Archive For The “News” Category
Potatoes are the fourth largest food crop grown in the world behind rice, corn and wheat. Most people think of Idaho when they consider potatoes — and 
rightfully so when it comes to russets. However, the Red River Valley, located on the borders of North Dakota and Minnesota are the leaders in red potato shipments.
If you haul produce, I wouldn’t suggest trying to get to the frozen tundra this time of the year. The folks are great, but the weather can be brutel. Besides, there’s no shortage of equipment to move the red potatoes. However, a friend of mine this week was in Fargo. You never know where the next load is going to take you sometimes.
The Red River Valley will be shipping red potatoes into the spring. Product is holding up well in storages. Most shipments are ususally to midwest and eastern markets.
Grand Forks, ND to Chicago – potatoes are grossing about $1800.
Even when the recent deadline for a Teamsters strike at the Hunts Point Terminal Wholesale passed and the local’s workers kept right on working, I wasn’t a bit surprised. Not only has there not been a work stoppage over the past 25 years, I’m familiar enough with the wholesalers, and particularly their leaders, to know if it’s at all possible, a strike would be avoided. It was. A new contract was reached.
Nothing is more critical to the tenants on Hunts Point than to keep those 53-foot reefer units rolling into the terminal.
No trucks, means the wholesalers lose customers (retail supermarkets, foodservice, etc.) who decades ago decided to buy directly from produce shippers whenever they could. These customers, as is the case with terminal markets across the United States, often buy 70, 80, 90 percent of their fresh fruits and vegetables direct – primarily because they see cutting out the middlemen as saving money. Of course, wholesalers make good arguments such as a produce market offers wide selections of product, ranges in quality, color, taste, size and even price advantages.
My first visit to Hunts Point was about 25 years ago and I estimate I’ve been back there 50 times since. During this period I always made it a point to visit with as many truckers as possible who were delivering fresh produce on the South Bronx market. I also got to know many of the Hunts Point wholesalers on a first name basis.
Through the years Hunts Point developed a horrible reputation in the trucking industry. Complaints ranged form kicked loads, phoney claims to get reductions in freight rates, to delays in unloading, many times as an excuse for wholesalers to take advantage of free refrigerated warehousing at the expense of the driver. Then there were issues ranging from lack of restroom facilities to restaurant accomodations.
Over the years in my talks with drivers and wholesalers, many of these issues have been addressed. Now when talking with truckers about Hunts Points, there stil complaints, but I also hear a lot more good things than I used to. Driver shortages, refusals to return to deliver to wholesalers who “dump” on you, tend to change things. If these issues do not improve, then trucker is at fault for returning to take another “beating.”
When you get down to it, Hunts Point in some ways is no different than other wholesale terminal markets. Some companies are simply better than others whether talking about their dealings with transportation, or dealing with their suppliers and customers.
One consistency I’ve noticed over the years, is the people who are leaders on Hunts Point such as Matthew D’Arrigo (D’Arrigo Bros. Co. of New York) and Myra Gordon, both of the Hunts Point Terminal Produce Cooperative Market, are first class individuals. I could also say the same about a number of other people at Hunts Point.
When you have people of intergrity in leadership positions, I knew if there was any way a union conflict could be resolved, it would be accomplished. It’s also another reason why some truckers have fewers complaints about Hunts Point.
Driver turnover rates among the nation’s fleets has gone up and continues to be high. It has increased with small trucking companies too, but remains well below the big carriers.
The American Trucking Associations reports turnover rate for large fleets to be at 89% for the third quarter of 2011. That is up 10% from the second quarter rate of 79%. The driver turnover rate has risen 50 percentage points since the start of 2010.
Meanwhile, small truck load fleets had a 57% driver turnover rate, up 10 points since the third quarter of 2008.
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Goal is Reduce Potential Disputes with Produce
January 17, 2012 – The North American Produce Transportation Working Group (NAPTWG), representing produce transportation stakeholders from 
associations and industry groups across North America, announced today the availability of the new North American Produce Transportation Guidelines. The document integrates multiple existing transportation guidelines into one best practices document which can be used throughout North America to ensure the ongoing vitality of the carrier sector. These best practice guidelines were agreed to by various stakeholders in the produce supply chain and were reviewed and endorsed by the Blue Book and the Dispute Resolution Corporation (DRC) to ensure compliance with industry trading guidelines for North America. The NAPTWG aims to provide necessary guidance for seamless product movement and to ensure that the produce industry continues to have sufficient access to carriers to meet the needs of the produce industry in North America.
“The new guidelines represent an incredible volume of work by industry associations and produce organizations involved in the transport of fresh produce,” noted David Dever, President and CEO of Sun World International and United’s NAPTWG Chairman. “We all know how crucial ensuring the vitality of our carrier industry is to the long term viability of the North American produce industry and this is one tool to support that.”
Best practices are generally-accepted, informally-standardized techniques, methods or processes that have proven themselves over time to accomplish given tasks. By following proper processes, checks and testing, a desired outcome can be delivered more effectively with fewer problems and unforeseen complications. In addition, a “best” practice can evolve to become better as improvements are discovered. The NAPTWG compilation of best practice guidelines is intended to be an evolving document to guide efficiency in produce transportation.
“Transportation carriers are facing increasing costs and complexities today,” said David Owen, President of National Association of Small Trucking Companies (NASTC). “If we don’t all play our part in assisting carriers and making produce a desirable industry to do business in, we could face shortages of carriers in the future. The guidelines should be used by all to ensure that doesn’t happen.”
The document is available free of charge to the produce industry and carriers at www.naptwg.org.
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The North American Produce Transportation Working Group (NAPTWG) is comprised of more than 25 national and regional produce industry associations, transportation service providers, grower/shippers and perishable receivers. In cooperation with United Fresh Produce Association, NATWG works to provide best practice resources to those involved in the fresh produce supply chain.
Food Lion stores over the years developed a pretty bad reputation for the way it treated truckers delivering produce and other items to its distribution 
centers. Some say this situation has improved over the past five years or so.
Whatever the case, Food Lion’s parent company Delhaize America is planning to shutter 126 stores and slash 49,000 jobs, plus discontinue its Bloom banner, which some stores operated under, according to the Food Lion website. Delhaize has 1,600 stores operating in 16 states, mostly in the Southeastern part of the country. Among its operations are Bottom Dollar Food, Food Lion, Harveys, Hannaford Supermarkets, Reid’s and Sweetbay.
Closings of the stores should take place within the next month.
Union workers at the Hunts Point Terminal Wholsale Market in Bronx, NY have not went on strike in 25 years, but they are threatening to if a labor agreement is not met with market representatives. If you are on your way to the nation’s largest wholesale produce receiving facility just be aware the laborers are saying they’ll strike at 12:01 a.m. on January 17th.
Negotiations are continuing and you can bet Hunts Point wholesalers will do what it takes to stay open even if the strike occurs. How smoothly trucks would move in and out of the market is something to keep an eye on.
Two Texas produce firms have recently filed for Chapter 11 bankrupty and if they stay in business with this protection from creditors, produce haulers should be extra cautious doing business with them.
The produce companies in San Antonio, TX are in question are Delta Produce LP and Superior Tomato and Avocado. The firms, which are believed to be related, are facing compliants from the Perishable Agriculture Commodities (PACA). As of December 29th around $600,000 in PACA claims have been filed by other produce firms, which are owed monies.
Delta has filed a $100 million lawsuit against H.E. Butt Co. seeking damages against the retail chain alleging coercion by a buyer, according to a filing in the U.S. Bankruptcy Court in the Western District of Texas. H.E. Butt has denied the claims stating Delta failed to keep up with a changing marketplace.
The PACA comes under the umbrella of the U.S. Department of Agriculture and requires U.S. produce companies buying or selling fresh produce in commercial quanities to be licensed by USDA. This helps to provide protection to the produce industry when dealings between produce companies cannot be resolved between themselves.
Trucking is not afforded these same protections and often have no recourse when monies are owed, except through the courts. This can be costly, not to mention the inconvenience of fighting a company for money who may be located in a different state thousands of miles away. Also, PACA protected produce companies get their monies first, if any is left in a bankruptcy.
Bill Martin of haulproduce.com for decades has been calling for trucker protections under the PACA.
Why was haulproduce.com created? Simply put, there is a need. That need is good, accurate, reliable and timely information. This knowledge can be used 
by those who are transportating fresh fruits and vegetable to improve their bottom line, making business operations more profitable.
From pre-cooling melons, to proper loading procedures, maintaining refrigeration temperatures and humidity levels, to timely deliveries of perishable items, hauling produce is a different ballgame.
The harvesting and shipping of fresh produce items in a particular area can range from three to four weeks from year to year, depending on the weather. Likewise, the start and completion of shipments of those same items can vary each year.
Additionally, volume from this same district area can change greatly from one year to the next. Then there is always the concern over quality of the product. It is important that the party to whom you are delivering has no surprises relating to quality, size, color, and taste of the product.
Having this information at your finger tips reduces your chances of having the load rejected, or facing a deduction in your freight rate.
It is important to know where loads will be available from season to season. Loadings of lettuce, for example, come from different shipping areas, depending upon the time of the year. Shifts from one shipping area to another may have gaps in some instances, but may overlap in others. These shipping areas also may vary significant in volume from year to year and even during the season itself.
In addition to all these factors, rates for hauling produce can fluctuate greatly, even from the same area to the same destination depending upon everything from truck availability to produce volume and the perishable nature of the product.
In essence, to be a good produce trucker, it requires being a cut above most of types of other haulers. And being among the best, depends on knowing the business and using the information available. Thus, haulproduce.com is here to help.
If these Texas produce firms remain in business, produce haulers should be extra cautious.
Two produce companies in San Antonio, TX are making news with multiple sources regarding possible bankruptcy fillings. The operations in question are Delta Produce LP and Superior Tomato and Avocado. The firms, which are believed to be related, are facing compliants from the Perishable Agriculture Commodities (PACA). As of December 29th around $600,000 in PACA claims have been filed by other produce firms, which are owed monies.
The PACA comes under the umbrella of the U.S. Department of Agriculture and requires U.S. produce companies buying or selling fresh produce in commercial quanities to be licensed by USDA. This helps to provide protection to the produce industry when dealings between produce companies cannot be resolved between themselves.
Trucking is not afforded these same protections and often have no recourse when monies are owed, except through the courts. This can be costly, not to mention the inconvenience of fighting a company for money who may be located in a different state thousands of miles away. Also, PACA protected produce companies get their monies first, if any is left in a bankruptcy.
Bill Martin of haulproduce.com for decades has been calling for trucker protections under the PACA.