Archive For The “News” Category
The worst congestion is plaguing U.S. seaports “since the age of containerization”, according to Logistics Management.
The publication credits backlogs of imports coming into the country, a shortage of equipment, and inland blocks as the main causes for this situation.
“U.S. seaports face the unprecedented situation where they’re now in their 17th straight month of record container import volume,” says Chris Jones, executive VP of industry and service at Descartes Datamyne.
“Consequently, continuous and shifting congestion and delays, and unpredictable lead times for importers has resulted”, Jones shared.
Presently, the ports of Los Angeles (POLA) and Long Beach (POLB) handle approximately 40% of U.S. imports. On the other hand, the port of New York and New Jersey processed 4,651,094 TEUs in 2021, ranking in third.
Consistent problems
Schedule reliability remains a significant problem for carriers, the outlet states. During 2021, West Coast ports reported long delays, with the East and Gulf coast ports now experiencing the same.
Meanwhile, seaports remain flooded with containers as labor negotiations on the West Coast are ongoing. Discussions have significantly affected shippers who remain concerned about slowdowns and potential strikes, Logistics Management reports.
Delaware River Valley seaports should reach an all-time high this fall and winter with fresh fruit and vegetable imports.
Peru and Chile are driving the key growth with increased volume and more varied production from growers.
Chilean imports at Philadelphia started 50 years ago.
The port’s reefer container cargo has grown by an average of 12 percent since 2012.
PhilaPort is the brand used by the Philadelphia Regional Port Authority, a Pennsylvania agency located in Philadelphia.
Nomenclature and statistical references for the Delaware River are complex because there are major port facilities in three neighboring states.
Thirty miles south of Philadelphia, the Port of Wilmington, Delaware, offers a huge and expanding fresh produce import trade. In Gloucester City, NJ, facing Pennsylvania from across the wide river, are massive dock and warehouse facilities owned by Holt Logistics Corp.
Countless businesses along the river and scattered throughout this sprawling metropolitan area coordinate with state and federal agencies to build their fruit business.
Family businesses owned by the Holt’s, Manfredi’s, Procacci’s and Kopke’s, and other families, have invested countless millions of dollars to boost port cold storage and other infrastructure.
Americold, Lineage, and other cold warehouses are also expanding to meet demand.
Manfredi Cos., Inc., of Kennett Square, PA offers extensive cold storage space, as well as transportation, logistics, and repacking services to all Delaware Valley docks.
Manfredi used to used imports from the area to fill seasonal gaps of domestic products, but now is importing the year-round. The company also notes offshore growers are making significant investments for volume growth for the next 15 years.
Summer citrus imports historically preceded a market void before Peru filled the market. Now for Manfredi, imported citrus is in its warehouse12 months a year, creating a different approach to warehouse planning.
Peruvian fruit production has been arriving earlier and earlier into the Delaware River, with the first ships of 2022 arriving in July. Peruvian grapes came into the market this September as a precursor to the Chilean deal.
Grapes and blueberries are Manfredi’s largest-volume Peruvian products. Avocados rank third. Peruvian citrus and mangos are also up for the cold storage.
Moroccan Clementines arrive in the fall and winter. For this season, Manfredi awaits Moroccan growers’ projections, although they are expected to be similar to last season.
Manfredi has recently been working with Brazilian mango growers to have a new program into the Delaware River. Refrigerated containers of Brazilian grapes began arriving here late last summer.
PhilaPort notes Brazil, South Africa’s Western Cape, North Africa, Spain, and Portugal, are all looking to increase volumes for delivery in the Delaware River.
PhilaPort on April 27 announced the maiden call of a new MSC service to the Port of Philadelphia. Running the route named “Indus 2” is the 6,730-TEU (20-foot Equivalent Unit) container vessel MSC Michaela.
Indus 2 embarks from Mundra, India. Subsequent calls are Nhava Sheva, India, and after the Suez Canal, there are stops in Gioia Tauro, Italy; Barcelona, Spain; Sines, Portugal; and then on to Halifax, ending at Philadelphia’s Packer Avenue Marine Terminal.
PhilaPort credits Packer Avenue Terminal operator, Holt Logistics, with doing a great job with the customer base and made Indus 2 a reality.
Indus 2 offers opportunities for cold chain produce volume increases from Mediterranean countries. These may include frozen Egyptian vegetables and Italian gourmet meats.
A big part of the U.S. onion shipments originate from Idaho and Oregon.
Idaho harvest onion acreage in 2021 was reported at 10,900 acres, the same as 2020 but up from 8,400 acres in 2018.
Oregon’s harvested onion acreage in 2021 was reported at 21,800 acres by the USDA, up 7% from 20,300 acres in 2020 and up 13% from 19,300 acres in 2018.
In 2021, Idaho onions accounted for 15% of all U.S. onion shipments reported by the USDA, while Oregon commanded a 13% share of all U.S. shipments.
Idaho onion shipments were reported in all months during 2021, but the heaviest shipments were reported from September through April.
Domestic truck shipments of Idaho onions totaled 11.24 million 50-pound bag equivalents in 2021, with export truck shipments reported at 478,000 bags.
Idaho’a piggyback onion shipments were reported at 4,000 50-pound bags, while rail shipments of Idaho onions totaled 1.98 million 50-pound bags.
Oregon’s domestic truck shipments of onions totaled 9 million bags in 2021, while export truck shipments of Oregon onions were reported at 904,000 bags. As with Idaho, Oregon onion suppliers shipped during every month of 2021, with the heaviest volume from September through April.
Oregon’s piggyback shipments of onions in 2021 totaled 70,000 bags, while rail shipments of Oregon onions tallied 1.87 million bags, according to the USDA.
The United States is by far the largest importer of fresh fruit and vegetables worldwide and imports continue to grow, according to this analysis by Fruit & Vegetable Facts. Including in the first half of this year. In 2021, the United States imported 21.5 million tons of fresh fruit and vegetables. Germany is the 2nd largest importer worldwide with a quantity of about 9 million tons. In the first half of this year, imports from the United States grew by 3%.
More than half of the imports come from neighboring Mexico. In the first half of this year, however, imports from this country lagged slightly behind those in the first half of last year. The top 3 of imports from Mexico consists of tomatoes, peppers and avocados.
Other important suppliers to the United States are Guatemala (especially bananas), Costa Rica (pineapples and bananas), Canada (cucumbers, tomatoes and peppers) and Ecuador (especially
bananas).
Imports from Peru and Chile
Peru and Chile are respectively the 5th and 7th suppliers of fresh fruit and vegetables to the United States. Imports from Peru continue to grow. This year in the first half the amount was 18% more than last year and will exceed the 1 million ton mark on an annual basis.
Grapes and onions are the main products imported from Peru. Blueberries take third place. Last year, for the first time, they exceeded 100,000 tons. Asparagus, avocados, bananas and mandarins are the other main imports from Peru.
Imports from Chile seemed to have passed their peak, but in the first half of this year they still grew by more than 10%. Grapes are by far the most important product. Until a few years ago, some 20,000 tons of peppers were imported from the Netherlands, but last year that was only 1,400 tons. Onions (6,100 tons) and beetroot (5,300 tons) were more important last year.
Exports
The United States is also a major exporter. Annually it exports about 6 million tons. Exports are decreasing with mainly the export of home grown products. The re-export was increasing, but stagnated in the first half of the year. The re-export mainly concerns bananas to Canada. Canada is also by far the most important customer for the export of home-grown products in the United States. Mexico is number two and far behind Korea, Japan, Taiwan and Hong Kong. The Netherlands and the United Kingdom follow. This mainly concerns sweet potatoes.
ATHENS, GA – With significantly reduced global warming potential (GWP), new-generation refrigerant R-452A will become the standard for new Carrier Transicold transport refrigeration units in North America beginning later this year, helping customers improve sustainability profiles and achieve regulatory compliance.
“Carrier Transicold truck and trailer refrigeration units have been qualified for R‑452A since 2017, and it has been available as a customer-specified option for several years,” said Bill Maddox, Senior Manager, Product Management, Carrier Transicold. “R‑452A is already standard with some of our newer units, and we’re pleased to expand this standardization to the broader array of Carrier Transicold products, effectively halving the refrigerant GWP of our transport refrigeration offerings.”
Beginning in October, R-452A with a GWP of 2,140, will become the standard refrigerant for all Carrier Transicold models that currently use R-404A, which has a GWP of 3,922.
The timing of the transition will help California customers placing orders for 2023. The California Air Resources Board (CARB) this year approved a measure requiring all new transport refrigeration units placed into service in 2023 to use a refrigerant with a GWP of less than 2,200.
In 2025, Canada will require refrigerants with a GWP of less than 2,200 in new transport refrigeration units, to reduce greenhouse gas emissions in accordance with the Kigali Agreement of the Montreal Protocol.
Previously, there was a significant cost differential between the new and traditional refrigerants, however over the last several years that has diminished with changing demand and refrigerant production trends, helping to encourage adoption of the more sustainable R-452A.
Maddox added some customers may consider switching refrigerants for units already in service, noting that with relative ease, Carrier Transicold customers can transition newer existing equipment from R-404A to R-452A. Unlike some competitive systems that require replacement of a thermal expansion valve when converting, late-model Carrier Transicold systems – those with an electronic expansion valve – simply require a software upgrade along with purging the R-404A and replacing it with R-452A. On Carrier Transicold truck units and older trailer units that use a mechanical expansion valve, the valve will require a manual adjustment or, in some cases, replacement based on the age of the model.
Standardizing on lower GWP refrigerants is part of Carrier’s commitment to reducing its customers’ carbon footprint by more than one gigaton, while also achieving carbon neutral operations by 2030, as outlined in its bold Environmental, Social and Governance (ESG) Goals.
For more information about R-452A for transport refrigeration applications, turn to the experts within Carrier Transicold’s North America dealer network.
About Carrier Transicold
Carrier Transicold helps improve transport and shipping of temperature-controlled cargoes with a complete line of equipment and services for refrigerated transport and cold chain visibility. For more than 50 years, Carrier Transicold has been an industry leader, providing customers around the world with advanced, energy-efficient and environmentally sustainable container refrigeration systems and generator sets, direct-drive and diesel truck units, and trailer refrigeration systems. Carrier Transicold is a part of Carrier Global Corporation.
As inflation remains and fresh produce prices increase, consumer habits have been changing. In July 2022, fresh produce sales were up 4.2 percent, but volume sales were down 4.8 percent, compared to July 2021.
“Inflation, COVID and consumer mobility continue to change shopping and consumption patterns,” said Joe Watson, VP, Retail, Foodservice & Wholesale for IFPA, in a report by 210 analytics.
“The consumer reactions to the current environment combined with supply side volatility are keeping all of us on our toes to understand the latest trends and quickly pivot accordingly,” he added.
In July, inflation was up 15.3 percent for grocery and 12.6 percent for perishables, so on the whole, fresh produce prices were up from last year, at 8.5 percent level on a per-unit basis and 9.5 percent on a per-pound basis.
In addition, the price per unit across all foods and beverages in the IRI-measured multi-outlet stores accelerated further to an increase of 13.3 percent in the five weeks ending July 31st, 2022, versus a year ago.
Moreover, fresh produce sales reached $7.7 billion, surpassing the record set the prior year by 4.2 percent. Fresh fruit added $163 million in sales and vegetables added $147 million when compared to July 2021.
Gains were achieved in many different ways. Avocados, peaches, nectarines and plums had very high inflation, while pineapples and apples had below-average inflation, but robust demand pushed their performances into the top 10 in absolute dollar growth in July.
The fresh share of the produce business has continued to rise steadily and while summer is a top season for fresh produce sales, July 2022 shows that consumers are not switching out of fresh produce because of inflationary concerns.
However, overall, fresh produce pound sales trailed behind year ago levels all throughout 2021 and continue to do so thus far in 2022. In July, pound sales were down 4.8 percent year-on-year.
“Volume sales were a mix with increases for berries and pineapples but down results for all other top 10 sellers,” said Jonna Parker, Team Lead Fresh at IRI.
Berries continued to be the fruit category’s best seller in July. However, unlike in the month of May, where berry sales continued to be more than double that of melons, Parker said: “the gap with the number two, melons, was by far not as big as we’ve seen.”
“In part this has to do with below-average inflation, but we also saw cherries come on strong and mixed fruit moving back in the top 10 sellers due to the Fourth of July sales spike,” she added.
On the whole, compared to 2019, pre-pandemic, prices across all foods and beverages were up 25.2 percent. Dollars remained 17.7 percent ahead and pounds stayed just above 2019 levels by 0.7 percent. Therefore, despite experiencing some volume pressure in the early months of 2022, fruit pulled even with 2019 levels on much better prices in July.
Considering the outlook for fresh produce, Parker commented: “Back-to-school shopping is in full swing and that brings about many healthy produce snacking campaigns at retailers around the country in addition to the final weeks of grilling season.”
A new Green Giant poll shows broccoli remains America’s favorite vegetable in 2022.
The Green Giant brand polled over 5,000 Americans for its annual ‘Favorite Veggie’ open-ended survey to determine consumers’ favorite vegetables.
Key survey findings include:
- Broccoli Takes the Crown (Again): Broccoli is the favorite vegetable in 29 states. Runners up (in order of popularity) are corn, carrots, potatoes and asparagus.
- Flipped on Favorites: More than half of the states (54%) swapped their favorite vegetable pick in 2022 including Iowa – which no longer chose corn as the favorite, but instead selected broccoli this year.
- Corn Continues to Grow: Despite Iowa’s rebuff of corn, 11 states selected corn as their favorite veggie in 2022. A 37% increase in popularity from 2021.
- Kids Crave Veggies: Contrary to popular belief, more than two thirds of parents surveyed (68%) say their kids enjoy eating vegetables.
Survey Data Compilation: 5,321 American consumers ages 18-94 agreed to take an online survey naming their favorite vegetable. The survey was conducted from 4/27/22 through 5/9/2022 and the users were recruited by a Suzy poll.
About Green Giant:
Green Giant® has been been in the vegetable business over 100 years.
Most recently, the Green Giant brand’s launch of its convenient and award-winning Veggie Swap-Ins® line, which includes Green Giant Riced Veggies, Green Giant Veggie Tots®, Green Giant Mashed Cauliflower and Green Giant Veggie Spirals®, has reinvigorated the frozen vegetable category.
Columbian avocado exports to the U.S. soared by 270% for the 2021-2022 season, the Columbia Avocado Board (CAB) recently announced.
The data was provided by the Hass Avocado Board who tracks shipments and sales of Hass avocados from all growing regions.
HAB and other member associations, including CAB, have collectively spent hundreds of millions of dollars promoting avocados in the U.S. in the last decade. The heavy promotions have led to yearly growth and Colombian growers have successfully met that rise in demand with nearly 300 avocado orchards across over 23,228 acres completing the necessary certifications to ship product to the U.S.
Colombia has produced and distributed avocados for decades, however, the growth and popularity of Colombia Avocados has expanded due to access to U.S. market starting in 2018 along with expanding country infrastructure improvements. The 2021-2022 season ended with its largest shipment totals on record shipping over 24 million pounds.
AeroFarms of Newark, N.J. is a Certified B Corp. indoor vertical farming company, planning to increase production of fresh, leafy greens as part of a major operational expansion of its new vertical farm in Pittsylvania County, VA.
This farm, a 138,670-square foot, high-tech facility, could be the world’s largest indoor vertical farm of its kind, according to a news release.
The new AeroFarms indoor vertical farm in Virginia will distribute primarily to the Mid-Atlantic and Southeast markets with the ability to reach about 50 million people within a day’s drive and more than 1,000 grocery retailers.
This distribution will build on AeroFarms’ existing relationships with retailers such as Ahold Delhaize, Amazon Fresh, Harris Teeter, The Fresh Market, Weee!, Walmart and Whole Foods Market.
Virginia won in competition with other states for the project, Virginia Gov. Glenn Youngkin said in a July 26 announcement with other state officials, according to the release.
“Through today’s announcement, Virginia continues to demonstrate itself as the premier location for companies using technology and innovation to disrupt markets, generating massive benefits to consumers and investors alike, while creating new jobs and economic opportunities for the citizens of the Commonwealth,” Youngkin said.
Technology is always driving agriculture forward, state Secretary of Agriculture and Forestry Matt Lohr said.
“This is especially true in the fast-growing indoor agriculture industry, which has the potential to revolutionize how much of our food is produced,” he said.
The state Department of Agriculture and Consumer Services worked with the state Department of Economic Development and Pittsylvania County to secure this project.
Gov. Youngkin approved a $33,000 grant from the Governor’s Agriculture and Forestry Industries Development Fund, which the county will match with local funds. The company is also eligible to receive state benefits from the Virginia Enterprise Zone Job Creation Grant program, administered by the state Department of Housing and Community Development.
“We want to thank Gov. Youngkin and the entire state of Virginia for their tremendous support in bringing AeroFarms to Danville and Danville-Pittsylvania County,” AeroFarms Cofounder and CEO David Rosenberg said in the release.
By Hunter McDade, ALC Dallas
Shippers and manufacturers are relocating in incredible numbers to Mexico as of late. Economic growth in Mexico has caught the attention of many U.S. manufacturers and shippers. Mexico has steadily improved transportation networks, has a young educated workforce, global commerce, and reduced costs.
The most glaring advantage is the cost and quality of the workforce. The average base salary for entry-level manufacturing workers in Mexico is approximately $3.50 per hour. Well below the federal U.S minimum wage of $7.25 per hour. Just because the pay is lower, however, does not mean that the quality of work is less. Mexico graduates on average 130,000 engineers and technicians annually. Lower labor rates also mean lower operating expenses, including costs for industrial space.
Proximity is another main benefit of manufacturing in Mexico. Shipping and supply chain management costs are much lower than in other international commerce such as Asia, Europe, and India. Mexico shares 52 access points which an estimated over 70 million automobiles transit yearly. We also have to consider the United States-Mexico-Canada Agreement (USMCA). The agreement between the three countries encourages free and fair trade and drivers of economic growth in North America. This agreement offers few obstacles for international business and reduces the cost of moving goods internationally.
Improvements in transportation networks, available workforce, and reduced costs have contributed to more produce being transported from Mexico to Texas. Each year the number of produce shipments from Mexico increases. 2007 was the first year Mexico shipped more than 100,000 truckloadsof fresh produce through Texas. The latest reported number was for 2020 when approximately 289,354 truckloads of produce crossed the border. It will be interesting to see updated numbers.
The trade agreement and the completion of the Durango-Mazatlan Highway in 2013, connecting the west coast and east coast of Mexico with a contiguous freeway, have been huge factors in these numbers rising. Fresh produce needs to be transported with care and efficiency, building highways such as the Durango-Mazatlan cuts down travel time, which means fresh produce being delivered promptly and freight savings in the transportation industry.
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Hunter McDade, transportation broker, graduated from Ouachita Baptist University in 2019. Upon graduation, McDade began his career working in the transportation industry. He has been with ALC for over one year.