Author Archive

July Freight Volumes, Rates Chilled by Seasonality

By |

BEAVERTON, OR — Truckload freight volumes fell last month, and national benchmark spot rates for dry van and refrigerated (“reefer”) loads retreated from their gains in June, reported DAT Freight & Analytics, which operates the industry’s largest online freight marketplace and DAT iQ data analytics service.

The DAT Truckload Volume Index (TVI), a measure of loads moved during a given month, was lower in July for all three equipment types:

• Van TVI was 226, down 7.0% from June and 3.0% lower year over year.
• Reefer TVI slipped to 169, 3.4% lower than in June but 1.2% higher year over year.
• Flatbed TVI was 238, 12.8% lower compared to June but 3.5% higher year over year.

“Shippers faced service disruptions at the ports and in the less-than-truckload sector but were able to secure van capacity without causing the needle to move on spot rates and volumes,” said Ken Adamo, Chief of Analytics.

Despite month-over-month declines, the reefer and flatbed TVI numbers were the highest on record for July as fresh and frozen food, metals, machinery, construction materials and other seasonal freight moved through supply chains.

Demand for trucks slowed

National average load-to-truck ratios for van and reefer freight have been virtually unchanged for three straight months:

• The van ratio was 2.6, equal to June and down from 3.8 in July 2022.
• The reefer ratio was 3.8 – unchanged from June and down from 7.2 a year earlier.
• The flatbed ratio was 7.1, down from 9.7 in June and significantly down from 21.8 in July 2022.

Spot, contract rates dipped

Reflecting flat demand, DAT’s benchmark spot rates slipped in July:

• The spot van rate was $2.07 per mile, down 1 cent compared to June and 56 cents lower than in July 2022.
• The spot reefer rate dipped 3 cents to $2.44 per mile and 60 cents lower year-over-year.
• The spot flatbed rate was $2.54 a mile, down 7 cents month over month and 72 cents lower year-over-year.

Line-haul rates, which subtract an amount equal to a fuel surcharge, declined as well. DAT’s benchmark van line-haul rate was $1.63 per mile, down 2 cents compared to June. The reefer line-haul rate fell 5 cents to $1.96 per mile and the flatbed line-haul rate dropped 9 cents to $2.01 per mile. The average fuel surcharge increased by 2 cents to an average of 44 cents a mile for van freight, 48 cents for reefers and 53 cents for flatbeds in July.

“Spot rates, as a reminder, are ‘all-in’ rates, meaning no separate fuel surcharge to help mitigate the risk of fuel price fluctuations. You have to negotiate each individual load with fuel and operating costs in mind, which is not always easy,” Adamo said. “The sudden increase in fuel prices is testing the wherewithal of small carriers at a time when freight volumes are in a seasonal lull.”

DAT’s benchmark rates for contracted freight strengthened compared to pricing on the spot market. The van rate fell 1 cent to $2.57 a mile, the reefer rate gained 3 cents to $2.91 a mile and the flatbed rate rose 5 cents to $3.29 a mile.

After closing for three straight months, the spread between contract and spot rates was unchanged for van freight and increased by 6 cents for reefers and 12 cents for flatbed loads. The size of the gap is an indicator of bargaining power among shippers, brokers and carriers, Adamo explained.

About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.

Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT benchmark rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.

Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for truckload freight.

About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Shippers, transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions.

Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000 indices.

Read more »

Berries are the New King of Mexican Agricultural Exports

By |

Berries replaced beer as Mexico’s top agri-food export product in 2022. In the first two months of 2023, the industry confirmed its profitability with a revenue value of $777 million, according to the Bank of Mexico.

This means berries has surpassed other popular crops, such as avocados, and highly demanded products such as beer and tequila.

Berries are produced commercially in 22 of the country’s 32 states, and exported to 38 nations across the globe.

Mexico produces raspberries, blueberries, blackberries and strawberries, with the latter leading the export figures.

The U.S. is the biggest importer of Mexican berries, followed by the Middle East, Southeast Asia and Europe.

During the 10 years, strawberry, blueberry and raspberry production has tripled from 257,000 metric tons (MT) in 2011 to 754,000MT in 2020.

The total value of Mexican berry exports has increased fivefold during this period.

Víctor Manuel Villalobos, secretary of Agriculture and Rural Development of the Government of Mexico, says that, in 2022, Mexico exported 560,000 tons of strawberries, and that the sector provides over 450,000 jobs.

Around 40% of these jobs belong to women in the industry.

Main producing states are Michoacán, where 58% of all berry production takes place, followed by Jalisco and Baja California with a 17% and 12% participation, respectively.

Read more »

Peruvian Citrus Exports Down Through First Half of Season

By |

Since the Peruvian citrus campaign began, shipments have not been able to exceed those of 2022.

Following a bit over half of the season, Peruvian citrus exports have declined, instead of increasing a forecast, according to Agraria.

So far this season, Peru has exported 86,765 tons, reflecting a 15 percent decline when compared to the same period last year. Through July, citrus shipments totaled 7,126 tons, which was 58 percent less than the same period last year.

In this same week, the product reached 21 destinations, of which the three main ones concentrated 69 percent of all shipments. These were the U.S., with 44 percent participation; followed by China, with 13 percent; and the Netherlands, with 12 percent. It should be noted that, unlike last year, shipments to the U.S. decreased considerably, going from representing 70 percent in 2022 to 44 percent this year.

Shipments to the U.S. totaled 3,144 tons, which was 3 percent less than the previous week and 74 percent less than in 2022. As for Peruvian exporters, the ones that stood out the most in this place were Procesadora Laran S.A.C. (22 percent) and Consorcio de Productores de Fruta S.A. (15 percent).

Peru shipped 916 tons to China, 10 percent less than the previous week, but 64 percent higher than last year. This has been a market in which little by little Peruvian citrus has been able to gain more of the market.

Finally, exports of 861 tons were shipped to the Netherlands, which was 5 percent higher than the previous week and 12 percent higher than 2022.

Read more »

California Enters Peak Stone Fruit Shipping Season

By |

The California stone fruit season is at its peak. Favorable growing conditions have increased supplies compared to years past, according to Markhon Cooperative of Salinas, CA.

Peaches

  • The season will wrap up in mid-October
  • Size is dominated by large sizes (54- and 56-count fruit)
  • Quality is very good: sugar levels typically range from 10 to 11 Brix
  • Expect steady markets and ample supplies over the next four to six weeks

Plums

  • The California season is at its peak
  • California supplies are expected to run through the first week of October
  • Size is dominated by small fruit (60- and 64-count stocks)
  • Expect very good quality; sugar levels typically range from 14 to 17 Brix
  • After the California season wraps up, plums will be sourced from Chile until mid-January

Nectarines

  • The season will wrap up in mid-September
  • Size is dominated by large sizes (54- and 56-count fruit)
  • Quality is very good: sugar levels typically range from 11 to 12 Brix
  • Expect steady markets over the next three to four weeks

Read more »

Average Volume for Onion Shipments Expected from Columbia Basin, Treasure Valley

By |

Average volume for onion shipments are expected this season from the Columbia Basin, as well as from Treasure Valley, according to extension personnel at Washington State University and Oregon State University.

With total acreage virtually unchanged from a year ago, yellow onions account for about 80% of total onion acreage. Red onions now account for 15% of total Columbia Basin onion acreage, with white onions totaling about 5%.

Columbia Basin’s early onion harvest will likely start in early August, with storage onions beginning at the end of August or early September. Onions will be harvested and put in storage through September and into October.

Most of Washington’s storage onions are grown in the Columbia Basin, with the majority planted in Grant, Franklin and Adams counties.

Onion acreage in the Columbia Basin shared by Oregon and Washington totals about 25,000 acres. Onion harvest begins in the region begins in the late summer and can extend into the fall. Storage onions can be marketed from storage for up to eight months.

Storage onion acreage in the eastern part of Oregon and southwest Idaho, called the Treasure Valley region, accounts for about 20,000 to 25,000 acres. 

Many onions in the Treasure Valley will be shipped to the East, while many of the Columbia Basin onions will move north and south, as well as to export markets.

Read more »

Study Suggests Strawberry Consumption May Benefit Older Adults

By |

Daily strawberry consumption was linked to improved cognitive function, lower blood pressure and higher antioxidant capacity in a randomized clinical trial presented at Nutrition 2023, the annual meeting of the American Society of Nutrition (ASN). 

The study, conducted at San Diego State University, builds on previous research demonstrating the cardiovascular, metabolic and cognitive health benefits of strawberries. 

The double-blind, placebo-controlled study was conducted in 35 healthy men and women, aged 66 to 78. Participants consumed 26 grams of freeze-dried strawberry powder, equivalent to two servings of strawberries daily, or a control powder for eight weeks each.

Following strawberry consumption, cognitive processing speed increased by 5.2%, systolic blood pressure decreased by 3.6% and total antioxidant capacity significantly increased by 10.2%. Waist circumference decreased by 1.1% during both the control and intervention arms of the trial. While consuming the control powder, participants experienced increased serum triglycerides.

“This study demonstrates that consuming strawberries may promote cognitive function and improve cardiovascular risk factors like hypertension,” said Shirin Hooshmand, professor in the School of Exercise and Nutrition Sciences at San Diego State and principal investigator on the study. “We’re encouraged that a simple dietary change, like adding strawberries to the daily diet, may improve these outcomes in older adults.”

Strawberries are a source of many bioactive compounds. In addition to providing 100% of our daily vitamin C needs, strawberries contain heart-healthy nutrients like folate, potassium, fiber, phytosterols and polyphenols.

Previous clinical trials have connected strawberry consumption to improvements in several markers for cardiovascular disease, including reduced total and LDL cholesterol (TC) and lower blood pressure. 

The link between strawberry consumption and brain health has also been well explored in both clinical and population-based studies. Strawberries and pelargonidin, a biochemical primarily found in strawberries, were associated with a reduced risk of Alzheimer’s dementia in studies conducted at Rush University. Long-term observational studies, including the Health Professionals Study and the Nurses’ Health Study, found that strawberry consumers had lower rates of cognitive decline.

Read more »

Strong Imports of Mexican Mangoes Continue this Season

By |

Strong imports of Mexican mangoes are predicted amounting to nearly 3 percent on a weekly basis, according to The National Mango Board.

Imports reached a peak in the second week of May with 17,900 tons, a 50% increase over the same period in 2022.

The highest volume of mango imports by the U.S. from Mexico is from February through September. 

Imports from Brazil usually start in August, followed by supplies through March from Central America, Ecuador, Peru, Haiti, Australia, and more recently Jamaica and Colombia.

This results in mangoes being a year-round product in the United States.

In the NMB’S latest crop report, the Kent  variety leads with a 56% share of total shipments into the U.S., reaching 969,090 boxes by the last week of June.

It is followed by Ataulfo, with 22.5%, and Tommy Atkins, with 19%.

Mexico is the leading mango exporter into the U.S., with over four million 8.8 pound boxes shipped.

Weekly mango volumes  to the U.S. rose by 17.72% marking a 565,866-box increase at the end of July with over 3.7 million boxes.

Ciruli Bros. of Rio Rico, AZ, reported recently there was six consecutive weeks of at least four million boxes in sales, and the Mexican season should conclude in late September for the company.

The Mexican mango season began the first week of January and will run until the first week of October with a projection (up to week 40—Oct. 7, 2023 – ) of approximately 101 million boxes. 

Read more »

Panama Canal Traffic is being Reduced by Drought

By |

In light of the ongoing dry season and its prolonged effects, the Panama Canal has informed its customers that it will maintain a draft of 44 feet for the next few months.

The measure will be in place for “as long as weather conditions do not vary significantly from our current projections,” the Panama Canal Authority says in a recent release.

This comes as the canal seeks to continue providing reliable and sustainable service for its clients.

An average of 32 vessels per day will be allowed transit with this temporary condition, as changes in precipitation patterns are expected to affect water availability in Panama.

Drought conditions in the canal are part of a global phenomenon, with the World Meteorological Organization warning about a high probability of El Niño setting in before the end of this calendar year.

The Canal has been implementing procedures to improve water efficiency in its operations, while conducting studies to identify long-term solutions to climate variability. However, the severity of the drought, coupled with its recurrence is historically unprecedented.

The Panama Canal remains committed to ensuring safe and reliable operations in the short term and optimal services for years to come.


Read more »

California Almond Shipments Expected to be Up Slightly from a Year Ago

By |

Despite rainy winter and a cool spring, the California Almond Objective Measurement Report published by the U.S. Department of Agriculture’s National Agricultural Statistics Service (USDA-NASS) estimates that the 2023 crop will come in at 2.6 billion pounds, 1% percent above last year’s 2.57 billion pounds.

This new estimate is up 4% from USDA-NASS’s subjective forecast back in May and comes after one of the wettest winters on record, limited bee flights because of rain and wind, and a cool spring. 

USDA’s Forecasted yield is 1,880 pounds per acre, down 20 pounds from 2022 and the lowest since 2009.

The slight increase comes partly because of larger nut size and despite difficult conditions, USDA-NASS’s report says, “Record level rainfall and unprecedented stormy conditions hindered bee pollination activity in orchards across the state. Cooler than normal temperatures continued through early summer and delayed the maturity of the crop.”

“Almond farmers have faced a series of challenges in recent years, and this wet, cool winter and spring created different obstacles after three years of drought. Yet the forecast for a larger crop shows the resiliency of California almond orchards,” said Richard Waycott, president and CEO of the Almond Board of California (ABC). 

“Almond farmers have worked hard while dealing with higher production and financing costs and a bloom with highly compromised bee flight hours. They are very thankful, however, for the abundant rain and snow which vastly improved the water situation, at least for now, and for shipping logistics that continue to improve. The perseverance of California’s almond farmers is admirable as is their commitment to meet future growth in global demand with high-quality California almonds.”

The forecast for the average nut set per tree is 3,953, 3% down from 2022. The Nonpareil average nut set of 4,004 is 1% more than last year. 

The average kernel weight for all varieties sampled was 1.67 grams, up 14% from the 2022 average weight. The Nonpareil average kernel weight was 1.69 grams, up 9% from last year.

The survey was conducted from May 26 to July 3 and 1,824 trees were sampled in 912 orchards, 32 more orchards than in 2022. USDA-NASS conducts the annual Subjective Forecast, Objective Report and Acreage Report to provide the California almond industry with the data needed to make informed business decisions.

Read more »

Wisconsin Celery Shipments Underway from Green Lake County

By |


Markesan, Wisconsin — Alsum Farms & Produce grower partner, Trembling Prairie Farms Inc. is in full swing harvesting new crop Wisconsin Celery starting this week with the season expected to go through the first week of October. Located in the muck soils of Green Lake County, Trembling Prairie Farms is a family farm owned and operated by John and Connie Bobek along with their four children in Markesan. For more than a decade the Bobek family has been growing and packing locally grown celery serving the Midwest retail and foodservice markets. .

In 2012, Trembling Prairie Farms started with 3 acres of celery and today has expanded to over 45 acres. The farm starts with a celery variety that grows well in the Wisconsin climate. Peak freshness, a milder flavor and snappier crunch are all advantages of this locally grown celery variety.

The process of growing celery starts in local greenhouses in late February to early April and is then transplanted in 12 different plantings. Celery planting begins on May 1 with the goal of the last planting to be in the ground by July 1. Trembling Prairie Farms Wisconsin Grown Celery is available for distribution with ample volume of all sizes and packs available for the next 11 weeks, including:

  • 24 count naked or sleeved
  • 30 count naked or sleeved
  • 36 count naked or sleeved
  • 18 count celery hearts

 “We’re happy to be able to bring our locally grown Wisconsin Celery to the market,” says John Bobek, farmer and owner of Trembling Prairie Farms. “Whether paired with peanut butter as a healthy kid-friendly snack, or chopped in a salad for an outdoor gathering, Wisconsin Celery offers a fresh taste for consumers looking for locally grown in the Midwest.”

Two medium stalks of celery offer many nutritional benefits including vitamin C, potassium and 2 grams of fiber all for only 20 calories. In the U.S., consumers eat on average six pounds of fresh celery annually. With its many nutritional benefits and versatility this crunchy, fiber-filling vegetable is delicious and good-for-you.  

For more information on Trembling Prairies Farms Wisconsin Grown Celery, go to www.tremblingprairiefarms.com or www.alsum.com.

# # #

Trembling Prairie Farms

Trembling Prairie Farms is a grower of Wisconsin red potatoes, yellow and red onions, and celery on 500 acres of rich muck soil in Green Lake County. Trembling Prairie Farms, a family owned and operated business, has grown to become a major supplier of Wisconsin-family farmer grown vegetables serving retail and foodservice markets.

About Alsum Farms & Produce

Alsum Farms & Produce Inc. is a leading fresh market grower, packer and shipper of Wisconsin grown potatoes, onions, and provider of fresh, quality produce. Established five decades ago and headquartered in Friesland, Wis., Alsum Farms & Produce is a vertically integrated family-owned farm, packing facility and logistics company providing quality produce. Committed to sustainability and stewardship of the soil, Alsum Farms grows 3,000 acres of Wisconsin Healthy Grown® Certified Alsum Potatoes along with pumpkins.

Read more »