Archive For The “News” Category
Produce loading opportunities from the Lower Rio Grande Valley of Texas are expected to increase in coming years as a new highway connecting West Mexico to south Texas opens in the new few months. Now another project is expected to increase produce loads from Mexico to markets in the USA and Canada.
A plan to change how millions of boxes of mangos are treated for the Mexican fruit fly and bacterial contaminants could be a boon Valley’s growing produce industry — and ultimately produce haulers.
The USDA has lifted a procedural barrier allowing construction along the U.S.-Mexico border of facilities that blast mangos and other fresh produce with a highly focused beam of electricity, eliminating pathogens and pests. McAllen, TX becomes the first city in the Southwest with the technology.
The E-beam facility will be built at 23rd Street and Military Highway on land owned by the Abasto Corp., directly across the street from the 42-acre Warehouse Kingdom development. The valley’s E-beam facility should create a competitive advantage for the McAllen metro area as it seeks to gain a larger share of the Mexican produce market. But consumers across the nation could also benefit from a larger array of high-quality fruits and vegetables that last longer on the shelf.
The high-tech procedure is supposed to virtually eliminate the chance of pests and pathogens such as fruit flies crossing the border.
The $22 million facility, which will eventually employ up to 200 people, will use a non-nuclear alternative to gamma-based irradiation to sterilize fruit and vegetables crossing the border in both directions.
To kill microorganisms, produce has traditionally been treated with a gas called ethylene oxide that is being phased out for health and environmental reasons. But a shift to treating produce in hot water baths created its own host of problems, among them a reduced shelf life and lower success in killing contaminants.
ScanTech’s technology eliminates both problems by essentially electrocuting the fruit without generating heat. The irradiation method uses less energy, does not involve dangerous radioactive materials and is supposed to be as safe to operate as a household microwave.
It is difficult to find anyone in the trucking industry more aware of the checkered past of truck brokers than Jimmy DeMatteis. For this reason, and simply because it is the right thing to do, Jimmy goes out of his way to make sure those people behind the wheel of the big rigs get a fair shake.
As president of Des Moines Truck Brokers, Inc. (DMTB) he knows the reputation of the company’s 43 year history is on the line with each load. It all began in 1951 with his dad, James A. DeMatteis (Jim Sr.) hauling produce. By 1960 he was a small fleet owner and three years later became a broker of exempt commodities.
Jim DeMatteis Sr. with LJ Mack circa 1960
Jim Sr. started DMTB in 1969 and remained a one-man operation until 1984 when James R. DeMatteis (Jimmy) came aboard.
“We have always been advocates for small carriers and their success,” Jimmy says. To back up his claim, just go the company’s website at: www.dmtb.com where it states, “Our reputation for paying carriers is second to none”. DMTB has a policy to pay all carriers within one day of receiving the carrier’s freight bill.
Jimmy has served on the board of the Transportation Intermediaries Association (TIA) for the past 6 years “because I believe in our industry and I want to see us do it right.”
Jimmy also serves on the Executive Committee of The Alliance for Safe, Efficient Competitive Truck Transportation (ASECTT) whose main focus is addressing “all the fallacies and flaws in CSA-2010.” He notes the Federal Motor Carrier Safety Administration (FMCSA) decided it was “going to ram this program down the throat of every motor carrier.” As a result ASECTT filed a lawsuit. It resulted in the FMCSA having to reevaluate the way it rated carriers through alerts in its safety management systems. The ratings system has resulted in safe carriers being rated as unsafe. “We want FMCSA to do their job. Their job is to determine the safety fitness of the motor carrier community. Instead they have chosen to deputize the motor carrier, shipper, and broker communities to do their work”
“We want the FMCSA to state they are the party responsible for a carrier’s safety fitness, not the shipper, not the broker,” he states. “Shippers are putting things in contracts based on CSA scores that black list many good small trucking companies. Carriers get put out of business because shippers or brokers won’t work with them as they are deemed unsafe by these scores or alerts.”
The problem comes from the FMCSA basing its program on percentages. “No matter how many bad carriers you get rid of, you are always going to have 35 percent that are going to have alerts. This is very damaging to small carriers. It works well for large carriers and gives them a distinct advantage,” Jimmy states.
Based inNorwalk,IA, DMTB recently moved into new facilities shared with a sister company, Capital City Fruit, with whom it has a 43-year relationship.
Jimmy emphasizes small trucking operations are the backbone of the trucking industry.
“I want to think we at DMTB get it. We treat others with respect, we pay fast and take time to talk to our drivers,” he says. Des Moines Truck Brokers has a policy if a driver walks into its office with bills of lading and the staff has not met that trucker before, everyone stands up, and introduces themselves and shakes his or her hand.
“We in the logistics industry all do important work, but at the end of the day, the person doing the most important work, is that guy or gal out there behind the wheel,” Jimmy states.
For more information about Des Moines Truck Brokers, Inc. go to www.dmtb.com or call 800-247-2514
At least for some shippers in the Red River Valley, it was looking a little dim in September due to drought. However, October rains have increased yields — and loading opportunities have improved for those who haul red potatoes out of the region, located on the borders of North Dakota and Minnesota.
The last of the spuds are now being dug. It’s looking like valley potato shipments for the 2012-13 season will be quite close to the five-year average. Currently, only about 250 truckloads a week or being shipped, but loadings are still increasing as the focus moves from harvest, and storage to shipping.
From central Wisconsin, russet potato loads are averaging around 500 truckloads per week…..Peak shipments of cranberries for the Thanksgiving holidays are now underway from central Wisconsin.
Nebraska continues light loadings of potatoes. In the southwestern part of the state potatoes are being shipped from the Imperial, Neb area. The other most active part of the state is around O’Neill in the northeastern part of the Nebraska.
In the Lower Rio Grande Valley of South Texas, grapefruit and orange shipments have been slowly ramping up. Because California’s season ended early, there’s been good demand for Texas citrus, although loadings have been limited and there’s not much citrus yet to be found in the retail stores.
If you are loading grapefruit or oranges in South Texas, it should be a little more simple than 20 years ago when there were at least two dozen citrus companies. That number has shank to only four, primarily due to mergers and acquisitions. This should be reducing the number pick ups required for some hauls.
Central Wisconsin potatoes – grossing about $3400 to Houston.
Red River Valley red potatoes – about $4300 to Orlando.
The USA needs around 111,000 more drivers to move the nation’s freight, according to Doug Stobiber, vice president of produce transportation for L&M Transportation Services of Raleigh, NC. He was speaking at the produce industry’s largest gathering recently, the annual convention of the Production Marketing Association (PMA), held in Anaheim, CA
While Stoiber notes better pay and higher freight rates for drivers is important, he placed just as much emphasis on truckers being repected.
He points out there is a shortage of qualified drivers and it is only going to get worse, primarily because fewer younger drivers are entering the industry, combined with greater numbers of older truckers retiring. While the average age of the commerical driver is 48 years old, the ones under 30 years of age amount to less than 10 percent.
Current law requires commerical driver’s operating interstate be at least 21 years old. President Obama is in favor of permitting states to lower the age limit to 18 years old. While supporters of this proposal are looking at ways to increase the number of drivers with CDLs (commerical drivers license), opponents point out the high accident rate among teenage automobile drivers, saying they are too young and immature to drive a big rig.
Starting this year, the nation’s largest generation (baby boomers) are reaching 65 years of age. They are retiring at a rate of 10,000 each day.
Stoiber made some economic comparisions between hauling dry freight, compared to fresh produce. There are liabilities as a produce trucker. Those remain until the papers are signed and the receiver accepts the load. The use of a refrigeration unit on a trailer adds an additional $1,500 in costs to a coast-to-coast haul. Overall, there are fewer risks with dry freight. Even with all the economic factors involved in produce hauling, Stoiber emphasizes the need for the produce industry giving drivers more respect. This will go along way in attracting more drivers to haul produce.
“Truckers have been viewed as obstacles to doing business instead of partners in the supply chain,” Stoiber said.
He encouraged the audience to pay higher freight rates and to think in terms of price per consumer unit instead of $1,000 per load. It comes down to more than just a good freight rate. Loyalty and respect are very important to truckers, he said.
Stoiber also addressed issues brought forward by a group encourging better practices in dealing with produce truckers. The North American Produce Transportation Working Group (NAPTWA) earlier this year released guidelines for making fresh produce hauling more attractive. Tips range from decreasing detention time when loading and unloading, to allowing drivers to watch loading.
The best practices are regularly reviewed and updated as federal regulations and other factors change the way truckers are allowed to operate, said Stoiber, who is a member of NAPTWA. The best practices are free on the working group’s website at www.naptwg.org.
Few things in the trucking industry are frowned upon more than lease-purchase plans. Go to work for a trucking company, lease a truck from that carrier with the idea of one day owning it. Failure for the deal to work out is blamed on everything from low driver pay to high interest rates and the carrier not providing the driver with enough miles The truck eventually goes back to the carrier, when the driver can’t make the payments. Then the process is just repeated.
Shaun Smith of Sanford, FL has been with KLLM Transport Services, Jackson, MS since last January. The 12-year trucking veteran has entered into a lease-purchase plan with the large carrier and says it is working out fine. He is making good money, logging a lot of miles and is making a living for his wife and four kids, who ages range from two to 14 years old.
The 34-year-old driver says he is averaging 3,000 miles a week, or about 150,000 miles a year. He drives a 2008 Freightliner with a Detroit DD15, pulling a 53-foot trailer with a Carrier Ultama XTO X Series reefer unit.
Shaun enjoys trucking because he gets to see a lot of the country, plus make a decent living while doing so. His primary complaint is with heavy traffic, especially in large cities such as New York and in California.
He started trucking after finishing high school, got married, and then went into water well drilling in Mississippi. He then moved to Florida, working in a warehouse for a fast food company. But trucking remains his first love.
“KLLM is a good company. I’ve got one more year before this truck is paid for,” Shaun says. “I got it on a lease-purchase plan. If you have the money to buy a truck right off the lot, then that’s a good way to do it. Under a lease-purchase plant you had better have a good carrier.”
Shaun had just delivered a load of soda pop from California to Oklahoma. He was waiting to pick up a load of muffins in Tulsa for delivery to Concord, NC.
He also hauls a lot of produce loads.
“I have no problem with hauling fresh fruits and vegetables. You have to keep a close eye on the temperature. But I like hauling it as well as anything,” he says.
As far as being the road so much, Shaun observes, “You have to have a strong mind and be able to be away from your family. It can be hard. But it is a good career.”
Troy Pecka has been in the trucking business for nearly a quarter of a century 
and has pretty much seen it all, or at least come fairly close to it. There is something to be said for someone who started out trucking out as a 19-year-old, and now owns his own small fleet at the “ripe” old age of 43.
The owner of Troy Pecka Trucking Inc. doesn’t have the time to get behind the wheel of a big rig anymore as much as he’d like, in part because he’s dealing with all the rules and regulations to keep the drivers of his 15 trucks and three leased owner operators doing what they do best – truck.
Troy is following in the footsteps of his dad who started trucking at age 18 and didn’t stop until his was 76.
Troy’s small fleet, based in East Grand Forks, MN, specializes in hauling a lot of loads of frozen foods and fresh red potatoes to the Southwestern and Southeastern USA. Return trips lean heavily towards mixed fresh produce going into Edmonton, Alberta.
When asked what rules and regulations in trucking he disliked most, Troy would not commit to any particular ones. “All of these things increase your cost of operation,” he notes.
There could be the refusal of the Federal Motor Carrier Safety Administration (FMCSA) to delete inspection reports from a driver’s record, even after that driver is found not guilty by the courts.
Or how about the FMCSA’s flawed enforcement program in CSA’s Safety Management Systems. There have been reports of safe drivers being listed as unsafe in the system.
Another example, could be the Federal highway legislation passed last July. It calls for the FMCSA to require electric on-board recorders (EOBRs) in all heavy duty trucks. Many in trucking are concerned it will lead to driver harrasment by authorities. This could involve electronic recording of a driver’s hours of service, vehicle location (through a GPS), with information available to law enforcement.
It is examples such as these which makes it more difficult to get good qualified drivers. He says the older drivers are leaving the industry and there are not nearly enough young drivers coming on board. After all, long haul trucking certainly is not an 8 to 5 job.
Despite all the government red tape, Troy still enjoys the business. He just doesn’t have the time to truck as much as he used to, although taking command of one of his big rigs to someplace like Fargo isn’t out of the question.
“I just can’t get it (driving) out of my blood,” he states.
One of his favorite trucks (pictured) is a 2007 red conventional Kenworth. It houses a 475 hp Caterpillar diesel, riding on a 260-inch wheelbase with a 13-speed transmission. He also like the 72- sleeper featuring all the amenities. It pulls a 53-foot Utility trailer housing a Thermo King reefer unit.
On any given day there will 100 or more trucks either loading or unloading on the Atlanta State Farmers Market. Most of those loads involve fresh fruits and vegetables.
The original market was actually located on Atlanta’s West End district in 1939 before moving to its current location in 1959. It has since expanded into a 150-acre compound housing everything from cold storages, docks, offices for wholesalers, brokers and others, as well having a resturant, police force and other agencies and facilities.
The Atlanta produce market is owned by the state of Georgia and operated by the Georgia Department of Agriculture Markets Division. It is located a middle-class industrial district about 10 miles south of downtown Atlanta and only a couple of miles from Hartsfield-Jackson International Airport.
Rail lines crisscross the property. The complex is just off the east side of Interstate 75 and only a couple of blocks south of Interstates 85 and 20, providing easy access from the to the Southeastern USA.
The market’s Oak Room restaurant has a large, varied menu with good food, which of course serves produce fresh from the marketplace.
Georgia has about a dozen state farmers scattered around the state, which are home to more than 150 companies employing 3,700 farmers, packers, retailers, receivers, and staff with an estimated payroll over $75 million. The Atlanta market is home to 85 percent of those businesses. In 2009, those markets brought in receipts totaling almost $1 billion. The Atlanta market brought in more than half that amount and operates in the black with revenues of almost $6 million last year.
Georgia ranks number on in USA pecan pecan shipments and the loads should just keep increasing in coming years. Georgia 
growers have enough new trees in the ground to increase production by about 50 percent between now and 2020.
The state shipped 125 million pounds last season. This year it was thought volume would be around 70-75 million , but that figure has now been revised to least 100 million pounds. Enough new pecan trees are now planted in Georgia to increase loads to 150 million pounds by 2020.
Shipments this year have started 10 days to two weeks earlier thanks to a mild winter, followed by a mild summer.
In May, Georgia pecans were added to the American Heart Association list of certified heart-healthy foods, earning the right to display the AHA Heart-Check mark
The on-again, off-again exclusive lease negotiations between the city and the Hunts Point Terminal Produce Market have been extended for the third time, this time through October 31st, according to a recent article on Crain’s New York Business.com.
Hunts Point is the world’s largest wholesale terminal market. Located in New York City’s, South Bronx, it is a cooperative with 115 merchants. Thousands of refrigerated big rigs deliver loads of fresh fruits and vegetables to the market each week from across the USA, as well as from Canada and Mexico.
The extended negotiations are between the Economic Develpment Corp. and the Hunts Point co-op. Hunts Point officials have been threatening to move the humongus facilty to New Jersey for years.
The incentive is a public hearing the merchants requested of city council members to discuss the city’s Business Integrity Commission, which has regulatory authority over the market. The hearing is set for Oct. 23.
Last June the federal government offered $10 million to help modernize Hunts Point. The market, which opened in 1967, faces many challenges ane the one state-of-the-art terminal is now showing its age.
Buildings are in need of renovation and a shortage of cold storage has many companies storing fresh produce in trailers parked in front and/or in back of their units. Loading docks are not refrigerated.
There are complaints trucker access into and out of the market is poor and that roads are in disrepair or just cannot handle the heavy traffic.
Everyone agrees on one thing: something has to be done. Numerous negotiations, talks, meetings, task forces and committees over the years failed to come to a solution. Politics. governments and red tape all contributed to a slow moving process.
New Jersey has aggressively made bids to move Hunts Point to the Garden State. However, the Hunts Point co-op continues negotiating with New York City on rebuilding the facility at its current location. In reality, most Hunts Point tenants prefer remain right where they are.
The current 10-year lease on the market expired in May 2011, and on June 19, 2012, the federal government offered $10 million to help modernize the large market, but first the market’s merchants and the city must agree to a new lease.
The merchants in reality have little use for New York City’s Business Integrity Commission stating the agency is assessing needless fees and penalties for various infractions, including parking violations within the market. The situation reached an impasse in late August when the merchants decided not to renew their exclusivity agreement to negotiate a new lease with the city, citing their differences with the commission as the reason.
But don’t hold your breath, it will probably be a cold day in hell before Hunts Point uproots to New Jersey, or anyplace else.
While Texans tend to boast about how big everything is in the Lone Star State, it is a major shipper of fresh produce, ranking in the top 10 for its volume with fresh fruits and vegetables. Many Texas produce shippers also have invested in farming operations in Mexico, and a lot of the product crosses the border into the Lower Rio Grande Valley for distribution throughout the USA and Canada.
The valley, and more specifically, Pharr, TX will be even more important in the future as a distribution point for Mexican grown produce. It is located on Highway 281 which runs north all the way into Canada. Also of importance is the 3.2-mile-long Pharr-Reynosa International Bridge connecting Mexico and south Texas. It is the longest port-of-entry bridge.
While Pharr remains relatively small with a population of 75,000 residents, the city has purchased 90 acres just west of the bridge with aim of developing a produce district with warehouses for produce destined for shipping throughout North America.
Pharr also will gain importance with the completion of the Autopista Durango-Mazatlan cross continental Mexican highway. It is a 143-mile-long stretch of highway scheduled for completion by the end of this year. It was built with the intention of trucks hauling West Mexican produce to ports of entry in Texas. The new highway ends very near Pharr.
The new road is supposed to reduce transit times of trucks from West Mexico by a full day to points in the eastern half of the USA and Canada.
The state of Texas, not including Mexico, grows and ships over 70 different fruits, vegetables and nuts. It is the fourth ranking shipper of watermelons in the USA, accounting for 15 percent of the country’s watermelons. This time of the year Lower Rio Grande Valley grapefruit becomes a major item for loads.
The Lone Star State also is a major grower/shipper of onions, cabbage, spinach, and carrots.