Author Archive

Navigating the Intersection of Transportation and Analytics

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By Michael Patrick, ALC Corp.

Transportation and analytics go together like peas and carrots. As technology continues on an upward trajectory with the implementation of artificial intelligence and machine learning, transportation companies will have to continue to adapt their environments to use this technology to their benefit. We currently use basic metrics to help our customers, managers, and brokers be as effective and efficient as possible. We combine our data with multiple data sources to get an overall market picture. 

As a third-party transportation company, we use business intelligence and analytics in a multitude of areas. Market trends are used to help us bid spot market freight and rate prediction engines to help forecast rates on customer bids. Executives and managers use data and analytics to conduct customer, carrier, and employee reviews on a quarterly basis.  

Customers and carriers benefit from Allen Lund Company conducting business reviews that show them not only trends in the overall marketplace, but also identify areas where they may reduce costs and thoroughly streamline their transportation. We use things like loads, customer spend, weight and pallet analysis, lane and cost analysis to create a great story for our customers and carriers.

One example comes to mind of ALC using data and analytics to help a customer reduce costs within their transportation department. We were asked to help this customer with a market analysis on their lane set. We ran the customers rates and market rates and showed them which areas to reach out to the incumbent carrier in order to adjust their rates to market levels. Some of these rates went up, and some went down. Overall, the customer felt like they not only got better rates, but also better service from their carrier. Win-win for everyone involved.

As technology continues to grow, we will have to stay ahead and evolve quickly in order to keep up with our customer and carrier demands. Allen Lund Company is committed to keeping up with the markets and to keep our customers, carriers, and employees up-to-date on all current market trends. The Business Intelligence team here at ALC will continue to push the envelope on what is possible with analytics.

*****

Michael Patrick is the Director of Business Intelligence and has been with Allen Lund Company since January 2018. He graduated from Winthrop University with a BS in Marketing in 1998 and earned his MBA from The Citadel in 2002.

michael.patrick@allenlund.com

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A 23% Plunge in Peruvian Blueberry Exports to U.S. has Occurred This Year

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Between January and August, Peruvian blueberry exports reached $343 million in FOB value, registering a 14 percent drop year-on-year. According to Peru’s Exporters Association, the decrease was mostly due to weather factors.

According to the ADEX Data Trade Intelligence System, the United States took a 49 percent share of overall shipments, confirming its position as the top destination market for blueberries.

Between January and August, Peruvian blueberry exports reached $343 million in FOB value, registering a 14 percent drop year-on-year. According to Peru’s Exporters Association, the decrease was mostly due to weather factors.

According to the ADEX Data Trade Intelligence System, the United States took a 49 percent share of overall shipments, confirming its position as the top destination market for blueberries.

However, the U.S. percentage also saw a 23 percent decrease compared to last year’s figures, as Peruvian volumes continue to be hindered by El Niño. In August, Peruvian domestic production fell by 52 percent.

The Netherlands and China complete the top three destinations for Peruvian blueberry exports this season, with a respective 20 percent and 10 percent share of shipments.

Piura, Lambayeque and La Libertad continue to lead production. But these growing areas also post major decreases: Piura’s volumes dropped 80 percent, Lambayeque’s by 79 percent and La Libertad is down 50 percent year-on-year.

Agroexports Manager Claudia Solano Oré assures that ADEX already has a strategy to boost the sector, as weather woes continue to stall production.

ADEX will be visiting associate companies to learn more about their challenges, in hopes of providing support.

The Netherlands and China complete the top three destinations for Peruvian blueberry exports this season, with a respective 20 percent and 10 percent share of shipments.

However, the U.S. percentage also saw a 23 percent decrease compared to last year’s figures, as Peruvian volumes continue to be hindered by El Niño. In August, Peruvian domestic production fell by 52 percent.

Piura, Lambayeque and La Libertad continue to lead production. But these growing areas also post major decreases: Piura’s volumes dropped 80 percent, Lambayeque’s by 79 percent and La Libertad is down 50 percent year-on-year.

Agroexports Manager Claudia Solano Oré assures that ADEX already has a strategy to boost the sector, as weather woes continue to stall production.

ADEX will be visiting associate companies to learn more about their challenges, in hopes of providing support.

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Lipman Expands Investment in Operations; Acquires Chapman Fruit

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IMMOKALEE, FL – Lipman Family Farms is proud to announce significant investments in vegetable production that will revolutionize their operations and bolster the quality and output of their products. 

In a dynamic industry landscape where consumer preferences continually evolve, Lipman Family Farms remains steadfast in its commitment to meeting the ever-changing demands and increasing consumption of fresh vegetables.

“We recognize when it’s time to invest into more resources so that our team can meet the needs of our customers and consumers alike,” Elyse Lipman, CEO of Lipman Family Farms stated. “With these investments, we will be able to meet consumer demands, enhance our operations, and enforce our position as a reliable partner in the industry.”

The key investments made by Lipman Family Farms include:

Increased Vegetable Acreage in Florida: Lipman has significantly expanded its vegetable and watermelon acreage in Florida, ensuring a consistent supply of high-quality vegetables year-round. This expansion enhances their ability to meet consumer demands for fresh produce, no matter the season.

Acquisition of Chapman Fruit Co.: Lipman Family Farms has purchased Chapman Fruit Co., a reputable vegetable packer in Southwest Florida. This strategic move creates additional capacity to accommodate the growing volume of vegetables produced by Lipman in the region, ultimately increasing cooling and packing capabilities to ensure the freshest produce reaches consumers.

Located in Immokalee, Florida, this acquisition provides a 65,000 square-foot packing facility that is conveniently situated near Lipman’s farms in Southwest Florida, allowing for short and efficient local transit. The facility is equipped to handle and store the increased volume of watermelon and vegetables produced by Lipman.

12-Lane AWETA Pepper Packing Machine: Lipman Family Farms has invested in a cutting-edge 12-lane AWETA machine for packing peppers in Florida. This machine expands the vegetable packing capabilities at Lipman’s existing facilities and significantly improves automation efficiencies. It can sort and pack approximately 5,200 cases of peppers per hour and offers various packing capabilities, including DRCs, PLU labeling, and bagging.

“The acquisition of Chapman Produce and the implementation of cutting-edge equipment, such as the AWETA machine, allow us to continue to streamline our operations and improve efficiency,” said Toby Purse, Chief Operating Officer of Lipman Family Farms. “These investments allow us to continue to enhance our operations, become more efficient, and deliver the same quality to our retailers and consumers alike.”

“With the new investments in acreage, equipment and facilities, our team can continue to meet our standard for producing and delivering quality fruits and vegetables,” Purse added. 

Lipman Family Farms is excited to embark on this new phase of growth and innovation, as they continue to meet the evolving needs of their consumers.

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California’s Largest Stone Fruit Shipper Files for Chapter 11 Bankruptcy

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Prima Wawona of Cutler, CA, the largest stone fruit producer in California’s Central Valley, filed for Chapter 11 bankruptcy protection recently, hoping to facilitate the sale of the company.

The company pointed the filing at “significant headwinds, including increased costs and weather-related impacts, that have combined to make our existing capital structure unsustainable.”

Reuters reports that the company, owned by private equity firm Paine Schwartz Partners, has about $679 million in debt, and plans to sell its business in bankruptcy, according to bankruptcy court documents. 

Prima farms peaches, nectarines, plums, and apricots on its 18,000 acres in California’s San Joaquin Valley.

If no buyer emerges, Prima will pivot to a debt restructuring or a liquidation of its business, according to court documents.

The company was formed from a 2019 merger of Gerawan Farming Inc. and Wawona Packing Company. The company had over $300 million in sales revenue in 2022, with 60% of that coming from the sale of peaches, according to court documents.

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Maine Potatoes Should Have Average Shipments this Season

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Maine potato growers and shippers are expecting average shipments for their crop in the 2023-24 season.

Cambridge Farms of Presque Isle, ME experienced average yields during harvest, although it may have a little more volume. The company has
russet, white, red and yellow potatoes.

Green Thumb Farms Inc. of Fryeburg, ME sees its volume being up slightly this year with good quality.

The Maine Farmers Exchange in Presque Isle describes this season’s potatoes as a mixed bags with some operations being up in volume. size and yields, while others are down. Rains and cloudy weather are cited as reasons.

Maine potato loadings got underway with the start of November.

Irving Farms Marketing Inc. of Caribou, ME has added a new storage unit to the 40,000-square-foot packing facility it opened last year. The new refrigerated, humidity-controlled storage facility will hold 55,000 hundredweight units.

The company is moving away from round white potatoes and offering more russets as well as red and yellow potatoes.

Volume and yields should be similar to last year.

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1st Chilean Grape Forecast of Season Predicts 5% Increase in Exports

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The Table Grape Committee of the Chilean Fruit Exporters Association (ASOEX) has released its first estimate for the 2023-24 season, projecting five percent growth in exports. This is based on information provided by the Committee’s member companies, which represent 82% of Chile’s total table grape shipments. 

The Committee is forecasting 63,780,328 18-pound boxes.  As ASOEX President Iván Marambio states, “This projected growth is due primarily to an increase in the production of new varieties, which will represent 63% of Chile’s total fresh grape exports this season, close to 40 million boxes.”

The Committee projects that within the next two years, 70% of grape shipments will consist of new varieties. This is a significant increase from 55% during the 2022-23 season.

The U.S. continues to be the main destination market for Chilean table grapes, despite challenges that are delaying the approval of the Systems Approach protocol for exports. For the upcoming 2023-24 season, the U.S. is projected to take 56% of overall shipments.  Asia and Europe follow with 19% and 16%, respectively.

The Committee’s coordinator, Ignacio Caballero, notes that green grapes will experience the most growth.  “We expect an increase of 16% in green grape volume over the previous season, with impressive increases in Sweet Globe, Autumn Crisp and Arra 15 varieties,” he states.

Exports of green grape varieties are projected to be around 22.9 million boxes, of which 74.4% will be new varieties.

Shipments of red varieties are expected to exceed 24.9 million boxes, of which 74.1% will correspond to new varieties. Timco, Allison, and Sweet Celebration are some of the main standouts among the red varieties. 

As for black grapes, exports will be around 6 million boxes, with 76.5% new varieties, including Sable Seedless, Sweet Favors, and Sweet Sapphire.

The first shipments of Chilean grapes are scheduled for mid-November.

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Pom Wonderful Villainizes Free Radicals and Praises Antioxidants in Ad Campaign

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LOS ANGELES – POM Wonderful, the worldwide leader of California-grown pomegranates and the No. 1 pomegranate juice in North America, today launched its nationwide campaign, “Real Life is Scary: Protect Yourself With POM.” The campaign aims to empower consumers to fortify their defenses against free radicals – the unstable molecules that can cause damage to our bodies over time – by protecting themselves with the antioxidant power of POM Wonderful 100% Pomegranate Juice. 

In a series of comedically spooky ads, the health antagonists – manifested by ghosts, aliens, and vampires – represent free radicals that pop up in everyday locations: business elevators, the laundromat and movie theaters. With every sip of POM Juice, the polyphenols in POM protect the protagonist against the chaotic free radicals. 

While the human body naturally maintains everyday levels of these free-radical molecules, external factors including smoking, stress, and environmental pollutants can escalate their production. Antioxidants help neutralize free radicals and can reduce damage over time.   

“The past few years have brought an even greater awareness to our health,” said Margaret Keene, chief creative officer at Wonderful Agency. “Through this campaign, we wanted to bring a lighthearted approach that shows how these moments are made easier when you have an antioxidant defense, highlighting POM’s health benefits in an imaginative yet relatable way.”  

The campaign was developed by The Wonderful Company’s in-house creative team at Wonderful Agency led by Keene. The spots were filmed in Prague and directed by Randy Krallman. 

“I’m excited to bring a new approach to our marketing that is playful and promotes the well-being of our consumers,” said Benal Serin, senior vice president of marketing at POM Wonderful. “In a time when consumers are looking for better-for-you options, POM Juice is the Antioxidant Superpower® and a daily defense against free radicals. We hope to educate and inspire consumers to take control of their health.” 

The campaign will run on targeted in-stream on connected TV, digital and mobile, linear TV, and cinema, as well as YouTube, Facebook, Instagram, and at select Spotlight Cinema theaters. 

For more information, and for the latest updates on POM Wonderful, please visit POMWonderful.com or @POMWonderful on Instagram. 

About POM Wonderful 

POM Wonderful is the largest grower and producer of fresh pomegranates and pomegranate juice in the United States as well as the worldwide leader in fresh California pomegranates and pomegranate-based products including our 100% pomegranate juice, healthy juice blends, and teas. We grow, handpick, and juice our own pomegranates to ensure the highest quality. POM Wonderful is part of The Wonderful Company, a privately held company with a portfolio that includes other No. 1 brands such as Wonderful® Pistachios, FIJI® Water, Wonderful® Halos®, JUSTIN® wine, and Teleflora®. To learn more about The Wonderful Company, visit www.wonderful.com, or follow us on Facebook, Twitter, and Instagram. To view the current Corporate Social Responsibility report, visit www.wonderful.com/csr

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USDA Forecasts Big Increase in Valencia Shipments

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U.S. Valencia orange shipments will be up 23 percent 2023-24, at 20.85 million boxes, an increase from 16.91 million boxes in the previous season, according to a USDA crop forecast.

The increases are expected to be led by a 35 percent growth in Florida Valencia orange production, which is projected to be at 13 million boxes next year, from 9.65 million boxes in 2022-23.

Florida production of non-Valencia oranges is expected to be up by 22 percent, at 7.5 million boxes, from last season’s 6.7 million boxes.

This will result in a nationwide increase to 44.95 million boxes for non-Valencias, up from 43.2million boxes for the 2022-23 season. California non-Valencia production will be more or less flat: 37 million boxes as opposed to 36.5 million boxes in the previous season.

Florida grapefruit production will be 5 percent higher: 1.9 million boxes, up from 1.81 million boxes in 2022-23. California’s grapefruit crop is expected to be down to 3.5 million boxes from last season’s 4 million boxes. Texas will see a slight drop, to 2.2 million boxes from 2.25 million boxes.

California navel orange production is expected to be up by 1 percent this season, at 74 million, according to a forecast issued by the California Department of Food and Agriculture (CDFA).

The CDFA report notes fruit set was much higher in Fresno County (360 per tree, from 2022-23’s 245) at that time. Fruit set for Tulare and Kern county was down over the previous year.

The CDFA report also predicted a California Cara Cara production of 7 million cartons.

For tangerines and mandarins, the USDA forecast is 23.5 million boxes, down slightly from 24.18 million boxes last season. California accounts for practically all of the drop, as well for total national production.

Lemon production is pegged at 24.5 million boxes, down from 27.9 million boxes last season. The drop is largely due to lower California production: 23 million boxes as opposed to 26.5 million boxes in 2022-23.

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Data Analytics Then, Now, and In the Future

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By Steve Hull, ALC Special Projects

I recently celebrated my 27th anniversary working at Allen Lund Company. So far, my career has included many different job titles and roles, from transportation broker to management positions and now to my current role as special projects business analyst. I’ve seen firsthand how the use of data in the supply chain has grown and evolved over that time span.  

When I started as a transportation broker working in the Los Angeles branch office in 1996, emails were rare, and the internet was still a ‘new thing’ we were all trying to figure out. Customers tendered loads to me via fax machine, and tracking and tracing a load amounted to a phone call every few days from the driver. If there were problems after hours, the drivers all had my home landline phone number to call! And we gave directions to drivers via atlases and the trusty Thomas Guide. The only real data we used was either counting up the piles of paperwork on your desk or tallying how many loads you helped a trucker haul in a month.

Things evolved when I was promoted to assistant manager in the Portland, OR, branch office in 1998. To help be more connected to data and information, I convinced the team we needed to upgrade to mobile phones and then Palm Pilots a few years later. That way, we could better monitor pickup and delivery ETAs and update our customers.

Then, as general manager of the Portland office in the early 2000s, data-driven principals really took off. Analytics around load volumes, pricing trends, and metric-driven scorecards started to be commonplace. We started using customers’ TMS modules, and ALC brought our solution to market in AlchemyTMS. Fax machines and print-outs went away, and e-faxes and digital PDFs became the norm. We also eschewed the room full of filing cabinets in favor of hard drives and servers. When the iPhone came out in 2007, I knew right away that the future had arrived! The ease at which you could pull up data to share with your customers was (and is) astonishing. 

I held that branch manager title for 20 years, and then it was time to hand off those responsibilities and put my experience to use in a new way. In early 2022, I took on the role of business analyst within ALC’s Special Projects team. I now work daily with our team of talented folks who help keep our broker’s eyes and ears aware of all the requirements of our customers and carriers. Dashboards, scorecards, maps, and spreadsheets are the tools of our trade. And we’re preparing for the future as well. APIs and AI programs will surely play a big role in what’s to come in the next decade.  

Data has proven to be the key to success for many parts of the supply chain in my past 27 years, and I’ve enjoyed my front-row seat to this proliferation of information. I can’t wait to see what comes next!

*****

Steve Hull is a business analyst working for the Corporate office, and has been with the Allen Lund Company for 27 years. Hull is a graduate of the University of Southern California, completing a dual major in political science and U.S. history.

steve.hull@allenlund.com

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1st Estimate for Florida Orange Shipments is Up 30% from Last Season

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The first monthly citrus crop forecast for the 2023-24 harvest season has been issued by the USDA. The federal agency estimates Florida orange production at 20.5 million boxes this season, which represents a 30% increase from last year.

This comes as the Florida citrus industry begins closing the door on what has been a very difficult year, with multiple weather incidents stalling production.

In 2022, the state was severely impacted by Hurricane Ian, which caused flooding and crop damage due to harsh winds. This year, Hurricane Idalia left a similar count, with the Florida Department of Agriculture and Consumer Service putting damages at an estimated $447.9 million.

Florida’s 2023-24 fiscal year began July 1, and with that came more than $65 million in funding from the Florida Legislature to support Florida citrus. This investment includes $38 million to support grower research and replanting of citrus trees.

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