Archive For The “News” Category
| Sunday, September 10th through Saturday, September 16th is designated as National Truck Driver Appreciation Week for 2023. This is a time when America honors all the professional men and women truck drivers who are so vital to our way of life. They are the link in the supply chain that delivers the everyday needs of food items, manufactured goods, and just about every item in your home, office, or factory. It doesn’t matter if you live in a small town in central Kansas or New York City they have you covered. America has the most sophisticated supply network in the world, but it would grind to a halt without the truck driver. This week was created to remind all Americans these hard-working men and women deserve our respect and appreciation for all 52 weeks of the year. This year, let’s make the extra effort to extend driver courtesy when you see these big rigs making their way across the highways! We see truck drivers everywhere we go. Who are these road warriors that move over 10 billion tons of freight or about 70% of all the freight in the US? Here are some interesting facts about truck drivers. **94% are men, 6% are women, the average age is 49. **On average, they drive over 100,000 miles per year. **Celebrity truck drivers include Sean Connery, Elvis Presley, Rock Hudson, and Chevy Chase. **Truck drivers are the heroes who deliver the goods during pandemics, fires, floods, and national disasters that put themselves in harm’s way because that is what they are made of. Whenever you get an opportunity, take a moment to thank that hard-working professional driver for delivering the goods that help keep America the greatest nation in the world. Thank you, Drivers Bill Bess, Director, Carrier Development Allen Lund Company |
By Makenna Christensen, ALC Logistics
Today, there are no container ships waiting offshore of the ports of Los Angeles and Long Beach, a far cry from the 109-vessel queue in January of last year, but this doesn’t mean we have solved the problems that led to the backup. It’s easy to blame the pandemic for these problems, but the reality of the situation is these ports were bottlenecks long before COVID-19. The explosion of demand during the pandemic simply exposed these weaknesses. Now, with cargo volumes down, we have an opportunity to review our game tape, identify our weaknesses and areas of improvement, and find innovative new ways to fix our broken system.
In April, the California Air Resource Board (CARB) voted unanimously to adopt the Advanced Clean Fleets rule. This legislation works hand in hand with the state’s Advanced Clean Trucks rule to “end the sales of traditional combustion trucks by 2036, creating a path to 100% zero emission medium and heavy-duty trucks on the roads in California by 2045.” This legislation also bars non-zero emission “legacy” drayage trucks from registering into the CARB online system after December 31st of this year. So much for learning from our mistakes…
Rather than collaborating with the private sector to bring about meaningful change, California is intent on forcing trucking companies to comply with unreasonable demands. Not only does the state lack the 157,000 chargers required to charge the estimated 180,000 medium and heavy-duty ZEVs expected to be in use by 2030, but it also lacks the energy required to support those chargers. The Wall Street Journal’s Jennifer Hiller explains, “As fleets add trucks they may need to draw an additional 6 to 8 megawatts of power or more”. Supporting this level of output would require infrastructure improvements that could take years. In the meantime, some electric fleets have turned to diesel generators to charge their trucks, while others are ordering legacy rigs that will be delivered before the January 1st cut-off.
One of the industry’s greatest weaknesses during the pandemic was a lack of flexibility. The ports were weighed down by labor disputes and overregulation slowed down the nation’s supply chain exponentially. I understand the value of reduced carbon emissions, but we need a chance to fix the current supply chain before we rebuild it.
Rather than leaning so heavily on electric trucks, California needs to focus on alternative green solutions, like hydrogen fuel, that do not rely on California’s already strained electric grid. While California’s regulations do recognize hydrogen fuel cell options, it widely follows the ‘electrify everything’ mentality. Further, California energy officials need to partner with the private sector to find innovative ways of cutting down our emissions while fixing the broken system that contributed to our nation’s supply chain crisis. If not, we have a recipe for disaster.
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Makenna Christensen graduated from Marquette University in 2022 with a Bachelor of Science in Marketing and Human Resources. She started working at the Allen Lund Company in July 2022, as a Software Sales Coordinator for ALC Logistics, the software division of ALC.
makenna.christensen@alclogistics.com
About 36% of American families have skipped meals due to financial reasons during the last year, reports the fourth wave of the dunnhumby Consumer Trends Tracker (CTT).
Additionally, the study discovered 40% of consumers shop at multiple supermarkets to find the lowest prices, 9% higher from a year ago.
The study also reveals that 30% of Americans in all age groups have skipped meals. In addition, 18-34-year-olds and 35-44-year-olds are the highest meal skippers of all age groups, at 38% and 37%, respectively.
The U.S. Bureau of Labor Statistics indicates the rate of food-at-home inflation is 7.1%, however, among surveyed shoppers, the perceived figure is 22.6%, more than 15 points higher than the official measure.
Similarly, perceived inflation has fallen 1.6% since November 2022, whereas actual inflation has dropped 4.9% over the same time period.
Among the 8,000-plus U.S. consumers surveyed online, dunnhumby found 62% of Americans would have difficulty paying an unexpected expense of $400. That percentage jumps to 75% for consumers aged 18-44 and 72% for families.
“Over this year-long study, we have seen a very troubling trend of nearly a third of all Americans and nearly 40% of younger Americans, skipping meals due to financial concerns. And wave after wave, our research has also shown that 18-44-year-olds are at the epicenter of a food and financial insecurity crisis that shows no signs of abating,” said Matt O’Grady, President of Americas for dunnhumby. “Unfortunately, the reduction in SNAP benefits, and the stubbornness of center store prices, there doesn’t appear to be relief in the short term for many Americans, especially those who are already food and financially insecure.”
Oklahoma, Arkansas, Louisiana, Alabama, Tennessee, Georgia, and West Virginia continue to stand out for having the highest rate of food (36%) and financial insecurity (70%) in the country. These states also have the highest proportion of children at home compared to other geographic regions in the U.S.
Over half of customers (53%) report social media sites have influenced their grocery purchases in-store or online. Families with children at home (75%) and households heavily engaged with loyalty programs (68%) are two groups even more likely to be influenced by social media. Across all age groups, 37% were influenced by Facebook, 31% by YouTube, and 24% by Instagram.
Trade association Avocados From Mexico has topped its previous record by over 2 percent for U.S. import volume.
Total U.S. import volume was nearly 2.5 billion pounds for the fiscal year ending June 30, 2023.
The association expresses confidence it will break the record again this year (fiscal 2024, running from July 1, 2023 to June 30, 2024.)
The state of Michoacan appears to have a crop for this current year similar to the previous year, and import volume from Jalisco is growing exponentially, which means another record year if all goes as expected.
Promotions tied into Super Bowl weekend in early February was the biggest tentpole moment of the year resulting in excess of 250 million pounds of Mexican avocados imported in the weeks leading up to the big event. AFM also saw record-setting Cinco de Mayo promotions and shipments, with volume up more than 60 percent from 2022 and up 18 percent from 2021, which produced the previous record.
Mexico accounts for 85 percent of the avocados consumed in the U.S.
BEAVERTON, OR — Truckload freight volumes fell last month, and national benchmark spot rates for dry van and refrigerated (“reefer”) loads retreated from their gains in June, reported DAT Freight & Analytics, which operates the industry’s largest online freight marketplace and DAT iQ data analytics service.
The DAT Truckload Volume Index (TVI), a measure of loads moved during a given month, was lower in July for all three equipment types:
• Van TVI was 226, down 7.0% from June and 3.0% lower year over year.
• Reefer TVI slipped to 169, 3.4% lower than in June but 1.2% higher year over year.
• Flatbed TVI was 238, 12.8% lower compared to June but 3.5% higher year over year.
“Shippers faced service disruptions at the ports and in the less-than-truckload sector but were able to secure van capacity without causing the needle to move on spot rates and volumes,” said Ken Adamo, Chief of Analytics.
Despite month-over-month declines, the reefer and flatbed TVI numbers were the highest on record for July as fresh and frozen food, metals, machinery, construction materials and other seasonal freight moved through supply chains.
Demand for trucks slowed
National average load-to-truck ratios for van and reefer freight have been virtually unchanged for three straight months:
• The van ratio was 2.6, equal to June and down from 3.8 in July 2022.
• The reefer ratio was 3.8 – unchanged from June and down from 7.2 a year earlier.
• The flatbed ratio was 7.1, down from 9.7 in June and significantly down from 21.8 in July 2022.
Spot, contract rates dipped
Reflecting flat demand, DAT’s benchmark spot rates slipped in July:
• The spot van rate was $2.07 per mile, down 1 cent compared to June and 56 cents lower than in July 2022.
• The spot reefer rate dipped 3 cents to $2.44 per mile and 60 cents lower year-over-year.
• The spot flatbed rate was $2.54 a mile, down 7 cents month over month and 72 cents lower year-over-year.
Line-haul rates, which subtract an amount equal to a fuel surcharge, declined as well. DAT’s benchmark van line-haul rate was $1.63 per mile, down 2 cents compared to June. The reefer line-haul rate fell 5 cents to $1.96 per mile and the flatbed line-haul rate dropped 9 cents to $2.01 per mile. The average fuel surcharge increased by 2 cents to an average of 44 cents a mile for van freight, 48 cents for reefers and 53 cents for flatbeds in July.
“Spot rates, as a reminder, are ‘all-in’ rates, meaning no separate fuel surcharge to help mitigate the risk of fuel price fluctuations. You have to negotiate each individual load with fuel and operating costs in mind, which is not always easy,” Adamo said. “The sudden increase in fuel prices is testing the wherewithal of small carriers at a time when freight volumes are in a seasonal lull.”
DAT’s benchmark rates for contracted freight strengthened compared to pricing on the spot market. The van rate fell 1 cent to $2.57 a mile, the reefer rate gained 3 cents to $2.91 a mile and the flatbed rate rose 5 cents to $3.29 a mile.
After closing for three straight months, the spread between contract and spot rates was unchanged for van freight and increased by 6 cents for reefers and 12 cents for flatbed loads. The size of the gap is an indicator of bargaining power among shippers, brokers and carriers, Adamo explained.
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.
Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. DAT benchmark rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for truckload freight.
About DAT Freight & Analytics
DAT Freight & Analytics operates the largest truckload freight marketplace in North America. Shippers, transportation brokers, carriers, news organizations and industry analysts rely on DAT for market trends and data insights based on more than 400 million freight matches and a database of $150 billion in annual market transactions.
Founded in 1978, DAT is a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the S&P 500 and Fortune 1000 indices.
Berries replaced beer as Mexico’s top agri-food export product in 2022. In the first two months of 2023, the industry confirmed its profitability with a revenue value of $777 million, according to the Bank of Mexico.
This means berries has surpassed other popular crops, such as avocados, and highly demanded products such as beer and tequila.
Berries are produced commercially in 22 of the country’s 32 states, and exported to 38 nations across the globe.
Mexico produces raspberries, blueberries, blackberries and strawberries, with the latter leading the export figures.
The U.S. is the biggest importer of Mexican berries, followed by the Middle East, Southeast Asia and Europe.
During the 10 years, strawberry, blueberry and raspberry production has tripled from 257,000 metric tons (MT) in 2011 to 754,000MT in 2020.
The total value of Mexican berry exports has increased fivefold during this period.
Víctor Manuel Villalobos, secretary of Agriculture and Rural Development of the Government of Mexico, says that, in 2022, Mexico exported 560,000 tons of strawberries, and that the sector provides over 450,000 jobs.
Around 40% of these jobs belong to women in the industry.
Main producing states are Michoacán, where 58% of all berry production takes place, followed by Jalisco and Baja California with a 17% and 12% participation, respectively.
In light of the ongoing dry season and its prolonged effects, the Panama Canal has informed its customers that it will maintain a draft of 44 feet for the next few months.
The measure will be in place for “as long as weather conditions do not vary significantly from our current projections,” the Panama Canal Authority says in a recent release.
This comes as the canal seeks to continue providing reliable and sustainable service for its clients.
An average of 32 vessels per day will be allowed transit with this temporary condition, as changes in precipitation patterns are expected to affect water availability in Panama.
Drought conditions in the canal are part of a global phenomenon, with the World Meteorological Organization warning about a high probability of El Niño setting in before the end of this calendar year.
The Canal has been implementing procedures to improve water efficiency in its operations, while conducting studies to identify long-term solutions to climate variability. However, the severity of the drought, coupled with its recurrence is historically unprecedented.
The Panama Canal remains committed to ensuring safe and reliable operations in the short term and optimal services for years to come.
Peruvian fresh blueberry exports reached 34.7 million kilograms in the first half of 2023, reflecting an increase of 42.7 percent compared to the 24.3 million kilos shipped in the same period last year, according to Agraria.
By the end of the year fresh blueberries will be the main agricultural export crop from Peru, surpassing table grapes.
In the first half of this year, shipments of fresh blueberries from Peru were as follows: January, 15,716,388 kilos (11,982,583 kilos in January 2022); February, 9,655,215 kilos (5,707,546 kilos in February 2022); March, 3,827,527 kilos (2,874,230 kilos in March 2022); April, 1,331,768 kilos (976,997 kilos in April 2022); May, 1,551,628 kilos (762,083 kilos in May 2022); and June, 2,603,737 kilos (2,001,985 kilos in June of last year).
Shipments of fresh blueberries every month of this year have been higher compared to the same months in 2022. In addition, the 2023-2024 campaign (which started in May and whose peak is registered in September and October) it is already predicted it will be greater than the 2022-2023 season, and it is expected to grow in volume by 25-30 percent.
The main destination markets for fresh blueberries from Peru are the U.S., the Netherlands, China, the UK, and Hong Kong, among others.
By Nora Trueblood
Before diving into this very tenuous subject of immigration, I wanted to share some history to bring us to 2023.
The United States has always been considered the great melting pot, welcoming immigrants from all over the world. From the late 1800s until 1965, immigration was just a matter of something we always had, accepted, and were proud of. We welcomed those from all points in Europe and Russia and then more and more from Asia and Latin America. The early immigrants were attracted by jobs in building and manufacturing industries, and as time went on the needs in agriculture became more obvious for immigrant workers.
The U.S. had allowed immigrants at a large pace, admitting an average of 250,000 immigrants a year in the 1950s, and 330,000 in the 1960s.
Beginning in the early 1960s, immigration became more and more of a talking point, and the idea of establishing a policy to monitor and control entry to the U.S. was on the minds of both sides of the aisle – both in Congress and with the Senate. Quotas that had been established based on census information since the 1920s were out of date, and those quotas were challenged as to their fairness. John F. Kennedy took up immigration reform prior to his assassination.
The Immigration and Naturalization Act of 1965
Considered the first legislation of its kind passed after Kennedy’s death, with support and passage by Congress and in the Senate. However, the water-downed version of the legislation was thought to have very little real consequence in immigration reform. In the three decades since its passage, it is estimated that over 18 million legal immigrants entered the U.S., with the highest number from Mexico. The roots of this legislation remain in effect.
The Refugee Act of 1980
This legislation’s focus was on raising the annual admittance of refugees to the U.S. from 17,400 to 50,000. It also created a better process to review and adjust to the huge influx of refugees from war-torn countries where individuals needed to show a “well-founded fear of persecution” if they stayed in their home country. It also provided assistance to immigrants to achieve financial self-sufficiency. This legislation was passed unanimously by the Senate and was signed into law by President Jimmy Carter. Parts of this legislation remain in effect.
The Immigration Reform and Control Act of 1986
The intention was to create a better way of enforcing immigration and the first amnesty programs, creating more chances for legal immigration. It also made it illegal for employers to knowingly hire or recruit illegal immigrants. This was passed and signed into law by President Ronald Reagan. The effect was specific to a new visa process to allow immigrants to work temporarily in mostly agricultural settings, with some non-agricultural visas extended as well. This Act remains in effect.
The 1990 Immigration Act
This legislation amended the Immigration and Naturalization Act of 1965, by raising the total level of immigration. Reportedly 20 million immigrants were permitted over the two decades since its passage to enter the U.S. Additionally, entrants could stay in the U.S. until situations in their home countries improved. A new area addressed in this Act was that employers could contract with foreign laborers to come to the U.S. and pay for their passage in exchange for the worker’s wages (up to one year). What resonates with me specifically about this legislation is the fact that it was introduced by (D) Ted Kennedy and signed into law by (R) President George Herbert Bush. It seems like the last time a bipartisan piece of immigration reform was passed.
There was additional reform passed in 1996, and then after 9/11, the Homeland Security Act of 2002 took over much of the immigration enforcement.
President Biden is trying to push through more immigration reform, however the Republicans currently control the House and the Democrats the Senate. And the divides in this country have never seemed so wide.
Our agricultural businesses need seasonal workers as do other non-agricultural businesses like the hospitality/hotel industry. They rely on immigrants (legal and other) to keep their businesses afloat. I have read and heard the statement “no one wants these low-paying hard-working jobs.” I always thought it would be interesting to require high school students in an agricultural region/state to work in the fields for one week. While I have not done so myself, I understand working in the fields, just as working as a housekeeper at a hotel, is very hard work. So, we Americans won’t fill these jobs? That is another topic altogether to think about.
How do we get our Congress and Senate to work together to bring about humane and fair immigration reform? Where those in the U.S. who are here illegally, but are working and paying taxes have a road to citizenship. Where the Dreamers that are here because their parents wanted a better life for them, may stay and become legal citizens. And the flip side, how do we remove the immigrants that are criminals, prevent entry to those with records of violence and gang affiliations, those that are moving fentanyl through our schools and communities, and those who do not work and expect our government to take care of them?
I do not have answers to all of these questions, but I do know that the transportation and produce industries employ a lot of very smart people. We need to speak up, get involved and be the conduits of change. Let’s have more conversations.
Mexico exports nearly one-half of the world’s avocado exports, amounting to a record of $3.495 billion in 2022. More and more in these exports are going to the U.S. and less in the rest of the world, according to El Economista.
Of all overseas shipments of Mexican avocados in the past year, 86.1 percent went to the U.S. market, in value terms, a share that exceeded the previous all-time high of 80.2 percent in 2014.
The growing avocado exports from Mexico are based on purchases by American consumers, but at the same time this explains the decreasing geographical diversification of Mexican external sales of this fruit.
Of all world avocado exports in the past year, Mexico had a 47.5 percent share in 2022, with sales of $3.008 billion to the U.S.
The market value of the other destinations for avocado exporters from Mexico is substantially lower: Canada ($287 million), Japan ($87 million), Spain ($41 million), El Salvador ($26 million), Honduras ($11 million), and the rest of the nations reach less than $10 million each.
The U.S. began the gradual opening of its market in 1997, after having applied an embargo on Mexican avocados for 83 years. The last stage occurred on January 31, 2007, when it allowed imports to California,
In 2003, the U.S. only represented 30.2 percent of Mexican avocado exports. Then sales were diversified to destinations such as Japan (20.5 percent), France (14.9 percent) and Canada (9.7 percent).