Archive For The “News” Category
A study by the Colombian American Chamber of Commerce (AmCham Colombia), has found that agricultural exports to the U.S. could grow up to 250% over the next 10 years.
This comes as more than 20 products of the agroindustrial sector have obtained sanitary approval, thanks to the free trade agreement shared by both countries.
Colombia’s agricultural exports have become the most important item within non-mining-energy exports in trade with the U.S. The sector experienceda 59% increase in sales, reaching $3,433.6 million between January and September 2022.
The free trade agreement entered into force 10 years ago, boosting agricultural sales to the North American country by nearly four-fold, according to AmCham Colombia.
Fruits, food preparations, sugars and confectionery products, fish, vegetable preparations, vegetable fats and oils and bakery products are among the products with the highest growth in exports.
Colombia currently exports 244 agricultural products to the U.S., including those with phytosanitary approval. However, there is a potential of 433 more products for a total of 677 products that Colombia can sell to that country.
This is “an important fact within the country’s purpose of strengthening non-mining energy exports and generating resources that will help fight poverty and generate formal employment,” according to María Claudia Lacouture, president of AmCham Colombia
“The agricultural and agro-industrial sector is a major driver of Colombian exports,” Lacouture said.
U.S. imports of Mexican vegetables and fruit through Arizona’s Nogales district ports totaled more than $3.86 billion in 2021, up 1% from $3.82 billion in 2020 and up 7% from $3.6 billion in 2019.
According to U.S. trade statistics from the Census Bureau, the value of Mexican produce moving through Nogales in 2021, by commodity, compared with 2020 and 2019:
- Imports of Mexican tomatoes totaled $671.3 million in 2021, down 11% from $756.3 million but up 17% from $573.2 million in 2019.
- Imports of Mexican onions totaled $29.2 million, up 29% from $22.6 million in 2020 but down 43% from $51.2 million in 2019.
- Imports of Mexican cucumbers totaled $330.4 million, down 1% from $333.9 million in 2020 but up 2% from $323.1 million in 2019.
- Imports of Mexican head lettuce totaled $16.5 million in 2021, up 14% from $14.5 million in 2020 and up 63% from $10.1 million in 2019.
- Imports of Mexican lettuce (except head lettuce) were $116.8 million, up 27% from $92.3 million in 2020 and up 156% from $45.7 million in 2019.
- Imports of Mexican Brussels sprouts were $18.9 million, up 27% from $14.9 million in 2020 and up 69% in $11.2 million
- Imports of Mexican asparagus were $81.1 million, down 10% from $89.7 million and down 23% from $105.8 million in 2019.
- U.S. imports of Mexican strawberries were $21.9 million in 2021, up 1% from $21.8 million in 2020 but down 22% from $27.9 million in 2019.
- U.S. imports of Mexican watermelons totaled $259.9 million, up 6% from $245.4 million in 2020 but down 4% from $271.2 million in 2019.
- U.S. imports of Mexican grapes totaled $539.1 million in 2021, up 8% from $500.5 million in 2020 but down 8% from $587.4 million in 2019.
- Imports of Mexican blueberries totaled $42.6 million in 2021, down 4% from $44.4 million in 2020 and down 16% from $50.9 million in 2019.
- U.S. imports of Mexican citrus totaled $50.7 million in 2021, up 10% from $46.3 million in 2020 and up 29% from $39.3 million in 2019.
- U.S. imports of Mexican guavas, mangoes and mangosteens totaled $145.5 million in 2021, down 2% from $147.9 million in 2020 and down 10% from $161.2 million in 2019.
- U.S. imports of Mexican avocados totaled $47.9 million in 2021, up 64% from $29.3 million in 2020 and up 30% from $36.8 million in 2019.
- U.S. imports of eggplant totaled $45.7 million in 2021, down 12% from $52.1 million in 2020 and down 1% from $46 million in 2019.
Peru will continue to be the world’s main exporter of blueberries in 2022 for the fourth year in a row, as reported by Andina, based on projections by the Association of Peruvian Exporters (Adex).
In 2021, Peruvian blueberry exports reached $1.221 billion, reflecting a 172 percent increase of the previous year.
Expectations for the current year are based on good performance in the season thus far and the distance created from the second largest blueberry exporter (Spain), whose share is half of what Peru has recorded.
Since 2004, the Allen Lund Company has supported the efforts of Navidad en el Barrio, an organization dedicated to helping the underserved communities of Los Angeles. Started by former NFL player, Danny Villanueva, and students from UCLA, their mission was to provide a robust Christmas dinner to families in Southern California. The past couple of years have proven to be quite challenging for most, but with great efforts, Navidad en el Barrio has been able to succeed with amazing donors.
“Every year, we look forward to working with Navidad en el Barrio to collect, organize, and distribute groceries for families to make a healthy Christmas dinner. We also rely on our network of truck drivers to move the donations,” said Nora Trueblood, Director of Marketing at ALC, “This year we had help from Jose Roberto Gonzalez of JRG Trucking, who donated his time and truck, Nicolas of County Line Transport Corp., and Taffy of Dreamland Trucking. A&E Arias Transport assists with many loads each year.”
ALC employees volunteered to secure dry goods, produce, and perishables as well as, assist with the transportation of the goods to California for distribution via Navidad en el Barrio.
“More than ever, there is a need for good food for families in need all around Southern California. Once again, Navidad en el Barrio stepped up to provide bags of groceries to more than 15,000 families. Allen Lund Company and ALC Logistics played a crucial role in securing and delivering fresh produce and other grocery items to this program. In addition, we worked directly with Catholic Charities and St. Vincent De Paul to be onsite with the families to facilitate a better Christmas. We are blessed to share our blessings,” stated Executive Vice President, Kenny Lund.
The Allen Lund Company appreciates our Navidad donors immensely and we thank you for your generosity in helping a great cause.
As we celebrate the birth of Christ, may each of you have a Merry Christmas. Hopefully you will be able to spend time with those you love most.
Pray for peace, good health and joy.
Prices of shipping containers have fallen by two-thirds this year after reaching figures tenfold on major trade routes during 2021, according to Investors’ Chronicle. Rates slowly began falling in the third quarter of 2022 and are expected to continue to drop, the outlet reports.
The estimated cost of shipping a 40 foot container from China to the U.S. West Coast has dropped by 84% since the start of April to $2,470, according to Freightos Baltic Index.
Although the rate is 86% lower year-on-year, it is still 80% higher than in October 2019, before the onset of the pandemic.
Shipping container prices for routes between China and northern Europe began their decline in January, Freightos’ head of research Judah Levine said.
The executive quoted the hit to disposable incomes from higher inflation and the shift in spending from goods to services as the two main factors for the decrease.
Consequently, as lower demand sets in, the congestion issues that have affected major ports around the world is also starting to ease. Prior to the pandemic, only around 3% of global container ships were held up due to this problem. Today, this affects 8% of vessels, a considerable drop from 14% in January 2022.On the other hand, contract rates are also in decline. Shipping data firm Xeneta’s index tracking contract rates from China to Europe recorded its biggest ever month-on-month drop of 8% in October. However, the figure is still 64% higher than in January 2022.
By Makenna Christensen, Software Sales Coordinator, TMS
I graduated this past May from Marquette University and, shortly after, started working at the Allen Lund Company. I have had the opportunity to jump feet-first into one of the country’s most vital industries under immense pressure since the pandemic. To say I’m a newbie would be an understatement, but the best part about being a newbie is that I offer a fresh perspective on the industry. So, here are a few takeaways from my first five months.
The transportation industry is the most critical sector of the American economy, yet it is underappreciated. Without it, people across the nation would be unable to access even the most basic necessities. We often forget that every trucker, broker, and dispatcher is just as essential as our firefighters, nurses, and doctors. Luckily, perceptions are changing; recent polling found that 87% of voters have a favorable perception of the trucking industry, a 20% increase from 2019. Personally, I think these everyday heroes deserve a huge round of applause.
In addition to recognizing these essential workers, we also need to note that we are in an age where digital technology has become the norm. How is such a vital function still stuck in the dark ages? It is estimated that today, approximately 40% of all containerized transactions are still reliant on the physical transfer of paper BOLs. The economic benefits of digital BOLs are immense, with some estimating that widespread adoption of electronic BOLs could save upwards of 6.5 billion dollars for all stakeholders involved. Paper BOLs may be the most blaring example of a technological gap, but there are still businesses across the country that process all their shipments on pen and paper. By digitizing processes with cutting-edge technology, like AlchemyTMS, these companies can improve efficiency and, ultimately, their bottom line.
The most important insight I have gained is that I need to learn more. My first few months merely scratched the surface of the industry’s processes, needs, and limitations. My training has been a team effort that has exposed me to opportunities to expand my knowledge every day, and I look forward to learning more with you.
*****
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.
The North American market remains crucial for the blueberry industry, according to Dutch multinational banking and financial services company Rabobank. Because of the U.S. is one of the main destination markets, it is focusing on availability as demand for year-round conventional and organic blueberries remains steady.
Rabobank noted in a report on the global blueberry industry, while fresh blueberry production in the U.S. has grown at a compound annual growth rate (CAGR) of 3% over the past 10 years and at a rate of 7% over the past 20 years, availability in the U.S. market has expanded at CAGRs of 9% and 11%, respectively.
“Since 2016, U.S. imports have consistently outpaced US domestic production as the industry has focused on providing reliable year-round availability to U.S. consumers,” the report said.
On the other hand, the appraisal states U.S. exports have remained flat or declining. Going forward, U.S. blueberry imports “will continue to grow during the U.S. offseason, potentially setting new records every year for the next few seasons.”
In 2021, exports of non-organic fresh highbush blueberries from the US were 14% higher than in 2012, showing an increasing concentration of shipments with Canada as their market destination.
Over the past decade, other markets importing U.S. produce included Mexico, South Korea, Taiwan, Japan, Singapore, and Hong Kong.
During the January-July period of 2022, U.S. imports increased 10% year-on-year as the Peruvian season has been starting earlier every year. Also, 2021 marked the first calendar year Mexico displaced Chile as the second largest supplier of non-organic blueberries to the U.S. market .
U.S. imports from Argentina and Uruguay have dropped significantly in recent years as these countries face increased competition in the international market. The average annual unit value of U.S. imports appears to have stabilized as supplies have increased during the shoulders of the season, when prices were the highest.
Harvested acreage in selected U.S. states has almost doubled over the past 15 years, Rabobank notes. According to USDA figures, harvested area in Washington and Georgia has grown fivefold and fourfold, respectively, to over 20,000 acres in both states. Moreover, most states show a positive trend in harvested acreage.
The report states average yields of tame blueberries vary significantly by state. Volumes go from 5,000 to 6,000 pounds per acre to 10,000 to 11,000 pounds per acre, according to government statistics.
FourKites, a Chicago-based transportation visibility company and Food Shippers of America have released the results of a survey of more than 115 industry leaders about logistics challenges in the food and beverage supply chain.
Results, according to a news release, reveal that the three biggest challenges facing the food shipping industry are:
- Labor and talent management (49%)
- Transportation capacity issues (39%)
- Supply and demand planning disruptions (35%)
Shippers indicated that COVID-19’s impact on labor (56%), over-the-road capacity constraints (44%), port delays and congestion (30%) and changes in consumer behavior or buying patterns (22%) have all disrupted operations and created or worsened challenges, the release said.
Since the pandemic began, more than 30% of respondents reported they have seen a drop in customer loyalty, while 55% have seen a sales decline or miss due to product shortages, according to the release.
About three of four who responded to the survey said they are “concerned” or “very concerned” that rising inflation and geopolitical uncertainty will negatively impact sales during the fourth quarter of 2022, according to the release.
According to recent FourKites data, the 28-day average food and beverage shipping volume is down 1% year-over-year, compared to a nearly 10% decline in shipments for all other industries, the release said. The 28-day average percentage of food and beverage deliveries delayed has remained stable throughout the year, hovering around 27.5%.
“Food and beverage shippers have contended with a lot lately, as the industry has been more affected by product and material shortages than most, and for goods that are in demand year-round,” Glenn Koepke, FourKites general manager of network collaboration, said in the release. “Those who have navigated supply chain disruptions the most successfully are companies that have leaned heavily on technology and collaboration to identify and address issues before they snowball into major events.”
The food supply chain is investing in technology and automation, the survey said.
“If we’ve learned anything over the past couple of years, it’s that disruption is going to be continuous, and we need to have visibility throughout our supply chain,” Melissa Wreath, senior director of account management at ArrowStream, a foodservice supply chain technology, said in the release. “FourKites allows us to have a real-time understanding of where things are throughout the entirety of the network. Without it, you’re continuously playing catch-up.”
A whitepaper about the survey is available from the FSA website.