Archive For The “News” Category

Fuel and Surcharge Costs Continue to Pressure Logistics Markets

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Geopolitical tensions in the Middle East, particularly between the United States and Iran, are continuing to affect global logistics markets through higher fuel costs, risk surcharges, and capacity pressure.

According to Shypple, while the sector has already adapted to longer transit times caused by rerouting around the Cape of Good Hope, the current market environment is adding further pressure on freight costs and supply chain planning.

The company said freight markets remain volatile. Asia-Europe rates are declining on some routes as carriers lower prices to fill vessels, while rates from India and the Middle East continue to rise. Fuel and insurance costs are also increasing through higher Bunker Adjustment Factors and War Risk Surcharges.

Shypple procurement analyst Dennis Wietsma said importers are increasingly being forced to choose between long-term contracts with added surcharges or volatile spot markets.

“Do you opt for the security of a long-term contract, knowing you will still pay emergency surcharges on top of it? Or do you dare to ride the volatile spot market, where rates might drop, but you pay top dollar the moment a new geopolitical escalation occurs?”

According to the company, one of the biggest operational challenges is unreliable ETA data from carriers. Shipping lines are still calculating transit times based on former Suez Canal routing, resulting in delays being added later in the shipment process.

“In a market where shipping lines offer less control and transparency, independent track & trace is no longer a luxury, but a necessity,” said Tim de Groot.

The report noted that many non-food importers are moving away from just-in-time logistics and building inventory buffers of up to three months to reduce supply risks.

For fresh produce importers, however, long-term storage is not an option. According to Shypple, refrigerated cargo sectors such as fruit, vegetables, and plants are relying more heavily on fixed shipping allocations and stable trade routes from Central America and South America.

Shypple account manager Lesley van de Water said real-time shipment tracking is becoming increasingly important for supply chain management.

“You can’t prevent changes from happening, but thanks to the tracking, you can adjust immediately.”

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Record Shipments of Avocados are Coming from Mexico

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The US avocado market continues to expand in 2026, supported by strong import volumes, especially from Mexico, and modest domestic growth.

According to the USDA’s Fruit and Tree Nuts Outlook (March 2026), California is expected to produce 330 million pounds of avocados in the 2025–26 marketing year, a one percent increase from the previous season. About 94 percent of this crop consists of Hass or Hass-like varieties, reinforcing their dominance in the US market.

Despite this growth, the US avocado market remains heavily dependent on imports. In 2025, the United States imported a record 2.87 billion pounds of fresh avocados, marking a seven percent increase from 2024 and surpassing the previous record set in 2023.

Mexico alone accounted for 83 percent of import volume and 88 percent of total import value, highlighting its critical role in supplying the US market year-round.

Supply conditions in early 2026 have further shaped the market. Between January and mid-March, avocado shipments from Mexico were 24 percent higher than during the same period in 2025. In addition, larger avocados accounted for 50 percent of shipments, up from 40 percent a year earlier.

This increase in both volume and fruit size has placed downward pressure on prices, with average shipping-point prices for larger Hass avocados falling to around $1 per pound, roughly one-third of the price seen a year earlier.

Seasonal imports from other countries also influence the US avocado market. In 2025, Peru supplied 218 million pounds, accounting for about 7 percent of total shipments, with most arriving between June and August. Colombia contributed an additional four percent, with shipments spread more evenly throughout the year. These imports often coincide with California’s peak season, increasing overall supply and contributing to lower prices.

Overall, the USDA report shows that the US avocado market in 2026 is characterized by record import dependence, increasing supply, and falling prices. While these trends benefit consumers by increasing availability and affordability, they also create competitive pressure on domestic producers, particularly in California.

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Regulatory Whiplash: How the Fight Over Freight Emissions is Strangling the Supply Chain

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By Makenna Christensen ALC Logistics

For over half a century, the California Air Resources Board (CARB) has leveraged its unique ability to secure federal EPA waivers to set emissions standards that have dramatically reduced pollution and improved air quality across California. While CARB deserves credit for its historic accomplishments, its recent trajectory has sparked concern. The agency’s mandate to achieve carbon neutrality in the freight and logistics sector will be nearly impossible without widespread, bipartisan buy-in. Further, without a massive expansion of our electrical grid and a full-scale overhaul of supporting infrastructure, we risk placing an impossible burden on the carriers that keep goods moving across the United States.

Compounding this pressure is a federal government locked in a decades-long battle over climate policy. As federal waivers are granted and revoked with each change in presidential administration, the resulting regulatory whiplash makes long-term business planning nearly impossible. 

When President Trump took office last year, he made clear that many Biden-era waivers would not survive his second term. Rather than simply revoking them, his administration worked with Congress to successfully invoke the Congressional Review Act (CRA) against three specific EPA waivers. These CRA resolutions not only void the EPA waivers, but they also permanently ban the EPA from issuing any ‘substantially similar’ rules without formal approval from Congress. California responded by filing a lawsuit against the federal government that challenges the constitutionality of the resolutions; the case is ongoing.
Faced with a federal roadblock, California lawmakers are attempting to circumvent the federal government entirely with Assembly Bill 1777. This legislation would give CARB and other air regulators the power to regulate “indirect sources of pollution.” By labeling warehouses, railyards, and ports as ‘pollution centers,’ the state shifts the burden of emissions reduction squarely onto the shoulders of shippers and receivers across California. If passed, AB 1777 will likely face intense litigation.
For many shippers and receivers, these ‘indirect source rules’ are more than just a legislative threat; they are a present-day reality. In recent weeks, CARB has quietly ramped up enforcement of its Transport Refrigeration Unit (TRU) regulations. Under these rules, large facilities receiving refrigerated shipments must either report every TRU that enters their gates or sign a declaration, under penalty of perjury, that they will not permit non-compliant units on-site. 
Ultimately, state and federal regulators remain deadlocked in a high-stakes political chess match. But it isn’t the politicians who will suffer the consequences; it’s the U.S. supply chain and everyday consumers who are left to navigate the chaos.
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Makenna Christensen graduated from Marquette University in 2022 with a Bachelor of Science in Marketing and Human Resources. In July of the same year, she joined the Allen Lund Company as a Software Marketing Coordinator for ALC Logistics. She is a proud alumna of the Fresh Produce & Floral Council’s Apprenticeship Program, Class of 2024.

makenna.christensen@alclogistics.com

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Bee Sweet Citrus Launches Digital Check-in System for Drivers

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Fowler, CA based Bee Sweet Citrus shipping department has launched an online check-in platform for drivers picking up fruit at their facility. This custom digital portal enables seamless two-way communication between drivers and shipping clerks, ensuring a hassle-free pickup experience, the press release read.

“Our new, custom-built shipping portal offers an easy and effective way for drivers to check in for their pick-ups prior to arrival,” stated Bee Sweet Citrus Shipping Manager Salvador Rivera. “By using our portal, drivers minimize unnecessary wait times at our facility, and the system is conveniently accessible on both desktop and mobile devices.”

Before the portal, all drivers checked in at Bee Sweet Citrus’ shipping office using paper forms to provide shipment, driver, and product details. These forms required manual verification by the company’s shipping clerks, making the process time-consuming—especially if errors occurred.

Each day, up to 150 carriers move through Bee Sweet’s shipping department. With 24 available docks and cross-docking capabilities, maintaining an efficient check-in process is essential for drivers, customers, and Bee Sweet Citrus’ shipping team.

“After a driver checks into our portal, a clerk can digitally confirm their information and assign a pick-up time,” Rivera continued. “An authorization code is then sent to the driver to enter the facility, followed by further instruction regarding their shipment.”

The portal also allows drivers to select their preferred language for all communications, further supporting Bee Sweet’s commitment to a smooth check-in process.

To access the portal, drivers should visit https://shipping.beesweetcitrus.com/. For questions, call Bee Sweet’s shipping department at 559-834-4214.

A grower, packer and shipper of premium California citrus, Bee Sweet Citrus is a leader in today’s agriculture industry. Founded in 1987, Bee Sweet Citrus is a family owned and operated company and provides approximately 10 different citrus varieties to its consumers! Located in the heart of California’s Central Valley, Bee Sweet is focused on innovation, sustainability and customer satisfaction.

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Truckload Freight Rates Hit Two-Year Highs as Diesel Costs Surge

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Truckload freight volumes rose across all major equipment types in March while a sharp jump in fuel costs pushed spot and contract rates to their highest levels in more than two years, reported DAT Freight & Analytics, provider of the industry’s leading load boards and freight analytics.

The DAT Truckload Volume Index (TVI), which measures demand for truckload services, increased month over month, reflecting strong early-season demand to move retail goods, produce, and construction and industrial equipment:

• Van TVI: 253, up 12% compared to February
• Reefer TVI: 196, up 7%
• Flatbed TVI: 314, up 18%

Spot pricing: Fuel drives freight rates higher

National average truckload spot rates increased in March, driven almost entirely by fuel cost recovery:

• Spot van rate: $2.52 per mile, up 11 cents from February
• Spot reefer rate: $2.97 per mile, up 9 cents
• Spot flatbed rate: $3.09 per mile, up 37 cents

Spot rates, which are negotiated between the freight broker and carrier as all-in rates with no separate fuel surcharge, were substantially higher across all modes year over year. The average spot van rate was up 53 cents from March 2025, the reefer rate was up 70 cents, and spot flatbed rates increased 56 cents.

Van and reefer spot linehaul rates—the portion of the truckload rate excluding fuel—surged toward the end of March as shippers rounded out Q1, but actually declined month over month, falling 9 cents and 13 cents, respectively. Flatbed was the exception: the average linehaul rate rose 13 cents.

“Linehaul rates were still under pressure through most of March, which tells you demand hasn’t fully caught up yet,” said Ken Adamo, DAT Chief of Analytics.

The national average diesel fuel surcharge surged across all equipment types, compressing linehaul margins even as total rates climbed. Last month’s average van fuel surcharge rose from 41 cents to 61 cents per mile, the highest since late 2022. The reefer surcharge climbed 22 cents, to 67 cents per mile, and the flatbed surcharge rose 24 cents, to 73 cents per mile.

“For context, monthly average van fuel surcharges averaged around 40 cents per mile throughout most of 2025,” Adamo said. “The March reading represents a 50% increase from that baseline.”

Contract rates: Moving higher with fuel

Contract freight rates increased sharply in March, driven largely by the same fuel-cost dynamics that affect the spot market.

• Contract van rate: $2.72 per mile, up 20 cents month over month
• Contract reefer rate: $3.10 per mile, up 22 cents
• Contract flatbed rate: $3.43 per mile, up 30 cents

As shippers and carriers navigate RFP season in this environment, Adamo offered a pointed assessment of current trucking industry trends and freight pricing strategies. “Right now, the smartest players are pricing contracts based on where they believe the market is going and being transparent about those assumptions, leaving room to adjust if conditions change,” Adamo said.

For previous TVI reports, visit: https://www.dat.com/news-releases

About the Truckload Volume Index

The DAT Truckload Volume Index measures monthly changes in loads with a pickup date during that month. A baseline of 100 equals the number of loads moved in January 2015, based on data from DAT RateView, part of the DAT iQ freight analytics platform, which tracks rates paid on actual shipments. Benchmark spot rates reflect invoice data for hauls of 250 miles or more, offering a consistent view of truckload demand and spot rate trends across the United States and Canada.

About DAT Freight & Analytics

DAT Freight & Analytics operates the DAT One truckload freight marketplace; Convoy Platform, an automated freight-matching technology; DAT iQ analytics service; Trucker Tools load-visibility platform; and Outgo factoring and financial services for truckers. Shippers, transportation brokers, carriers, news organizations, and industry analysts rely on DAT for market trends and data insights, informed by nearly 700,000 daily load posts and a database exceeding $1 trillion in freight market transactions.

Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Headquartered in Portland, Oregon, DAT continues to set the standard for innovation in the trucking and logistics industry. Visit dat.com for more information.

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Soaring Diesel Fuel Prices Driving Increased Transportation Costs

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U.S. diesel fuel prices are rising anywhere from 11 to 49 percent depending upon what part of the country one is looking at, according to the International Fresh Produce Association.

For an industry built on speed and temperature control, these increases are not just incremental—they are structural. Cold chain logistics, from refrigerated trucks to ocean containers, depend heavily on fuel stability. As surcharges are added across ocean, air, and land transport, the cost of simply moving fresh produce is climbing in real time.

There are early signs of adjustment. Freight markets are resisting sharper increases due to underlying demand softness, with some carriers offering discounts below announced rates. However, structural risks remain. 

Truckers are certainly feeling the pain. According to the U.S. Department of Energy the average cost of number 2 diesel fuel for April 13th was $5.39 per gallon, compared to $4.80 on March 9. A year ago the average price was $2.15.

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Vista Vineyards launches with year-round table grape program

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Vista Vineyards of Bakersfield, CA has announced the launch of a leadership-owned table grape company built to deliver a consistent, 52-week supply through integrated farming, packing, and sales operations.

By following the sun across California, Mexico, and South America, Vista coordinates timing, varietal performance, and volume to support uninterrupted retail programs throughout the year.

The company brings together long-standing operations under one structure focused exclusively on table grapes, with key members of Vista’s leadership team having company ownership. This ownership structure reinforces long-term alignment, clear accountability, and commitment to retailer partners.

Vista Vineyards operates as a grower, packer, and shipper with proprietary licensed access to Sun World and BLOOM FRESH varieties across its growing regions. This integrated model allows Vista to coordinate production decisions in service of consistent, retail-ready programs year-round.

“Buyers want continuity and accountability,” said Oliver Sill, Vice President of Sales at Vista Vineyards. “Our leadership team has worked together for years across these regions. Now we’re operating as one company, with clear execution and responsibility behind every shipment.”

Vista Vineyards operates across complementary growing regions to stay in season year-round, maintaining consistent supply and quality:
● California (July–December): Established domestic acreage supporting peak U.S. production.
● South America (November–April): Growing operations that extend supply beyond North America, with further information coming soon.
● Mexico (May–July): Licensed partner growers operating under Vista Vineyards’ proprietary variety sales rights.

This investment structure supports consistent availability of premium green, red, and black seedless grapes throughout the year, with production decisions aligned to retail demand, varietal performance, and shelf consistency.

“We’ve spent years building relationships and infrastructure across these regions,” said Kevin Andrew, CEO. “This structure lets us operate the way we’ve always believed the business should run — with ownership, accountability, and a long-term view. We’re building something we believe in.”

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Peruvian Avocado Industry Looks to Balance Huge 38 Percent Supply Surge to Secure Stable Prices

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The Peruvian avocado industry continues to expand, with rising export volumes reflecting both improved productivity and stronger international demand. As shipments grow, industry leaders are increasingly focused on maintaining market balance and ensuring that supply growth aligns with global demand, according to USDA Market News.

Peru exported 722,754 tons of Hass avocados in 2025, representing a 38 percent increase year-on-year, according to trade commission PromPerú. This growth reflects the sector’s continued development and expanding presence in international markets.

Importantly, the increase has not been driven by the rapid expansion of planted area. Instead, industry representatives emphasize that gains have come primarily from productivity and orchard management improvements.

Arturo Medina, general manager of ProHass, noted that the expansion reflects “consistent improvement in productivity, technical management, and commercial planning rather than a substantial rise in surface area.”

In fact, the total area planted with avocados remained relatively stable at 83,529 hectares in 2025, suggesting that higher yields and improved coordination across the industry have been the main drivers of export growth.

While Europe remains dominant, Peru has been gradually diversifying its export destinations. Shipments to the United States increased by more than 50 percent, while exports to Asian markets rose nearly 40 percent, reflecting growing demand in countries such as China, Japan, and South Korea. Industry leaders increasingly view Asia as a key long-term growth market.

According to Medina, “Asia is no longer a complementary market, but a strategic growth axis for Peruvian avocado.” Efforts to expand into these markets have included improving phytosanitary standards and adapting logistics to support longer shipping distances. As export volumes increase, industry participants emphasize the importance of coordination across the supply chain to maintain stable market conditions.

The increased fruit volume also poses challenges for market planning. “The Hass avocado market is quite strong at the moment, but from mid-March on, effective collaboration with distribution channels will be essential to maintain prices,” said Fernando Hidalgo, manager of Cultivemos.

Managing shipment timing and destination diversification will continue to play a key role in maintaining price stability. The Peruvian avocado sector is increasingly characterized by greater coordination, diversified markets, and improved productivity, according to PromPerú. The country’s ability to expand exports while maintaining market stability highlights the industry’s growing maturity.

At the same time, balancing supply growth with demand will remain a key priority as production continues to increase in the coming years. For exporters, the focus is shifting from rapid expansion to strategic market management—ensuring that the rising Peruvian avocado supply can be absorbed smoothly across global markets.

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California Pistachio Volume Increases are Expected to Slow over Next 5 Years

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The California pistachio industry’s volume is expected to slow over the next five years, while farmgate value is expected to increase, Rabobank’s market insights branch, RaboResearch, reports.

According to the financial entity, the industry is entering a mature phase, with bearing acreage growth expected to level off by 2030. As output declines, prices are projected to increase, which forecasts say will push the industry over the $3 million valuation this season.

According to RaboResearch, the average annual California pistachio output will remain below two billion pounds this season, and production in the next five years will track under that threshold.

The 2025/26 season is projected to reach 1.6 billion pounds, a 40 percent year-over-year increase, though still below the initial 1.8 billion-pound industry estimate.

For 2026/27, the report projects a more conservative output range between 970 million and 1.23 billion pounds.

This season’s California pistachio projected outcome contrasts with the 2020/21 and 2022/23 seasons, when supply exceeded consumption and pricing suffered.

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How the Dalilah Law Could Impact the U.S. Transportation Market

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By Michael Riser ALC Boise

In June 2024, a five-year-old child, Dalilah Coleman, was injured in a traffic collision involving a semi-truck in Adelanto, California. The driver of the truck was reported to be an undocumented immigrant. During the annual State of the Union Address on February 24, 2026, President Trump referenced the incident and called on Congress to consider legislation referred to as the “Dalilah Law.” The proposed policy would seek to prevent U.S. states from issuing commercial driver’s licenses (CDLs) to individuals without lawful immigration status.

Following the address, Jim Banks (R-IN) introduced legislation in the U.S. Senate reflecting the proposal. According to industry reporting, if the bill were passed by Congress and signed by the president, it would take effect immediately upon enactment.

Key provisions described in coverage of the proposal include:

  • Prohibiting states from issuing CDLs to undocumented immigrants or individuals with certain temporary or non-qualifying immigration statuses.
  • Requiring states to revoke existing CDLs held by individuals who do not meet the new eligibility criteria.
  • Implementing English-only requirements for CDL knowledge and skills testing.
  • Mandating that all current CDL holders complete a recertification process within 180 days.

The U.S. trucking industry relies heavily on a vast network of commercial drivers to maintain freight movement across supply chains. Out of a total workforce of approximately 3.5-3.8 million CDL holders, FreightWaves estimates indicate that foreign-born drivers now comprise roughly 18-19% of the workforce, or approximately 630,000-720,000 individuals. This demographic shift is significant when viewed over time. According to Logistics Management, foreign-born drivers numbered just 316,000 in 2000. Despite that figure having doubled over the last two decades, the sector faces a structural driver shortage estimated at 80,000-100,000. To keep pace with demand, the industry is projected to require up to 1.2 million new drivers over the next decade, according to the same source. 

The downstream effects could include increased costs as capacity tightens and pricing pressures rise. At the same time, trucking companies that remain unaffected by the proposed legislation may find themselves in a favorable position. With fewer competitors operating under the new constraints, demand for their services is likely to grow, giving them greater leverage to negotiate higher rates. This dynamic could ultimately shift bargaining power within the market, amplifying cost disparities across the supply chain.

If enacted, the proposed legislation could affect the supply of eligible commercial drivers in the U.S. truckload market, and changes to licensing eligibility and recertification requirements could result in some drivers being removed from the workforce. Ultimately, the scope of the impact from the proposed “Dalilah Law” would depend on several factors, including the final legislative language, implementation timelines, regulatory enforcement, and how our industry adapts over time.

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Michael Riser graduated from Miami University in Oxford, Ohio in 2012. He has built his career in sales, working across both the logistics and packaging industries. Throughout his career, he has focused on strategic business development, supply chain solutions, and expanding customer partnerships. In the spring of 2023, Michael joined the Allen Lund Company as a National Sales Manager, where he is based in the Boise, Idaho office.

michael.riser@allenlund.com

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