Archive For The “News” Category
Changes in federal hours of service regulations, along with stricter rules by the California Air Resources Board (CARB) are two primary reason refrigerated produce loads have increased this year by as much as 10 percent, according to DAT Solutions, a load board network based in Beaverton, OR.
Over 99 million transactions annually and bases rate estimates on $24 billion of freight bills, according the DAT website, and bases rate estimates on $24 billion of freight bills.
The hours-of-service changes require drivers to stop for rest breaks more often, meaning it takes longer to reach destinations such as distribution centers, many of which were located years ago based on drive times allowed under the old regulations.
Some (truckers) have gone to a relay system where the first one drives so far, then another driver picks up the trailer and takes it on. The downside, particularly with temperature-sensitive loads like produce, is that you don’t have the continuity of one driver taking care of the load for the whole trip,” Montague said.
Higher rates also are attributed to the tightening rates emissions regulations by CARB, which apply not only to trucks picking up and delivering produce in the state, but those merely driving through California.
Montague said as of early June, many of the highest rates in the nation were for trucks going into California. The DAT data for the week ending May 31 showed per mile rates of $2.44 in California for reefers. “At least 90% of the fleets that haul fresh produce have 10 trucks or less,” Montague said, adding that many produce haulers are individual owner-operators with only one truck. “The changes in regulations really make it hard for the smaller operators because of the costs for upgrades. The overall message is a lot of smaller truckers are having trouble.”
The U.S. organic market has hit new heights of $35.1 billion in sales last year, according to a survey from the Organic Trade Association (OTA).
The survey shows the organic industry recorded 11.5 percent year-on-year growth in 2013, which was the fastest growth rate in five years.
“The U.S. organic market is experiencing strong expansion, with organic food and farming continuing to gain in popularity. Consumers are making the correlation between what we eat and our health, and that knowledge is spurring heightened consumer interest in organic products,” OTA CEO Laura Batcha said in a news release.
The Organic Industry Survey, conducted and produced by the Nutrition Business Journal, showed the fruit and vegetable category continued to lead the sector with $11.6 billion in sales, up 15%.
The OTA highlighted that with organics now making up more than 10 percent of the fruits and vegetables sold in the U.S., the US$1.5 billion in new produce sales represented 46% of the organic sector’s $3.3 billion in new dollars.
The relatively small organic condiments category posted the strongest growth at 17 percent, reaching $830 million.
“The entire organic industry needs to rally around helping consumers better understand and appreciate all the values that certified organic brings to the table,” Batcha said.
“Consumer education is critical to grow the organic industry.”
FOLSOM, CA — Customer interest in healthy dining options is pushing colorful fruits onto restaurant menus, according to Technomic, which surveyed more than 300 foodservice professionals.
Though they are normally found in breakfast items, blueberries are showing up in dished served all throughout the day. They are reported as the third most-purchased fruit, trailing only strawberries and apples, according to a press release.
“We learned from a top 500 chain menu survey earlier this year that blueberry mentions on menus boomed 97 percent between 2007 and 2013,” says Mark Villata, executive director for the U.S. Highbush Blueberry Council (USHBC). “Now, this usage and attitude study gives us insight into why. That is, what are the drivers influencing decision makers to increase their use of blueberries?”
When asked why they like using blueberries, the survey reports that chefs and operators say:
*Blueberries are a healthy option for customers (82 percent)
*Blueberries are low-labor and easy to use (82 percent)
*Blueberries give the entire operation a health halo (58 percent)
*Menu prices can be higher for items that include blueberries (42 percent)
“Blueberries are delicious, healthy and versatile, and add to our menu,” says David Goldstein, executive chef at Los Angeles-based Sharky’s Woodfired Mexican Grill. “Our menu is loaded with fresh, healthy foods so when we put together our Harvest Quinoa Superfood Salad, we added dried blueberries. These days, I think customers expect to find blueberries in the healthiest options.” In addition, Sharky’s offers handmade, freshly prepared lemonades; one of their newest is Blueberry Mint made with fresh blueberries.
A survey conducted by Hebert Research in 2013 showed that 99% of Americans believe blueberries are healthy, according to a press release. With demand for healthy menu items increasing, it will be interesting to see what dishes start showing up on menus.
Here’s a shipping update from various areas across the country, where there should be some loading opportunities. Here’s also a cautionary note about some splitting of Oregon cherries due to recent rains.
California Tomato Shipments
Vine ripe tomato shipments from the Oceanside, CA area have started, with romas to get underway in August. Both types of tomato shipments will continue through November.
Arkansas Tomato Shipments
A lot of tomato shipping areas around the country claim to ship home grown quality tomatoes, but consumers certainly know the difference. This season, there’s certainly an exception. Haul Produce is referring to vine ripe tomatoes from Arkansas. This beautiful, tasty product is currently being shipped from the Hermitage area and will continue through July.
Peach Shipments
New Jersey peach shipments get underway within the next week or so and should yield 30,000 tons to 35,000 tons of fruit from the state’s 5,500 acres of trees. Peach loadings will remain available through most of September.
Northwest Cherry Shipments
A monthly record of 10.3 million boxes of cherries were shipped from the region in June. The volume was more than double the June 2012 tally of 4.7 million boxes — part of that year’s record crop….Rainfall in the last week of June has resulted in some splitting of Oregon cherries, but damage varied by grower. So use caution and pay attention to what is being loaded on your truck. It could save you a claim or rejected load. The amount of damage to cherries is estimated a about 10 percent of the fruit being lost.
By Bully Dog
American Falls, ID -July 18th at the Bannock County Fairgrounds, SCT/Bully Dog will look for the perfect blend of speed, raw power and unmatched performance. With $20,000 available in cash and prizes, it’s well worth the time to register as a participant in multiple events!
For instance, if the Dyno isn’t your style, maybe your true calling lies in the racing lanes with all the other drag racers, or maybe you can find that sweet spot between traction, speed and power when you hook up in the pulling class. Out there somewhere, we believe there could be a truck and driver that will win every event, and bring home the ultimate Triple Crown prize of $5000 cash!!
We hope that this is the year of the Dog Days Champion. Could it be you? Aside from the outrageous performance drivers looking to make their mark on the track, SCT/Bully Dog is sponsoring many more events for everyone else to enjoy. The whole family can look forward to rides on the Monster Truck, given out all afternoon.
Throughout the day, there are booths set up selling SCT/Bully Dog merchandize, giving out product information and plenty of opportunity to immerse yourself in the world of diesel racing. SCT/Bully Dog is the industry leader in developing full-featured aftermarket enhancements for an unprecedented number of vehicle applications. Founded in 1999 and guided by the idea that every vehicle possesses untapped potential, Bully Dog equips gas, diesel and heavy duty drivers with the tools to unlock their rides’ potential power and economy gains. Visit us online at www.bullydog.com
by Giumarra Companies
LOS ANGELES – As part of its effort to explore alternate transportation methods, Giumarra announces its first load of product delivered by railroad: watermelons.
Giumarra Nogales shipped watermelons grown in Hermosillo, Sonora, Mexico to Jessup, Maryland by 50-foot refrigerated railcar in May. This marks the first time in decades produce grown in Mexico was shipped via train.
By working with Nogales-based Pacific Brokerage, Giumarra coordinated a full shipment of the melons, which arrived at their destination in good condition. One railcar will fit up to three truckloads of product.
“Although our delivery had a few challenges, we feel the overall success of the trip demonstrates that watermelons are sturdy enough to handle rail shipment, and it may be a viable option for us in the future,” says Gil Munguia, division manager of Giumarra Nogales.
Giumarra’s Cesar Pacheco, sales manager of Giumarra Nogales, worked with J.B. Manson of Pacific Brokerage for over three years to seek a railroad company that wanted to be involved with the project. Their efforts found traction with the state of Arizona’s “Arizona/Mexico Commission” and the Port of Tucson.
Through the efforts of Mr. Pacheco and Mr. Manson, Union Pacific and CSX Corporation agreed to participate in a pilot program with Giumarra.
“With the success of our first run, we hope to push skepticism to the side and grab the attention of the railroads for future projects,” says Mr. Pacheco. “We can move one ton of cargo more than 500 miles on a single gallon of diesel using rail. We believe this will help minimize the carbon footprint of long-haul shipping.”
Giumarra plans to ship honeydew melons, winter squash, and cucumbers within the rail pilot program. The next planned shipment is headed for Chicago, Illinois on a 64-foot railcar.
(Below is a press release from 2 potato organizations. However, since it was released, Mexican potato growers filed a lawsuit to stop U.S. spuds from entering Mexico and an injunction preventing such action was implemented. So for now, if you are planning to haul US potatoes to the Mexican border, it isn’t going to happen, at least for now.)
By National Potato Council and United States Potato Board
Washington, D.C./Denver, CO — The National Potato Council (NPC) and the United States Potato Board (USPB) are pleased that effective May 19, 2014; the Mexican government has implemented its final rule allowing U.S. fresh potatoes to enter all of Mexico. This action is part of a bi-lateral agreement that facilitates trade in fresh potatoes between the two countries.
The NPC and USPB support this bi-lateral trade agreement as it will benefit potato growers in Mexico and the United States, as well as the processing industries and consumers in both countries. Per capita potato consumption in Mexico is lower than the United States, so there is room for this market to grow. The USPB will conduct market development programs in Mexico which will be designed to increase consumption of all potatoes in Mexico.
Questions on the requirements for shipping to Mexico should be directed to the NPC or USPB.
The National Potato Council is the advocate for the economic well-being of U.S. potato growers on federal legislative, regulatory, environmental, and trade issues.
The mission of the United States Potato Board is to increase demand for potatoes and potato products through an integrated promotion program, thereby providing US producers with expanding markets for their production. For complete information about the programs, visit www.uspotatoes.com.
No one doubts cargo theft is a big problem, but do you know what type of cargo is the biggest target, which states lead in these type of thefts and when they are most likely to occur?
These are some of the questions that were answered by Sal Marino, vice president of CargoNet, who is based in New Jersey. He was speaking at the 2014 United Fresh Produce Association’s annual convention and exposition in Chicago recently.
The leading target for thieves are food and beverages, accounting for 25 percent of cargo thefts, followed by electronics at 14 percent. Others include household goods (11 percent), apparel and accessories (10 percent), containers (9 percent), metals (8 percent), with miscellaneous items making up the balance.
Leading America in cargo thefts is the state of California (23 percent), followed by Texas (19 percent) and Florida (10 percent).
When is cargo theft most likely to occur? 21 percent of the incidents happen on Friday, 19 percent on Saturday and 14 percent on Sunday. Marino says the weekends are more risky because a lot of trucks have to wait to get unloaded in the upcoming week. It also depends where the truck is parked over the weekend.
Marino said most thefts occur at warehouses and distribution centers. Truck stops ranked fourth as locations for cargo theft.
When it comes to cargo theft of produce items, nuts make up a third of the top 10 items. Almonds ranked first as the primary target for theft, followed by tomatoes, avocadoes, grapes, apples, bananas, mangoes, pineapple, pistachios and walnuts.
When a cargo theft occurs, Marino said it is very important report the theft to authorities as soon as possible and get the word out about the loss. The more specific details you provide the better.
It was in early June that truck broker Kenny Lund saw the spot market on produce freight rates hit $10,000 for loads between California and the East Coast. While part of the reason was seasonal volume increases for fresh fruits and vegetables, and truck availability, he saw other factors contributing to the rise in rates.
Lund was speaking at the 2014 convention and exhibition of the United Fresh Produce Association in Chicago June 11th.
The vice president, support operations, for the Allen Lund Co. Inc. of LaCanada, CA cited the recently completed 72-hour U.S. Department of Transportation check points held across the country. This was delaying truck schedules.
Another factor was the CARB (California Air Resources Board) regulations, which Lund said were resulting in more truckers refusing to come to California. It takes a minimum investment by truckers of $8,000 to comply with CARB regulations.
“It is impossible to be compliant and move significant amounts of refrigerated product into and out California,” Lund stated
He noted less than 30 percent of refrigerated carriers are compliant with CARB and truckers simply do not have the money to become compliant.
In an effort to assist produce haulers, he noted Allen Lund Co. provides $1.5 million a week in advances to drivers.
Lund, who has been with company founded by his father and namesake 25 years, said there were over 50,000 carriers in the United States, but the average trucking company has less than six trucks.
“90 percent of the trucking companies have six or less trucks,” he noted. At the same time the percentage is very low of trucks having team drivers.
Getting more specific, Lund said refrigerated carriers are dominated by owner operators and companies with less than five trucks.
As for CARB, Lund said he has “fought tooth and nail with them” (California bureaucrates). Since the CARB rules were implemented in 2004 fines have been extended to brokers, shippers, receivers and specifically to drivers.
“It (CARB rules) has driven a lot of drivers away from California,” Lund stated.
He also was critical of hours-of-service regulations, and particularly the 34-hour restart. While the restart requirement may be okay for local trucking, it is not good for long haul drivers.
During a question and answer session, Lund said the reason more large refrigerated carriers do not haul produce is because “it comes down the driver having a stake in that load. I see a lot of large carriers get in and out of hauling produce. It comes down to not having enough good drivers,” Lund concluded.
Chiquita Brands International Inc., is returning to the Port of New Orleans after a 40-year absence.
Based in Charlotte, N.C., Chiquita plans to relocate operations from Gulfport, Miss., to The Crescent City in early 2015. During the mid-1970s, Chiquita, which then did business as United Brands, transferred shipping operations from New Orleans to the Port of Gulfport after importing bananas and other fruit for more than 70 years in New Orleans.
Chiquita is forecast to ship 60,000-78,000 20-foot-equivalent units (TEUs) a year at the New Orleans port. The volume represents a 15% increase in the port’s current container volume. Chiquita plans to handle 30,000-39,000 TEUs of bananas and other fresh fruit at the port as well as export those same volumes of other outbound cargos.
Louisiana was in talks with Chiquita for a decade and to help reduce the port’s increased shipping and handling costs. The state of Louisiana plans to provide the banana giant $1.11 million-$1.45 million or $18.55 per TEU in yearly performance-based incentives.
The port is planning to invest $2.2 million in improvements at a port-owned distribution and ripening facility to be leased to Chiquita As part of the deal, the port also intends to fund $2 million in refrigerated-container electrical infrastructure improvements and rehabilitate a container freight warehouse, according to the release.