruit that doesn’t taste very good, and are replacing some orchards with improved varieties….Cherries are a different story.  Californians know how to grow good tasting cherries!  This year the state should be loading decent volumes of cherries by the third week of May.  Shipments should be in the 8 to 10-million box range; 12-million boxes in the unlikely event perfect weather continues.

Table Grapes – The Coachella Valley is currently shipping grapes and will continue through June.  Shipments will then transition to the Arvin/Bakersfield district, where the huge volume will begin and gradually moves northward through the San Joaquin Valley.  California may have record shipments this year, and top 100-million boxes for the first time.

Apples – California isn’t really known for apple shipments as it is dwarfed by Washington state.   However, it does have 16,000 acres of orchards and available loads should be similar to last year.  Shipments of the gala variety begins in late July and runs through mid-September.  This variety will be followed by granny smiths in August and and fujis in September and cripps pink in October.

Oranges – The 75-million-plus cartons of navels are pretty much history for this year, while smaller loadings of valencias are now being shipped.  About 28 million, 40-pound boxes of valencias should be shipped.

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Oklahoma is Building New Weigh Stations

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My home state of Oklahoma just opened the first of eight new weigh stations April 27th and was very proud of the fact it nailed its first overweight big rig within an hour of its opening.  State officials would only say the truck was significantly over the 80,000-pound gross vehicle weight limit at the new $11 million port of entry, located  just south of the Kansas-Oklahoma state line on I-35.  Oklahoma officials also are very excited that the next new weigh station will be opening soon on I-40, in Western Oklahoma just east of the Texas state line.  This weigh station will “only” cost $8.7 million.

The Oklahoma Department of Transportation and other Okie bureaucrats are very excited and can’t wait to get the all eight new port of entries in operation and start racking in the dough.  Afterall, it’s going to take a lot of fines to cover those millions and millions of dollars to build these weigh stations.  These new facilities also will be equipped with a lot high tech equipment ranging from weigh-in-motion that weighs big rigs at highway speeds (at least on I-35); license plate readers; automatic checks of truck registration and safety rating, among many other features.

Oklahoma officials cite the need for replacing 50-year-old existing weigh stations to protect the state’s investment in highways, bridges and city streets, as well as making the roads safer for motorists.

These are fine, good and honorable goals.  Let’s just make sure these are the true goals, and that they are not tempted to start issuing fines, and putting truckers out-of-service for less than honorable reasons.  We all know, safety inspectors can be very picky and cause a lot of problems for drivers, even for minor infractions.  I’m not saying this will happen, but when there’s bills to be paid to help justify these new ports of entry, one never knows.

 

 

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National Loading Opportunties

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Going from East to West  with U.S. produce shipping areas, in Florida I’m not sure why rates are little, if any more to Boston than to New York City.  Afterall, you’ve got another 200 miles to Boston from Florida.  Of course, Boston traditionally offers fewer return loads.  So if you can gross $3600 to New York, surely a load of Florida vegetables, melons etc. should be getting close to $4000.

Southern Georgia shipments are cranking up with peppers, squash, greens and cabbage, while Southeastern Georgia Vidalia onions are in full shipping mode.  Overall, expect Vidalia onion loadings to be off 20 to 30 percent this season due to disease.

In South Texas, sweet onion shipments are two to three weeks ahead of schedule and should be pretty much finished around May 10th.  The Lower Rio Grande Valley also is loading items ranging from citrus, to beets, greens, cabbage, etc.

There are steady shipments of Idaho potatoes — grossing about $4200 to Atlanta.

The same holds for storage onions from the Idaho and Malhuer County, Oregon region — grossing about $5400 to Baltimore.

South Texas produce – about $2800 to Los Angeles.

Vidalia, GA onions – about $2600 to Chicago.

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Guts, Determination and Restoring My Faith in America

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By Larry Oscar

When hard economic times hit a nation it always seems to bring out the best and also the worst in people.  Anyone with a good job or business should stand
back and give thanks from time to time for the successes and also the lessons of life’s failures. For without success, there is no sense of accomplishment and without failure there is no sense of humility. For each of us to be a more complete human being we need to take ourselves to task from time to time.

Personal responsibility for our own lives is paramount.  I never cease to be amazed at how some people drop out of school, steal, get involved with drugs, slovenly go through life thinking society owes them something, and make constant demands for free handouts.  And others, who suffer real tragedy in their lives, always work hard to overcome their problems and manage a smile. Recently we have seen greedy union members demand more benefits for themselves in demonstrations and rallies throughout the nation. They yell, chant, and thrust signs in the air demanding higher wages and more social benefits. I suspect more will follow. They never promise an increase in their productivity to actually earn an increase in their wages. They don’t want to stand on their own two feet and be held accountable for their own skills and quality of their own work.  Instead they want some big union boss to make threats on companies who are trying to just survive in a stressful economy.

Our government educational system also reeks with these type of people.  The school systems have become a haven for slothful and greedy adults who do not want to be held accountable for their performance, and yet they demand that public school systems provide them with a guaranteed lifetime handout. Their attitude is “who cares about the children, I want a guaranteed lifetime job with a fat pension.”  They have no concern for their customers.  In fact, I wager that very few of them even know who their customer is.  They are pathetic human beings.

Then there are those who demonstrate, by their actions, the content of their good character. Recently I was in need of canvas winch covers for a boat. Nothing fancy, or very expensive, just a good quality product at a fair price would suffice.  I found some on an internet auction and ordered them.  The person who made them did a superb job, and also insisted that if the quality did not meet what I was looking for that my money would be refunded.  I was so impressed with the service and quality that I ordered more. A few months later I inquired if there was a website where I could order them from, and if other canvas products were available. This was her reply: “I can sew anything for a boat, I owned and operated a shop for 12 years called “Canvas and Sail.”  I even built sails and repaired them. I built the big glass enclosures on yachts. I did it all. Then one fall shattered it all and I have spent nine years, and several surgeries, getting strong enough to do it again.  I can’t do big, heavy jobs anymore, but stuff like wheel covers, sail repair, and the little stuff I can do.  I’m grateful for every job I get, and if it isn’t right I’ll make it again.  I’m still real disabled but love sailing, and sewing is how I take care of myself.  My husband died and I am alone, and we all have to eat, so I am so grateful for every job I get.  Thank you so much, I will always do my best for you at whatever you need made for your boat. I’ve made thousands of awnings too, and did all the coast guard stuff on their boats for years until I fell on a boat. Thanks a bunch.”

This is a true American.  She had obviously been successful in her life and business.  Then tragedy struck.  She is still recovering from it, and she is a determined soul.  She’s not only fighting to pay her own way in life, but she’s thankful for what she has, and she takes great personal pride in her work. She’s not asking for a handout.  She is taking personal responsibility for herself and earning her way through life.  Just when you think all Americans have turned into a bunch of whining beggars, along comes a true American who restores your faith in what this nation was originally founded on, guts and determination to succeed. We were founded by people who fought life’s tragedies and hardships and won.  We should help those who are willing to help themselves, and we should kick the others in their large oversized buttocks!  Oh, by the way, if your looking for some high quality canvas products for your boat, check out…

http://motors.shop.ebay.com/lindamay2006/m.html?_nkw=&_armrs=1&_from=&_ipg=

 

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Senate Bill has “Big Brother” Mandate

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By OOIDA

(Grain Valley, Mo., April 25, 2012) – Despite being previously struck down by a federal court, a costly and unnecessary mandate has been included in the U.S. Senate’s highway surface transportation funding legislation.

U.S. truckers see it as the last thing a struggling trucking industry needs right now and want to see it removed from the bill.

 A provision in S.1813, also known as MAP-21, requires all long-haul trucks to be outfitted with electronic on-board recorders, or EOBRs, capable of real-time tracking for monitoring of trucks and drivers. The Owner-Operator Independent Drivers Association (OOIDA), the largest trade organization representing professional truckers and small-business truckers, contends EOBRs are an unproven technology, providing no cost benefit or highway safety improvement.

  “It’s exorbitantly expensive while providing no safety benefit whatsoever,” says Todd Spencer, OOIDA executive vice president. “This is being done under the guise of compliance with federal hours-of-service regulations, but it is actually a way for large motor carrier companies to squeeze more ‘productivity’ out of drivers and increase costs for the small trucking companies they compete with,” said Spencer.

 A regulatory version of an EOBR mandate was struck down by a federal Court of Appeals for the Seventh Circuit because the FMCSA failed to deal with the harassment of drivers. Noted in that ruling was the fact that no research has shown how such a mandate would do anything to improve highway safety. 

 “EOBRs are no more reliable than paper log books for tracking hours of service,” said Spencer. “The device only tracks when the wheels are moving, not taking into consideration the colossal waiting times spent by truck drivers at shipping docks. Plus, we hear every day from truckers whose companies use the devices to  harass truckers into driving more hours.”

 The current EOBR rulemaking has been estimated by the Obama administration to cost the industry $2 billion if enacted.  In response to a request made by U.S. House Speaker John Boehner to disclose all rulemakings in excess of $1 billion, President Obama listed the current EOBR rulemaking as one of the seven most expensive regulations pursued by the administration. 

 “It is more than twice the cost of hours-of-service regulations, which by the way are still in flux and not truly finalized. Yet the FMCSA presses on, seeking additional authority from Congress for yet another mandate,” said Spencer.

 OOIDA sent a letter to the Senate conferees April 25th on behalf of its members expressing all of these concerns.

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Good Buys: Chilean Grapes, California Strawberries, Sweet Onions

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There’s some really sweet, tasty late season grapes from Chile in your produce department now.  Enjoy them while they last, because the season for these imports are just about over…..Never fear though, grapes from Mexico should start arriving in your supermarkets within the next couple of weeks.  There also will be the first domestic grapes arriving, from the Coachella Valley near Palm Springs, CA.  Many retailers I’ve spoken with actually prefer the Mexican grapes over the Coachella grapes.  Keep in mind that a lot of the Mexican grapes are actually owned, or financially backed by grape growers from the U.S. — especially from California.

I’ve been a little disappointed overall with California strawberries thus far.  Some have been better than others, but overall, the quality could be better…..Of course, I have to qualify this since I shop at a small town Wal-Mart, with absolutely not competition.  Wal-Mart’s produce departments have really went down hill in the past several years.

You should be finding those wonderful sweet onions in your stores by now — especially those from Vidalia, GA.  Of course, Texas grows some pretty good sweet onions as well.

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