Archive For The “News” Category
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!
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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.
- 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)
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.
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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
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.
Depending on the variety, this avocados can be round or pear-shaped, green or black, and small or large. Avocado skin is usually rough. The flesh, when ripe, is soft and buttery.
It is a climacteric fruit, which means it continues to ripen after harvest. Hass avocado is the most common and is available year-round.
If you are going to use it immediately after purchasing it, choose a ripe one with black skin that yields to a little bit of pressure when squeezed.
Avocados with green skin that are very firm are not ripe and should rest for a few days before eating.
If the skin is dark and wrinkled, or has dents or soft flesh spots, it may be overripe and unpalatable to eat.
Keep them fresh
Avocados are sometimes sold with hard, unripe flesh, which will often ripen in a few days. You can leave the fruit at room temperature or expose it to direct sunlight to accelerate ripening.
You can also place the sealed avocado in a paper bag with a banana; the ethylene gasses from the banana will accelerate ripening.
The flesh of avocados is notorious for turning brown quickly once exposed to air, which is called enzymatic browning.
Although unappetizing to the eye, the brown flesh is perfectly edible. Still, there are tips for slowing or reducing browning after cutting:
- Coat the flesh with lemon or lime juice.
- Wrap tightly with cling film or place in an airtight container and store in the refrigerator to reduce exposure to oxygen.
- Store an avocado half with some sliced onion in a sealed airtight container, as the sulfur compounds in the onion help preserve the avocado.
Unripe avocados should not be placed in the refrigerator, but once they are ripe it is okay to do so.
Did you know?
According to Harvard University, half of this fruit has more potassium than a medium banana, 487 mg of potassium versus 422 mg of potassium, respectively.
Ripe avocado puree is sometimes used as a face mask because of its high content of moisturizing oils and vitamin E.
By Michael Tanaka, ALC Phoenix
There has been a long foretold narrative that a driver shortage, along with other concerning factors, are leading toward a long term deficit in the truck-to-load market balance. Today it may seem that there is no longer a looming crisis. Due to supply chain disruptions caused by the pandemic, conflict in Ukraine, fuel rates, inflation, and fluctuations in consumer spending habits, volumes have seen significant decreases overall. For customers and brokers alike, this has led to temporary alleviation, but when the market inevitably stabilizes, we may see that these trends are still problematic. The core issues remain with the driver market: average age, more available/flexible/safer employment options, unpredictable market, legal risks, etc. Experts are predicting that the driver shortage will grow to 160,000 drivers by 2030. There has also been a decline in the ability to keep up with semi-truck production and an increase in carriers leaving the market. While there was a slight ease in 2022, due to raises in driver pay that are not sustainable in this market, we still face an uphill battle and a vacancy of 78,000+ drivers.
One significant way the industry is trying to help close the gap is by adopting and implementing self-driving trucks. While there have been autonomous trucks tested and implemented on the road to some success, we have a long way to go before significant adoption. The majority of self-driving trucks making deliveries are running short, simple, light runs with smaller trailers. Currently, only 24 states allow autonomous semi-trucks (most states do allow testing if a backup driver is present). Interstate usage has yet to be approved by the federal government.
Due to the remaining legal, technological, and financial (cost of production not yet scalable) issues combined with the costs and challenges of replacing and upgrading the fleet, it is hard to see a significant percentage of adoption within the next few years. In 2021, 91.5% trucking companies were made up of six trucks or less. Expecting the hundreds of thousands of small carriers and owner-operators to replace and upgrade their fleets is a big ask. In 2021, there were 4.6 million semi-trucks in the U.S. The nature of the industry, legally and culturally, means major changes are typically implemented and standardized slowly. Lobbyists and unions often curtail progress further. Additionally, there are currently issues in the production of semi-trucks. Even in this extended soft market, a multi-year parts and worker shortage has limited the ability to keep up with orders.
It may be safe to assume that supply chain and consumer patterns will begin to stabilize before the adoption of autonomous trucks are significant. Carriers have had to work with lower rates and higher costs for years, causing an increase in bankruptcies and closures. As volumes increase and the supply and demand paradigm flips, expect to see the remaining carrier market use all of their leverage to offset their losses. While the development of self-driving trucks is progressing, it’s not going to save the day in the near term. Therefore, we must rely on our own preparation to weather the coming storm.
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Michael Tanaka graduated from Arizona State University in 2014 with a BA in Business Communications. Upon graduation, he began working in the transportation industry. He started off as a Business Analyst in the private emergency services sector but eventually pivoted to the OTR freight industry. He has spent time on both the asset and brokerage sides of the industry gathering experience through his roles in Operations, Carrier Sales, and Account Management. He began working for the Allen Lund Company in September of 2021 as a Transportation Broker and is now an Account Development Manager.
To pick a great mango, make sure you learn about the different varieties you can find when shopping.
When choosing a mango, don’t focus on color – it’s not the best indicator of ripeness. Mango varieties come in a multitude of colors, shapes and sizes.
First, squeeze it gently. A ripe mango will yield slightly. A medium-ripe one will be somewhat firm and an unripe fruit will be very firm to the touch.
Flavor varies from tart for green mangoes to naturally sweet for ripe mangoes.
Use your experience with produce such as peaches and avocados to help you easily choose, as mangoes also become milder as they ripen.
Ripe mangos will sometimes have a fruity aroma on their stems. When considering how to choose a fresh specimen, this is one of the nicest ways!
The red color that appears on some varieties is not an easy way to spot a perfect mango, as it is not an indicator of ripeness. Always judge by feel.