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NEW YORK — Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from Grocery Doppio’s December 2023 Digital Grocery Performance Scorecard.
Grocery finished the year strong in December, with a 12.6% jump in overall sales, and 9% in digital sales, as compared with November.
This left grocers ‘mildly optimistic’ about business opportunities in 2024, with 57% reporting that they expect a better year in 2024 than they had in 2023. Here’s how they ranked their top business opportunities for 2024:
- launching/growing retail media: 81%
- scaling personalization: 76%
- increasing profitability: 64%
- improving price/promotion: 64%
For grocery shoppers, on the other hand, cost control and wellness are the biggest influencing factors to their immediate priorities. 83% of shoppers said they are focused on savings, discounts and promotions at this time, and 69% said they prefer easy-to-understand deals like “$2 off” and “2-for-the-price-of-1” rather than % discounts. Meanwhile, 67% plan to shop healthier foods in 2024, 23% intend to buy more organic produce, and 64% desire to dine together as a family more frequently.
The December 2023 performance scorecard is based on aggregated data from 2.3 million U.S. shopper orders, plus polling of 42,267 grocery shoppers and 4,081 grocery executives between January 1, 2022 and December 31, 2023.
More key findings from Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard” include:
- 74% of grocers expect to discount/promote the same amount or more in 2024 than they did in 2023.
- 86% of shoppers plan to buy both in-store and digitally in 2024.
- Grocery pickup increased by 3.4% in December, compared with November 2023. And 17% of shoppers will increase their use of pick-up services in 2024.
“Inflation has not abated, and shoppers remain focused on price going into 2024,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “As basket sizes and average price/item continue to grow from month to month, the pressure is on grocers to come up with the attractive promotions and discounts that shoppers desire.”
“Shoppers are looking for healthy options, cost saving opportunities, and satisfaction of other individual interests,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “To maintain customer loyalty and improve profitability in 2024, grocers need the ability to generate highly accurate and scalable personalized search results and recommendations in their digital channels.”
The December 2023 Digital Grocery Performance Scorecard is one of many resources available on Grocery Doppio. Grocery Doppio is a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth.
Grocery Doppio brings together research-driven grocery content, fact-based observations, and industry expert perspectives, to deliver a monthly performance scorecard that identifies improvement opportunities for grocery retailers.
To download Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard,” click here.
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.
About Wynshop
Wynshop is an ambitious team of digital innovators obsessed with a solitary mission—helping grocers and other local store-based retailers grow wildly successful online businesses. Its refreshingly easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and gives retailers the ability to control every facet of their customers’ digital shopping experience. This results in a more personalized customer journey and amplified shopper loyalty.
BEAVERTON, OR — Spot truckload rates rose in December, and the gap between spot and contract van rates closed to its narrowest point since March 2022 when prices to move truckload freight were near all-time highs, said DAT Freight & Analytics, which operates the DAT One online freight marketplace and DAT iQ data analytics service.
A convergence of spot and contract rates would signal an end to the current cycle of falling prices for truckload services.
“At 39 cents, the spread between spot and contract van rates is still substantial but was down 7 cents compared to November,” said DAT Chief of Analytics Ken Adamo. “The price to move van freight under contract hit its lowest point in nearly three years. Entering 2024, shippers are in a strong position as they negotiate contract rates, and carriers on the spot market have some optimism that the market will turn.”
Freight volumes fell for all three equipment types
The DAT Truckload Volume Index (TVI) fell for all three equipment types compared to November:
- Van TVI: 221, 8.7% lower month over month
- Refrigerated TVI: 182, down 5.7%
- Flatbed TVI: 203, down 14.7%
The van and refrigerated (“reefer”) indexes were down nearly 2% year over year.
“Lower van freight volumes suggest that shippers drew from inventory ahead of the holidays,” said Adamo. “Disappointing freight volumes and less demand for over-the-road truckload services tempered the bump in spot rates.”
Spot rates increased for all three equipment types
Spot line-haul rates, which subtract an amount equal to an average fuel surcharge, increased for all three equipment types compared to November:
- Line-haul van rate: $1.65 per mile, up 7 cents
- Line-haul reefer rate: $1.98, up 4 cents
- Line-haul flatbed rate: $1.87, up 4 cents
Changes to DAT’s broker-to-carrier benchmark spot rates were mixed. The spot van rate averaged $2.10 per mile, up 3 cents compared to November. The reefer and flatbed rate dipped 2 cents to $2.47 and $2.41 a mile, respectively.
he contract van rate fell 4 cents to $2.49 per mile, the lowest since February 2021. The reefer rate was down 6 cents to $2.88 a mile, while the flatbed rate fell 3 cents to $3.14.
Load-to-truck ratios indicated a soft market for carriers
DAT’s national average load-to-truck ratios slumped, driven by the decline in freight volumes:
- Van ratio: 1.9, down from 2.1 in November and from 3.4 in December 2022
- Reefer ratio: 3.4, down from 4.4 in November and from 5.7 year over year
- Flatbed ratio: 5.1, down from 5.9 in November and from 9.8 year over year
Load-to-truck ratios measure the number of loads posted to the DAT One marketplace relative to the number of trucks. Changes in the ratio typically reflect the pricing environment for truckload services on the spot market.
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. National average spot 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.
Container xChange has released its “2023 Shipping Industry Trends and Future of Shipping in 2024” report.
The second annual report analyzes key impacts that shaped the container shipping industry in 2023 and provides predictions and scenarios for 2024 with an aim to help the industry plan ahead for what the report called a “grumpy” 2024, according to a news release.
Overall, the report indicates a high probability of market recovery failure in 2024, the release said.
The industry surveys conducted with supply chain professionals globally indicate that, in 2024, the shipping industry is predicted to grapple with persistently reduced demand and oversupply, potentially leading to fiercer competition, further reduced profits and possible market consolidation, the release said.
Although container schedule reliability is improving, persistent challenges remain. Blank sailings are expected to rise in response to market volatility, while imbalanced container availability, driven by economic crises, may continue in certain regions, according to the release.
The shipping industry faces the risk of oversupply in 2024 as deliveries are set to increase to 2.95 million TEUs, according to the release. The surge in deliveries, including “Megamaxes” and “Neopanamaxes,” may lead to intense competition, reduced profits, and potential mergers and acquisitions, the release said.
Carriers, particularly in North America, are navigating a delicate balance between government-driven demand and rising interest rates.
“Overordering of ships during the economic boom could create overcapacity, turning 2023’s profits into 2024’s losses,” the release said. “The sector is projected to face challenges to restore supply and demand equilibrium until 2026.”
Between January and October of 2023, Chile exported over 2.9 million tons of fruit, valued at $6.85 billion FOB.
Compared to the same period in 2022, this is a decrease in exported volume of 5.4 percent and an increase of 9 percent in value, as reported by Odepa.
Of this total in value, 70.7 percent is for fruit, 20.1 percent to processed fruit (juices, oils, preserves, frozen, dehydrated), and 9.1 percent to dried fruits (walnuts, almonds, hazelnuts, among others).
Fresh fruit volume reached 2,254,000 tons, amounting to $4.85 billion FOB for the period. These exports registered a decrease in volume of 6.6 percent, and in value an increase of 13.2 percent compared to the same period of the previous year.
The main commodities exported in the analysis period in this group were cherries, registering a volume of 302,842 tons, equivalent to $1.82 billion FOB, which represents 37.6 percent of the total value of fresh fruit exports in the analysis period. An increase of 6.1 percent in volume and 21.9 percent in value is evident in shipments of this fruit, compared to the same period in 2022. The main destination is China (91.1 percent of the total value of exports of Chilean cherries were sent to that country).
Table grapes are next in volume, with 495,308 tons equivalent to $892.7 million FOB, which represents 18.4 percent of the total value of fresh fruit exports. There was a decrease in shipments of 18 percent in volume and an increase in value of 3.5 percent, compared to the same period of the previous year, with the U.S. standing out as the main buyer in this period (47.7 percent) and China (13.1 percent).
In third place are apples, with shipments of 461,500 tons equivalent to $484 million FOB, which represents 10 percent of the total value of fresh fruit exports. There is a decrease of 20.3 percent in volume shipped and 1.1 percent in value, compared to the same period of the previous year. The main destination country was the U.S. (concentrating 14 percent of the total value of apple shipments), followed by Colombia (concentrating 13 percent), and Brazil (10 percent).
And in fourth place are blueberries, with shipments of 72,992 tons and $327 million FOB, equivalent to 6.7 percent of the total value of fresh fruit exports. There is a decrease of 19.5 percent in volume shipped and 8.8 percent in value compared to the same period of the previous year. The main destinations were the U.S. (48.6 percent) and the Netherlands (19.3 percent).
CJ Buxman, a third generation San Joaquin Valley grower/shipper, and former President of Fruit World Company, has started Sunny Cal Farms in Reedley, CA.
Sunny Cal Farms is offering organic and conventional California-grown specialty and traditional citrus, along with heirloom and novel grapes.
The original Sunny Cal Farms was started in 1981 by CJ’s father, Carl Jasper Buxman, and packed under the Jasper label, which is also being resurrected. CJ, along with his wife and partner Maureen, wanted to use the historic company name and label to rekindle the yearning for fruit that puts quality and flavor above all else.
“It’s great to continue the Sunny Cal legacy,” relates CJ “We’re farmers first, and are committed to providing the highest quality, most flavorful fruit. We’re also focused on listening to our customer needs, and satisfying those needs with the best customer service possible.”
The Buxman’s grow 120 acres of organic and conventional citrus and table grapes, manage another 100 acres, and have long-standing relationships with other foundational California family farmers who share the Buxman’s commitment to providing quality fruit and exceptional customer service.
As curators of specialty and unique products, Sunny Cal Farms can bring program buying consistency to small and mid-sized retailers. Sunny Cal Farms is currently shipping organic and conventional citrus, including specialty varietals, lemons, and navel oranges.
“Our long-standing grower relationships helps us secure a consistent supply of the best quality fruit, and allows us to fill orders,” CJ added. “We’re dedicated to honoring all our commitments and will only sell what we can deliver.”
Trade numbers through October show little change in U.S. fresh produce export shipments compared with a year ago, while U.S. imports of fresh fruits and vegetables had a modest increase in the last 12 months.
The USDA reported total exports of fresh produce from November 2022 through October 2023 totaled $6.9 billion, up 1% compared with a year ago but down 4% from 2018.
U.S. vegetable exports were rated at $2.8 billion for the period, down 1% for the period but up 9% from 2018; fresh fruit exports totaled $4.2 billion, up 2% compared with a year ago but down 11% compared with 2018.
U.S. imports of fresh produce totaled $32 billion from November 2022 through October 2023, up 5% from a year ago and 43% higher than 2018.
U.S. fresh fruit imports were pegged at $19.5 billion, up 1% from the previous year and up 40% from 2018; imports of fresh vegetables were valued at $12.5 billion, up 12% from a year a ago and 50% higher than 2018.
Top U.S. exports for November 2022 through October 2023, compared with 2022 and 2018.
- Apples — $869.1 million, down 1% from 2018 and down 18% from 2018.
- Berries — $798.8 million, down 3% from 2022 but 12% above 2018.
- Grapes — $622.6 million, down 4% from 2022 but down 18% from 2018.
- Oranges — $593.2, up 8% from 2022 but down 16% from 2018.
- Lettuce — $592.1 million, up 1% from a year ago and up 23% from 2018.
Top U.S. imports for November 2022 through October 2023, compared with 2022 and 2018.
- Berries (excluding strawberries) — $4.2. billion, down 1% from 2022 but up 74% from 2018.
- Tomatoes — $3.2 billion, up 15% from 2022 and up 34% from 2018.
- Avocados — $2.88 billion, down 17% from 2022 but up 20% from 2018.
- Bananas — $2.75 billion, up 10% from 2022 and 12% higher than 2018.
- Grapes — $2.3 billion, up 7% from 2022 and up 46% from 2018.
DAT’s 2024 Freight Rate Focus report notes pandemic-sparked disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.
While truck rates are expected to rise to some degree, the DAT report said it may not be until the middle of 2024.
“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”
Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.
DAT’s prediction is current market conditions will continue until late Q2 when the market should finally find equilibrium.
“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.
Average U.S. refrigerated truck rates (per mile)
- Jan. 3 — $3.88.
- Feb. 7 — $3.72.
- March 7 — $3.48.
- April 4 — $3.43.
- May 2 — $3.37.
- June 6 — $3.58.
- July 4 — $3.59.
- Aug. 1 — $3.57.
- Sept. 5 — $3.69.
- Oct. 3 — $3.41.
- Nov. 7 — $3.33.
- Dec. 5 — $3.21.
(Source: USDA)
Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024.
In January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.
Following drought restrictions imposed in May, which saw daily transits and vessel capacity reduced, the Panama Canal Authority (ACP) announced Dec. 15 that it will increase the number of daily transits to 24 starting in January.
This comes as rainfall and lake levels for November proved to be better than expected, coupled with the positive outcomes from the Canal’s water-saving measures.
Additionally, the Panama Canal will allow one booking slot per customer per date, with some exceptions for quotas offered to vessels competing through the reservation system.
These measures allow the majority of vessels that want to transit the Canal to have a better chance of obtaining a reservation.
Currently, 22 vessels transit daily, divided into 6 Neopanamax and 16 Panamax. This restriction is in response to the challenges posed by the current state of Gatun Lake, which is experiencing unusually low water levels for this time of the year due to the drought induced by the El Niño phenomenon.
The canal is supplied by two nearby lakes which received 50% less rain than usual between February and April.
With this, 2023 became the second driest year in recorded history of the Panama Canal watershed, which led to the implementation of an operational strategy focused on water conservation and transit reliability.
Approximately 3% of global maritime trade volumes traverse the Panama Canal. Over 50% of the tonnage navigating through the maritime passageway originates from the trade lane connecting the East Coast of the U.S. to Asia, followed by South and Central America’s routes. Agricultural products are among the key commodities transported through the canal.
The Hunts Point Produce Market located in New York City’s South Bronx is the world’s largest wholesale produce distribution center supplying fresh fruits and vegetables to 22 million people each year.
The 112-acre complex in the Bronx has approximately 30 merchants, moves over 2.5 billion pounds of produce sourced from 49 states and 55 countries each year.
S. Katzman Produce reports it sells various products the year around because it is produced in different places with different seasons.
Literally hundreds of trucks ranging from 18 wheelers to straight jobs are deliver produce to the market, or distributing it from the facility. Hunts Point also receives about 150 rail cars per month, providing volume that is miniscule to that of trucks.
The giant produce markets employees 2,000 people and has about 7,000 visitors daily.
Hunts Point opened in 1967 and is owned by New York City. It has received three rounds of funding totaling nearly $400 million, but business owners say more is needed to fully modernize.
A major upgrade at the produce center is building adequate refrigerated storage to replace the approximately 1,000 diesel-powered refrigerated trailer units that idle on-site.
Between January and September of 2023, the Peruvian avocados were exported to 36 different countries with a total market value of $953 million. Compared to the previous year, this was a 9% increase from the $874 million reached in 2022, according to The Peruvian Exporters Association (ADEX).
In terms of volume during this period, 594,778 tons were exported, 3.3% more year-on-year.
The industry struggled with challenging weather conditions during August, which reduced the month’s harvest volume year-on-year from 48,401 tons to 45,041 tons. However, regions like Pasco and Ica experienced more than an 85% increase in production volume.
The United States stands as the third main destination of Peruvian avocados this year, with a total import value of $135 million. Only The Netherlands and Spain have a bigger share of the market with $293 million and $185 million in total value, respectively.
Chile and the U.K. finish the top five list of Peruvian avocado importers with a shared import value of $97 million, according to ADEX.
Leading export companies were Avocado Packing Company S.A.C., Westfalia Fruit Perú S.A.C., Camposol S.A., Virú S.A., Sociedad Agrícola Drokasa S.A., Agrícola Cerro Prieto S.A., and Agrícola Pampa Baja S.A.C.