Archive For The “News” Category

Blues, Razz and Strawberries Showing Impressive Gains in U.S. Consumption

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Gains in retail per capita consumption for berries have been very strong compared with many other fresh fruits, the USDA reports.

Retail per capita consumption of blueberries has increased 97% in the past 10 years, growing from 1.2 pounds in 2011 to 2.3 pounds in 2022.

Raspberries have shown even more remarkable percentage growth, gaining 192% from 0.3 pounds in 2011 to 0.8 pounds in 2021.

Strawberry consumption also continues to grow, though at a slower percentage pace compared with blueberries and raspberries. Strawberry consumption grew from 4.6 pounds in 2011 to 6.7 pounds in 2021, a gain of 45%.

Here is a list of fresh fruits, with per capita growth since 2011, as reported by the USDA.

Growth in per capita availability from 2011 to 2021: (retail per capita availability in 2021 in pounds, with the percentage change from 2011)

  • Raspberries: 0.8 pound, up 192%.
  • Blueberries: 2.3 pounds, up 97%.
  • Limes: 4.4 pounds, up 86%.
  • Tangerines and tangelos: 6.6 pounds, up 69%.
  • Avocados: 7.9 pounds, up 64%.
  • Strawberries: 6.7 pounds, up 45%.
  • Mangoes: 3.5 pounds, up 44%.
  • Lemons: 4.7 pounds, up 42%.
  • Kiwifruit: 0.7 pound, up 39%.
  • Pineapples: 7.5 pounds, up 38%.
  • Papayas: 1.3 pounds, up 28%.
  • Grapes: 7.7 pounds, up 15%.
  • Total citrus: 25.1 pounds, up 14%.
  • Cherries: 1.3 pounds, up 10%.
  • Total fresh fruit: 131.8 pounds, up 9%.
  • Total non-citrus: 106.7 pounds, up 8%.
  • Bananas: 26.9 pounds, up 5%.
  • Apples: 15.2 pounds, up 2%.
  • Pears: 3 pounds, down 3%.
  • Melons: 19 pounds, down 13%.
  • Oranges: 7.9 pounds, down 18%.
  • Apricots: 0.1 pound, down 21%.
  • Plums and prunes: 0.5 pound, down 42%.
  • Grapefruit: 1.4 pounds, down 46%.
  • Peaches and nectarines: 2.3 pounds, down 47%.

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Survey Shows Grocery Costs Eat up Majority of Consumers’ Monthly Budget

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Enough talk about millennials and their avocado-toast-buying ways — new data suggests every generation is at risk of spending too much cash on their grub.

A poll of 1,800 US adults found, across the board, 48% said their grocery costs are eating up the majority of their monthly budget, followed by utility bills (38%) and credit card debt (37%), according to Talker Research.

Younger Americans seem to be focused on their financial positioning for the future, as well. Thirty-eight percent Gen Zers are delegating the majority of their monthly budget towards loans, while 46% of millennials are likewise spending most of their money tackling credit card debt.

Meanwhile, 45% of Gen X is spending the most on groceries, 43% of baby boomers are paying the most on utility bills and 43% of the Silent generation are forking up the most for their rent and/or mortgages.

TOP 3 MONTHLY BUDGET SPENDS PER GENERATION

GEN Z
Groceries – 48%
Credit card debt – 41%
Rent – 39%

MILLENNIAL
Groceries – 55%
Credit card debt – 46%
Utilities – 44%

GEN X
Groceries – 45%
Rent/mortgage – 38%
Utilities – 38%

BABY BOOMER
Groceries – 47%
Utilities – 43%
Rent/mortgage – 31%

SILENT GENERATION
Groceries – 45%
Rent/mortgage – 43%
Loans – 39%

Survey methodology:
This random double-opt-in survey of 1,800 Americans with bank accounts was commissioned by UserTesting between March 3 and April 12, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).

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Aldi to Add 120 New Stores Nationwide This Year

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Batavia, Ill. – Further solidifying its position as one of the fastest-growing grocers in the country, ALDI is adding 120 new stores this year. At a time when inflation is forcing some retailers to slow growth, or even shutter stores, customers are actively asking for more ALDI locations in their communities.

Known for its unique shopping experience and selection of the best products at the lowest prices, ALDI will have more than 2,400 stores nationwide by the end of the year.

“While inflation is undoubtedly driving unprecedented demand for affordable groceries, we know that once customers experience the ALDI difference, they keep shopping with us, even when the economy improves,” said Jason Hart, CEO, ALDI U.S. “Our growth is led by our customers, and they continue to want more ALDI locations coast-to-coast.”

This year’s planned expansion builds on a banner year in 2022. ALDI opened and remodeled 139 stores, welcomed approximately 9.4 million new customers and drove double-digit growth year over-year as shoppers sought relief from soaring food prices. The grocer is on track to continue that momentum this year, opening 35 stores in the first quarter alone and welcoming 5.3 million new customers to its stores as of April 2023.

ALDI new store openings will span the continental U.S., including the rapidly growing Southeast region where ALDI recently opened its 26th regional headquarters and distribution center in Loxley, Alabama to help support new stores in the area. This year, ALDI will add stores in Baton Rouge and New Orleans, new markets for the grocer.

The brick-and-mortar expansion is part of a larger omnichannel experience designed to make grocery shopping as convenient and enjoyable as possible, no matter how customers prefer to shop, whether in-store, through curbside pickup, or via delivery through shop.ALDI.us or through ecommerce partners DoorDash and Instacart.

As part of its larger commitment to sustainability, the grocer is enhancing new and existing stores with eco-friendly features, including installing rooftop solar panels and eliminating plastic shopping bags. ALDI is also implementing environmentally-friendly refrigerants in its stores, an important move to reduce carbon emissions that earned the grocer recognition from the Environmental Protection Agency (EPA) GreenChill program.

In fact, ALDI has secured more EPA GreenChill store certifications in 2020 and 2021 than all U.S. grocery retailers combined. All of these initiatives recently earned ALDI a top accolade as one of Progressive Grocer’s Top 10 Most Sustainable Grocers.

As part of this national expansion, ALDI will add nearly 2,000 new employees to support the additional store count. As a Certified Great Place to Work and one of Forbes’ America’s Best Large Employers, ALDI will bring its employee-focused culture and above-average industry pay to more markets coast-to-coast.

About ALDI U.S.

ALDI is one of America’s fastest-growing retailers, serving millions of customers across the country each month. When it comes to value, ALDI won’t be beat on price. ALDI has also been No. 1 for price according to the dunnhumby Retailer Preference Index Report for six years running. Since 1976, ALDI has offered a unique shopping experience where customers never have to compromise on quality, selection or value. In fact, 1 in 3 ALDI-brand products are award-winning. Customers can save time and money by conveniently shopping in-store or online at shop.aldi.us. ALDI also proudly serves as a Feeding America Leadership Partner, donating 30 million pounds of food each year in an effort to end hunger in America. For more information about ALDI, visit aldi.us.

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Farmer Friendly Fuel for the Future: Biofuel 2.0

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By Charlie Fabricant, ALC Nashville

In the last few years transportation professionals have been increasingly asked what technologies they are using to reduce freight-related carbon emissions. According to recent polling, 65% of U.S. consumers “worry about climate-change” when purchasing goods, and 71% of workers say that they want to work for a sustainable company. These factors have caused many shippers to look for more sustainable transportation solutions. However, battery-based energy storage is not yet advanced enough for us to solely rely on renewable energy or electric vehicles for our energy and transportation needs. This technological gap has left a market space open for a temporary energy solution in the form of HVO (Hydrotreated Vegetable Oil) biofuels.

Biofuels have been championed by sustainability, agricultural, and national security leaders as a way to decrease carbon emissions, strengthen demand for feedstock crops, such as corn and soybeans, and reduce our dependence on foreign fossil fuels. In addition to the listed benefits over traditional diesel, biofuels can be used in diesel engines without costly capital investments. Unfortunately, early biofuels (FAMEs) like ethanol were found to be corrosive to engines and have conflicting economic and environmental effects. Given these limiting factors, biofuels appeared to have a minimal impact until the emergence of second generation biofuels, or HVOs. HVOs are created using a different process than FAMEs, which produces a more sustainable and stable fuel. HVO biofuel is chemically identical to traditional diesel with the added benefits of reducing emissions by 40-60% and having greater resistance to freezing temperatures. In addition, although HVO fuel is currently 10-20% more expensive than diesel, government incentives exist to make it cost competitive while production is scaled to meet the growing demand. Given that gen I biofuels are now cost competitive with diesel, it will only be a matter of years before HVO prices decrease to similar levels. Finally, and arguably most importantly, biofuels give the United States a greater level of energy independence from the Middle East and Russia since they are mostly produced domestically

Although HVOs seem to be a “silver bullet” for transitioning the USA’s transportation sector to a cleaner future, there is a big catch. Not all HVO fuels are created equally! As with almost any emerging market, academic research and government regulations have not kept pace with technological changes. This delay in knowledge, further exacerbated by budget cuts for important investigators like the EPA, has led to acquisitive corporations pushing dangerous chemicals through regulatory processes under the guise of being “cleaner” than diesel. HVO biofuel is a very promising new technology, but there are certain manufacturers to be wary of. When navigating a new market with such variations in fuel quality and production practices, it is crucial to have a trusted transportation partner like the Allen Lund Company with 47 years of experience building resilient supply chains while supporting our local communities. ALC is currently in conversation with one of the US’ largest energy companies to bring legitimately clean HVO fuel to interested shippers and carriers. Please reach out with any questions. We are excited and ready to start meeting your green shipping needs!

*****

Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and has become a Transportation Broker along with the company’s Environmental, Social, and Governance (ESG) Coordinator.

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Georgia Ports Announce New Savannah Transload Facility

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As part of Georgia Ports’ expansion plans, with more than $1.8 billion in improvements underway, the organization has announced the construction of the new Savannah Transload Facility.

The new facility will be located just one mile away from Garden City Terminal, the largest single-operator container facility in North America.

This 300,000-square-foot transload warehouse will open in July 2023 and will be operated by NFI Industries, a distribution solutions leader.

The authority has indicated that initially, the new facility will be able to handle more than 400 containers a day, totaling more than 150,000 containers a year. 

“Cargo moving through the Savannah Transload Facility will start its inland trek to stores and distribution centers faster, saving customers time,” said Georgia Ports in the announcement. 

During a video announcement of the new facility, Griff Lynch, Executive director of Georgia Ports said: “If we are going to grow big successfully, the entire supply needs to be ramped up together, and that’s what this building is all about.”

Earlier this year, Georgia Ports Authorities had announced a $170 million investment for 55 hybrid-engine rubber-tired gantry cranes to outfit the Port of Savannah’s Ocean Terminal, as it is redeveloped into an all-container facility.

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Drought is Resulting in Panama Canal Vessel Restrictions

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Panama Canal water levels have decreased due to severe drought, forcing vessels to lighten their loads and pay higher rates.

A restriction in weight is occurring at one of the world’s most important shipping routes from May 24, followed by another decrease on May 29.

The Panama Canal Authority (ACP) reports the maximum draft allowed for vessels transiting the Canal from May 24 would be reduced to 13.56m or 44.5 ft.

Effective May 30, the maximum draft allowed for vessels dropped to 44 ft, the authority noted. 

The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April. Lack of rain is threatening to bring levels to historical lows in July. 

Experts have warned new restrictions will likely cause delays and freight cost increases as the Panama string capacities are reduced. 

Hapag Lloyd already announced a PCC (Panama Canal Charge) of $500 per container effective June 1 on all cargo loaded on its Asia to US east coast sailings via the canal.

The canal, which manages around 5% of annual global maritime trade, has been struggling with drought ever since it expanded in 2016 to allow larger ships to pass through its locks.

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Imports into U.S. Ports Fall by About 20% in April

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West Coast container imports plunged 22% compared to a year ago in April, while volumes on the East Coast declined by 20%. This is according to online The McCown Report by shipping expert John D. McCown.

Los Angeles had the biggest drop in April last, down 25%, while the eastern Port of Charlston’s imports fell by 28%.

This comes as the Pacific ports have continued to be burdened by ongoing labor negotiations, thus shifting inbound volume to East and Gulf coast ports.

“If economic conditions improve and we get a labor deal in place, that will definitely help drive our volume,” Gene Seroka, executive director at the Port of Los Angeles, told The Load Star.

The executive also noted the port is currently working at 70% capacity and quoted the unstable state of the global economy as well as the labor issues as the main causes for the slide.

This April was the eighth lowest volume month since the pandemic first began to affect container volumes in March 2020.

The figures still represent an improvement over the previous month, which showed a record 32% decline in imports.

In a May 2 column by McCown, the executive stated that, however grim the latest numbers may seem, the situation could soon be reversed as both inbound and outbound volumes are expected to rise.

“Reasonable estimates show we will need additional terminal capacity in 25 years equal to 5.4 times the biggest U.S. port’s current volume and in 50 years that will be equal to 16.1 times that port’s current volume,” McCown said in his report.

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Lineage Logistics opens Savannah Fresh-Port Wentworth facility

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  • New facility is strategically located near the Port of Savannah and will allow Lineage to process up to 1.4 million pounds of produce per day
  • Facility brings Lineage’s total investment in Chatham County to over $100 million and expands the Company’s growing footprint in Georgia

PORT WENTWORTH, Ga. –Lineage Logistics, Lone of the leading temperature-controlled industrial REITs and integrated solutions providers worldwide, today celebrated the grand opening of its newest facility in Port Wentworth, Georgia.

Savannah Fresh-Port Wentworth is strategically located near the Port of Savannah, the largest single-terminal container facility of its kind in North America and the third busiest container gateway in the U.S.

The 220,000-square-foot facility offers cross-docking services for products to enter and exit the facility on the same day if needed, reducing storage time, creating cost efficiencies, and ensuring consumers receive fresh produce faster. The facility has 23 inbound and outbound lanes that can process more than 40 trucks daily, moving up to 1.4 million pounds of produce per day.

“Today, the demand for port-centric temperature-controlled storage has never been greater and our Fresh solution offerings at Lineage have never been more robust. Savannah Fresh-Port Wentworth will allow us to expand our Fresh offering to new and existing customers and also provides the needed capacity to improve market conditions,” said Jim Henderson, Vice President of Global Sales and Business Development at Lineage.

“The opening of this new facility is a critical step for Lineage as we continuously work to reimagine the world’s food supply chain. We are honored to further our long-standing partnership with Georgia Ports Authority and look forward to building our presence in the state of Georgia, an essential hub for trade and innovation.”

For the past two years, Lineage has worked closely with the Savannah Economic Development Authority, Georgia Ports Authority, and the city of Port Wentworth to construct the Savannah Fresh-Port Wentworth facility in addition to its port-adjacent facility on Tremont Road in Savannah. The Savannah Fresh-Port Wentworth project resulted in a $78 million investment alone that created 65 new jobs, bringing Lineage’s total economic investment in Chatham County to over $100 million. To date, Lineage’s footprint in Georgia spans over 3 million sq. ft.

Savannah Fresh-Port Wentworth was designed to address the overwhelming influx in imports of fresh produce to ports in the Mid-Atlantic that lack the space to keep up with the demand. With proximity to the Port of Savannah, the new facility will enable Lineage to deliver larger quantities of fresh produce more efficiently to serve customers across the Southeast.

“With increasing demand for fresh produce capacity in Savannah, this new, state of the art facility is a welcome addition,” said Griff Lynch, Executive Director of the Georgia Ports Authority. “Lineage Logistics’ suite of services, such as cold-retreatment and onsite CBP inspections, will save time, help prevent loss and, ultimately, bring fresh food to market faster.”

Leaders from Lineage, business partners from the state of Georgia, community leaders from the city of Port Wentworth, and leadership from Georgia Ports Authority attended the facility’s grand opening.

About Lineage Logistics

Lineage is one of the leading temperature-controlled industrial REITs and integrated solutions providers worldwide. It has a global network of over 400 strategically located facilities totaling over 2 billion cubic feet of capacity which spans 20 countries across North America, Europe, and Asia-Pacific. Lineage has industry-leading expertise in end-to-end logistical solutions, an unrivaled real estate network, and develops and deploys innovative technology. This helps increase distribution efficiency, advance sustainability, minimize supply chain waste, and most importantly, as a Visionary Partner of Feeding America, helps feed the world. In recognition of the Company’s leading innovations and sustainability initiatives, Lineage was listed as No. 3 in the 2022 CNBC Disruptor 50 list, named a Deloitte US Best Managed Company in 2022, the No. 1 Data Science company, and 23rd overall on Fast Company’s 2019 list of The World’s Most Innovative Companies, in addition to being included on Fortune’s Change the World list in 2020. (www.lineagelogistics.com)

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California Weather Patterns and the Impact on the Produce Market

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By Patrick Prior, ALC Los Angeles

The unpredictable weather patterns in California this year have profoundly impacted many industries, particularly the produce industry. Prior to January 2023, 80% of California was listed as having severe drought conditions or worse. Now, the Salinas Valley, known as the “Salad Bowl of the World,” has experienced devastating floods and crop damage, resulting in shortages, increased market prices, and substantial financial losses for growers. The flooding has impacted the readiness of spring produce such as lettuce, broccoli, cauliflower, Brussels sprouts, and strawberries. Some areas of the Salinas Valley have received 600% above historical rainfall amounts. Additionally, the rainfall has raised many concerns about California’s ability to properly store water. A significant amount of the rainwater gets washed into the ocean. To better enhance water storage capacity, California is investing in projects such as constructing underground reservoirs and replenishing aquifers. Many feel an underground storage system will be a much more effective way to capture water as opposed to existing reservoirs. California will also be looking to promote more effective water conservation policies. A resilient water storage system will provide a huge relief to California growers, not only to protect from flood damage but to have more water resources available during heavy drought periods. 

The Salinas Valley holds roughly 450,000 plantable vegetable acres and supplies 80% of the country’s vegetable production from April to July. The total crop and infrastructure damage is estimated to exceed $500 million, per the Produce News. Many planted crops have been lost, and the fields need time to dry out before farmers can replant. This has added significant complexity to operations, and growers still have customer requirements to meet. Many growers have responded quickly to combat these challenges. Some have increased production in other growing regions, including Yuma, Florida, and Mexico. California growers have continued to collaborate and show adaptability to ever-changing conditions.

In the end, many expected that the supply chain would recover, and market prices would drop to normal and we are already seeing progress. While the floods and crop damage in the Salinas Valley have caused a noticeable ripple in the supply chain, the California produce community will adapt and adopt innovative technologies and water management strategies to continue to handle drastic weather issues in the future. This is not the first or the last disruption that California farmers have faced. Whether it’s a drought or a flood, California growers will continue to bounce back and move forward.

*****

Patrick Prior graduated with a BA from the University of Portland. After graduation, he commissioned as an active duty officer in the US Army. After serving as a Transportation Officer for 4 years, he joined the Allen Lund Company in the Fall of 2019 and currently works in the LA Sales office as a Transportation Broker. 
patrick.prior@allenlund.com

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Sweet Globe is now the top exported grape variety by Peru, Surpassing Red Globe

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The 2022-23 Peruvian table grape season is continuing to show signs of varietal change, with Sweet Globe taking the throne as the most exported cultivar this season, according to Agraria.

With over 16 million 18-pound boxes shipped to date and an almost 40% increase year-on-year from 11.5 million boxes exported in 2021-22, Sweet Globe surpassed the market staple Red Globe by over 2 million boxes.

The Autumn Crisp and Allison cultivars follow, with 6.8 and 5.9 million boxes exported respectively for the 2022-23 season.

Agro exporter company Safco Peru reports this is the first time in 20 years the Red Globe loses its crown, with market trends now pointing to a rise in white seedless varieties.

Additionally, weather, logistic and political issues in late 2022 and early 2023 caused some of the late deals to be lost.

Safco Peru estimates 700,000 boxes were lost due to the blockades in Ica during January and another significant amount -more difficult to estimate- of what was going to be the late harvest in Piura, due to the heavy rains that had been falling in the region for more than a month.

The company expects traditional varieties to continue a downward trend, while green licensed varieties are projected to continue to rise boosted by a major growth in the Autumn Crisp cultivar.

The Peruvian Association of Table Grape Producers and Exporters’ (Provid) second crop estimate for the 2022-2023 season projects exports at 73 million boxes, a 13% increase year-on-year.

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