Archive For The “News” Category
The issue today is the same as it has been throughout all history, whether man shall be allowed to govern himself or be ruled by a small elite.
— Thomas Jefferson
BEAVERTON, Ore., June 15, 2023—Truckload freight volumes rallied modestly in May and national average spot rates were stable for a second straight month, said DAT Freight & Analytics, operators of the DAT One freight marketplace and DAT iQ data analytics service.
The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, increased for van, refrigerated (“reefer”) and flatbed freight:
• Van TVI: 220, up 5% from April
• Reefer TVI: 164, a 5% increase month over month
• Flatbed TVI: 258, up 7% from April
Month over month, the van and reefer TVI numbers rebounded from their lowest points since February 2021. Truckload volumes typically decline from April to May, but they increased for the first time since 2019.
“This was the second-best May on record for van and reefer freight, according to our TVI,” said Ken Adamo, DAT Chief of Analytics. “There was demand to move seasonal goods at a time when the truck supply on the spot market tightened due to the International Roadcheck inspection event, the Memorial Day holiday and general carrier attrition.”
Van and reefer load-to-truck ratios increased
National average van and reefer load-to-truck ratios rose in May:
• Van ratio: 2.5, up from 1.9 in April, meaning there were 2.5 loads for every truck on the DAT One marketplace
• Reefer ratio: 3.6, up from 2.7
• Flatbed ratio: 11.7, down from 12.1
National average broker-to-carrier spot rates were steady compared to April:
• Spot van rate: $2.05 per mile, down 1 cent
• Spot reefer rate: $2.44 a mile, up 3 cents
• Spot flatbed rate: $2.65 a mile, down 2 cents
Monthly national average line-haul rates, which subtract an amount equal to an average fuel surcharge, increased for the first time this year for all three equipment types. The average van line-haul rate was $1.61 a mile, up 2 cents compared to April; the reefer line-haul rate jumped 7 cents to $1.96 a mile; and the flatbed line-haul rate rose 2 cents to $2.12 a mile.
Contract rates declined
National average rates for contracted freight declined compared to April:
• Contract van rate: $2.62 per mile, down 6 cents
• Contract reefer rate: $2.91 a mile, down 10 cents
• Contract flatbed rate: $3.30 a mile, down 3 cents
The average rate for contract van and reefer freight has fallen for seven consecutive months.
“Shippers are taking advantage of abundant truckload capacity to establish new contract rates at substantial savings compared to 2022, and to make strategic use of the spot market,” Adamo said. “We expect these trends to continue through the end of the year.”
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.
Load-to-truck ratios reflect truckload supply and demand on the DAT One marketplace and indicate the pricing environment for spot 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 wholly owned subsidiary of Roper Technologies (NYSE: ROP), a diversified technology company and constituent of the S&P 500 and Fortune 1000 indices.
Strawberries enjoy one of the highest household penetration levels in the U.S. among fresh fruits, and the highest per capita consumption in the berry patch, both in fresh and frozen markets.
In the latest RaboResearch Report, it highlights that as demand continues to grow steadily, planted area in California is expanding. Record shipments are likely in 2023, but weather remains the usual wildcard, particularly this season, as growing areas in California have been impacted by record rainfall.
While the fresh market remains mainly a regional North American story, U.S. imports of frozen strawberries from South America are changing the landscape. With the availability and consumption of all berries expanding, interesting market opportunities arise.
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%.
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).
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.
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.
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.
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.
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.