Archive For The “News” Category
Global logistics company C.H. Robinson of Eden Prairie, MN and Waymo Via of Mountain View, CA, the trucking and local delivery unit of autonomous driving technology company Waymo, have formed a long-term strategic partnership to mutually explore the practical application of autonomous driving technology in logistics and supply chains.
The partnership combines the benefits of Waymo’s innovative autonomous driving technology, the Waymo Driver, with C.H. Robinson’s Navisphere technology, which is the world’s most-connected logistics platform.
The collaboration will focus, initially, on running multiple pilots in the Dallas-Houston transportation lane, with Waymo Via autonomous trucks hauling C.H. Robinson’s customer freight. During and after the pilots, the companies will collaborate to shape the future development and expansion of autonomous driving technology as an additional transportation solution. This will provide much-needed capacity, help improve the carrier and driver experience and address the business challenges posed by long-term driver shortages.
“We are excited to partner with Waymo Via to explore how autonomous driving technology can help bring increased capacity and sustainability into our logistics strategies. Together, we are going to harness this emerging freight technology and its potential on behalf of customers and carriers,” said Chris O’Brien, Chief Commercial Officer at C.H. Robinson. “We believe there is a real opportunity to bring our scale and information advantage to bear to help develop transportation solutions for them and their ability to participate in and benefit from AV. C.H. Robinson is also best positioned to represent the role of drivers and small and mid-size carriers in a more autonomous future.”
“We look forward to this collaboration with C.H. Robinson, both for their deep roots and experience in logistics and transportation, but also as a company that shares our vision of how technology and autonomous trucking can change our industry for the better,” said Charlie Jatt, Head of Commercialization for Trucking at Waymo. “C.H. Robinson’s size, scale and platform gives us access to rich and unique transportation data along with customer relationships and pilot opportunities to help bring our Waymo Via solution to the market.”
Bobalu Berry Farms is celebrating its 60th anniversary this year and the Jones Family has announced it has transitioned to a fully integrated company.
Headquartered in Oxnard, CA, Bobalu for the first time will ship California fresh strawberries 12 months a year. In the past it has typically relied on fresh volume from Mexico during the winter months after the Santa Maria fall crop concludes, and before the spring season kicks off in Oxnard.
However, for the first time as the 60th anniversary is celebrated in 2022, the company has added a fall Oxnard crop in addition to Santa Maria’s fall program that will come on a bit later carrying fresh California fruit into 2023. Now Oxnard will be the first and the last district harvesting each year for the company within the state. The addition of the crop from Mexico will compliment domestic fruit providing a beneficial overlap during the holidays.
Bobalu points out in 2021 it introduced software integration as part of its expansion plans.
Columbian ag exports have set a new record reaching $8.496 billion in 2021, with 27 countries having opened their markets to 57 Colombian products through the government’s Health Diplomacy strategy. The announcement was made recently by Colombia’s Ministry of Agriculture.
The main destinations of Colombian exports during 2021 were the United States, with a participation of $3.147 billion, which represents 37.0 percent; Belgium, with $447 million, with a percentage of 5.3 percent; the Netherlands, with $399 million, representing 4.7 percent; and Germany, with $362 million, with a total of 4.3 percent.
Agronegocios reports this figure is 112 percent more than the goal established within the National Development Plan and 20 percent more than the $7.027 billion exported the previous year.
According to the report of the National Administrative Department of Statistics (Dane), traditional products such as coffee, bananas and flowers accounted for 62.8 percent, while non-traditional products represented 37.2 percent.
Among these non-traditional foods, the total amount was $3.162 billion. Colombia saw a considerable increase in beef and offal (the entrails and internal organs of an animal used as food), with a 120.7 percent boost from last year; milk and its derivatives, with 85 percent; Tahiti lime, with 60.3 percent; passion fruit, with 55.1 percent; and avocado, with 50 percent increase over 2020.
East Coast North America container ports congestion worsened as more ships diverted to avoid West Coast gridlock, further delaying the flow of goods to consumers and driving up costs, according to S&P Global Platt.
There where were 31 ships anchored off the Port of Charleston, South Carolina, Feb. 22 while another 13 were waiting off the coast of Norfolk, Virginia, according to Platts cFlow trade-flow analytics software.
At the Port of Houston, 11 ships were anchored in queue to berth and near the Port of New York and New Jersey, nine ships were queued.
“We’ve had our boxes sitting and waiting to enter New York/New Jersey for more than two weeks,” an importer based on the East Coast said. “It’s impacted us for sure but with nearly all ports facing the same situation, there’s nothing we can do to avoid it for now.”
Port congestion at the Los Angeles/Long Beach port complex still overshadowed the East Coast, with 66 ships in queue to berth Feb. 22, down from a record of 109 ships on Jan. 9, according to the Marine Exchange of Southern California.
Platts cFlow data showed four ships anchored near the ports with one drifting nearby. The Safety and Air Quality Area was established in November to reduce air pollution by keeping waiting ships 150 miles off the California coastline, and many shipping lines electing to slow steam the trans-Pacific voyage to save on fuel.
Other West Coast ports have reduced congestion during the Lunar New Year slowdown in China earlier in February. There were nine ships in queue at the Port of Vancouver and six ships waiting to berth at the Port of Oakland, while Seattle-Tacoma had eliminated its queue by Feb. 22, according to cFlow.
Meanwhile, the number of container ships waiting for berths in Los Angeles/Long Beach has continued to decline, falling to 66 on Wednesday — as low as it was back in mid-September.
The longer voyage from Asia to the US East Coast through the Panama Canal loses its appeal if wait times for transit are long at arrival, however, shipping lines are looking to increase rates on the route in March with increased demand.
The Port of Savannah was one bright spot, having eliminated its queue of ships at anchor by deploying five pop-up container yards across the Southeast US to move cargoes out of port terminals. A buildup of cargoes and equipment in the ports tends to slow productivity.
Market participants will closely watch developments with the International Longshore and Warehouse Union representing West Coast port workers, whose multi-year contract with shipping lines and marine terminals expires July 1. West Coast port operations were disrupted for months when contract talks hit an impasse in 2014-2015, causing many shippers to divert to the East Coast wherever possible.
“A West Coast labor strike could be the biggest issue for shipping this year,” a US-based freight forwarder said. “That could see widespread force majeure declarations on contracts between [cargo owners] and shipping lines, and a huge swing in higher spot rates to the East Coast.”
The Chilean fruit industry and authorities have marked the first shipment from the port of Talcahuano (San Vicente Port) en route to Los Angeles, California, according to PortalPortuario. This adds another option for the country’s fruit production to reach northern markets for fruit harvested in both Central and Northern Chile. The first shipment took place the week of February 7th and included 9,210 pallets of fresh fruit, including blueberries, grapes, pears and stone fruit.
The development is part of a strategy from the port concessionaire San Vicente Terminal Internacional (SVTI) and the port operator Puertos de Talcahuano to diversify the sectors served by the facility.
“This first shipment of this year’s refrigerated fruit confirms the multipurpose work of our concessionarie SVTI, and at the same time demonstrate that the San Vicente Port is an attractive option for agricultural exporters not just in the central and southern regions of Chile, but also from the north”, said Guacolda Vargas, development and sustainability manager of Puertos de Talcahuano.
This first logistical run included the participation of around 300 refrigerated trucks that moved goods from the regions of Coquimbo, Valparaíso, O’Higgins, Maule and others. Authorities from Chile’s agricultural and livestock service SAG and fruit exporters association ASOEX were also on hand.
Chile’s fruit industry depends largely on the ports of San Antonio and Valparaiso in the center of the country, both of which have suffered in the past from logistical bottlenecks and labor issues.
Over 70% of U.S. households ordered groceries — including fresh produce — online in 2021, at least once.
The U.S. online grocery market captured $8.9 billion in sales during December as more than 69 million households shopped online for groceries, according to the Brick Meets Click/Mercatus Grocery Shopping Survey .
December’s results increased annual online grocery sales to $97.7 billion for 2021, as more than 70% of U.S. households, or 93 million, received one or more orders during the year, according to a news release.
Brick Meets Click conducted the survey on December 29-30, with 1,836 adults, 18 years and older, who participated in the household’s grocery shopping. Responses are geographically representative of the U.S. and weighted by age to reflect the national population of adults according to the U.S. Census Bureau.
Even though most grocery retailers used third-party delivery platforms when they began selling online, the U.S. is a pickup-dominant market. That dominance continues across markets of all sizes, except in some of the largest urban markets where delivery overtook pickup for the first time in December 2021.
Full-year results for 2021 showed that the pickup segment grew its share of online sales to 45%, up 5 percentage points versus 2020, while delivery’s share remained basically unchanged at 33% and ship-to-home’s share dropped 5 points to 22%.
“If retailers are surprised by these results, it’s likely because they are missing a broader view of how and where customers are shopping online for groceries,” Brick Meets Click partner David Bishop said in the release. “Even before the pandemic started, pickup was preferred over delivery. Then in April 2020, pickup took the top spot away from ship-to-home, and it’s kept that spot ever since.”
For 2021, the average number of orders placed by Monthly Active Users (MAUs) held relatively steady at 2.74 per month, down just 1% versus 2020. However, the volatility in 2021’s monthly order frequency dropped 60% versus 2020 levels, signaling that buying patterns are becoming more entrenched at a level that is 35% higher than pre-COVID levels, according to the release.
When 2021’s online share of total grocery spending is adjusted to exclude ship-to-home because most grocers do not offer this option, the results reveal that the combined pickup and delivery segments captured 10% of total grocery sales, up 2 points from 2020.
Throughout December 2021, the share of grocery’s monthly active users who also placed at least one online order with mass retailers jumped to 29.1%, setting a record high for this shopper metric. For these households, cross-shopping with Target rose sharply while Walmart dipped slightly, and the gap between the two retailers shrank to only 2.5 percentage points, the smallest it has ever been.
“The state of online grocery in the U.S. today underscores not only the need for grocers to compete online for sales, but also the imperative to develop and implement more sound strategies that improve profitability as sales growth becomes more challenging,” Mercatus president and CEO Sylvain Perrier said in the release.
That means consumer satisfaction is paramount, requiring operations be efficient for the retailer and to cater to consumers’ quality and convenience demands, he said.
The Port of Philadelphia, PhilaPort, had a record-breaking year in growth in 2021.
The Port saw double-digit growth in containers, breakbulk and overall port tonnage for the year.
Year-to-Date TEU volumes have increased 15% to 739,323 TEUs, with imports growing 16% and export 15%. PhilaPort surpassed its 2020 total TEU count of (640,799), marking another new milestone.
“It has been an interesting year full of challenges and opportunities,” said Jeff Theobald, PhilaPort Executive Director and CEO. “Not only did we surge in container volumes, but some BCOs (beneficial cargo owners) shifted to breakbulk shipments. PhilaPort is one of the only U.S. ports that has several facilities that are purpose-built to handle breakbulk. PhilaPort steel volumes were up 196%, cocoa volumes went up 106% and wood pulp & lumber volumes increased over 10%.”
Breakbulk YTD cargo volumes grew 19% to 1,288,226 metric tons. Breaking our end-of-year volumes from 2020 (previous 1,083,427 metric tons).
Overall Port tonnage YTD volumes grew 10% to 7,062,523 metric tons, crushing the Port’s highest record set back in 2017 at 6,868,747 metric tons.
Other December Cargo Highlights (Year-End Summary):
• Steel Tonnage +196% YTD
• Wood Pulp +11% YTD
• Lumber +11% YTD
• Cocoa Beans +106% YTD
• Vessels +7% YTD
PhilaPort, The Port of Philadelphia, is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing, and promotion of port facilities along the Delaware River in Pennsylvania, as well as strategic planning throughout the port district. PhilaPort works with its terminal operators to improve its facilities and to market those facilities to prospective port users around the world. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania.
Mediterranean Shipping Co. has become the word’s largest shipping line in terms of capacity, according to data compiled by Alphaliner and published on recently by Bloomberg.
The Danish carrier A.P. Moller-Maersk A/S is no longer the world’s largest container line.
MSC’s fleet can carry 4,284,728 standard 20-foot containers, 1,888 more than Maersk, giving both a market share of 17%.
Maersk, which first entered containerized trade in 1975, has held the top spot for decades. The carrier has been a pioneer in the industry, often breaking records by building the biggest ships.
More recently, it has invested in vessels that can sail on carbon-neutral methanol. It still has the most capacity in terms of owned vessels: MSC has about 65% of its capacity from chartered ships whereas Maersk only has 42%.
After struggling to make money for much of the past decade, the container shipping industry just had its most profitable year ever as pandemic-driven demand for consumer goods strains capacity on vessels. Freight rates out of Shanghai have jumped about five-fold over the last 18 months.
“We never set a specific target to be the biggest,” MSC Chief Executive Officer Soren Toft said in an emailed comment on Wednesday, adding that he’s focusing on growth and profitability.
Maersk CEO Soren Skou last month reiterated in an interview that holding the top spot isn’t important for the Copenhagen-based company, which is investing on expanding its land-based logistics where profit margins are higher.
Chilean fruit exporters are experiencing lower profit margins due to the increased cost of ocean freight, according to the Association of Fruit Exporters of Chile (ASOEX) and the Agricultural Society of Biobio (Socabio).
ASOEX reports rates are increasing considerably in relation to the freight paid the previous two years.
The exporters association notes a U.S. study shows 25 percent of the price consumers are paying corresponds to the freight issue.
This hike has a direct impact on fruit producers and exporters throughout Chile due to freight increases and is one of the fundamental concerns of the industry is specific commodities, such as cherries, table grapes, peaches, nectarines, and kiwis, cannot directly absorb the increase in the cost of the freight.
Socabio reports the cost of freight has risen 30 to 40 percent, which affects the profitability of the exported crops, although it depends on the crop; in the case of fresh fruit, it becomes more expensive to export because it is important to export the crop quickly.
What will it cost to put out that appetizing spread for the Big Game this year? It will cost about 8% to 14% more than 2021, depending on whom you draft to be on your team for one of the biggest food events of the year.
You will need to work on your blocking and tackling for this year’s big game. Your offensive line of carbohydrates and vegetables will need to keep your rampaging snackers from sacking your quarterback of proteins. While the cost of chips and dips, vegetables and other appetizers are up approximately 2% to 5%, they represent your best value to feed those hungry feasters who are all fired up by the clever ads or big plays.
The action on the gridiron will be tame compared with the action on the grill, where prices are up 12% to 18%. Who’s to blame? Just like an armchair quarterback, everyone has an opinion (sometimes powered by the beer or wine, up 4% to 5%). To say the least, it is as confusing as a broken play with three separate penalty flags on the field and instant video challenges.
Let’s work our way through your shopping list:
Chips/dips
Potato chips: In periods of increased supply disruptions and higher food inflation, the humble potato chip offers a stout defense. The U.S. Bureau of Labor Statistics’ (BLS) January pronouncement of inflation(2) shows a subpar increase of 1% versus this time last year. We can thank American farmers’ and food manufacturers’ strong preparation and deft execution for keeping a lid on the price pressure.
Chips/dips
Potato chips: In periods of increased supply disruptions and higher food inflation, the humble potato chip offers a stout defense. The U.S. Bureau of Labor Statistics’ (BLS) January pronouncement of inflation(2) shows a subpar increase of 1% versus this time last year. We can thank American farmers’ and food manufacturers’ strong preparation and deft execution for keeping a lid on the price pressure.
Guacamole/avocados: There is great news in the ever-popular avocado and guacamole category, with food inflation showing about a 1% increase from a year ago3. Most avocados and guacamole come from our Mexican and South American friends. They continue to expand production and execute, keeping the supply ample. Muchas gracias, amigos!
Salsa: Salsa is an all-important complement to the guacamole. It will be more expensive than the chips and the guacamole in terms of price inflation. Salsa is up 6% from last year. Once again, it’s due to labor, packaging, and shipping, rather a lack of chilis and tomatoes.
Veggies
Make sure you stack your offensive line with vegetable all-stars. We’re playing “Moneyball” here for the win. Carrots, celery, and tomatoes (depending on your format and brand) are roughly the same price as last year. Between checking the BLS and Nielsen numbers, we can see that there are lots of options that are flat (or slightly down). As a smart general manager, you should review your options to buy in bulk and prepare them yourself. This requires some prep time before the Big Game, but hopefully your diners will appreciate your Moneyball savvy.
Wings and things
The proteins are where the trouble has shown up in terms of price increases. The grill represents your spending point of pain. There are a lot of moving pieces to the price increases. Is it the “infamous Big Meat”? Or, higher feed costs for all the animals due to corn and soybean spiking close to 100% over that last couple of years? Maybe, COVID’s impact on processing and supply-chain are to blame? Of course, the answer is all those things and more. Your real question looking at the draft board as it stands is, who should you pick with your next draft choice?
Chicken wings: There is nothing but pain in this category. The USDA says prepared chicken wings are up 14% to 26% (bone-in and boneless respectively). The IQF (individually quick frozen) chickens are up 26%. It would seem the IQF is the bigger loser, but that misses the point that they are still $3.57 per pound versus $7.24 (the average) for the prepared wings. Is that the sound of an air fryer I hear? A great call by the GM for drafting a diamond in the rough.
Pork chops: I am moving pork chops up on my draft picks. The BLS is reporting that they are 7% more expensive than last year, but given protein inflation, that makes them a buy. They might not have the cachet of the next item, but steak is packing a world of pain on the pricing front.
Steak: Steak has always been an all-star, but with a 23% price increase from a year ago, is it having a prima donna moment? The BLS shows $11.06 per pound for USDA choice sirloin (versus $8.98 a year ago). The cattle and beef industry is working both structural and temporary issues at this point. The Biden administration has announced initiatives and money to help and regulate the industry. Those could help, but they won’t help this year.
Cocktail wieners: Here’s one that seems popular by different regions, and they are a crockpot powerhouse. The Nielsen data shows them 7% higher than last year. That moves them higher on my draft board. Maybe a couple of extra pounds in the crockpot will help you manage fourth quarter defense against those going back for seconds (or even thirds).
Hamburger: The BLS says ground hamburger is up 17% from a year ago. It’s nation-wide price shows $4.60 a pound. This isn’t nearly as bad as the steak, but it still represents a real commitment. One of the differences for steak versus hamburger is the sourcing and the demand. The U.S. brings in meat to grind into hamburger from Australia and Brazil (to mention the big two), and the U.S. exports high-end cuts to Asia. These market dynamics led to less price pressure for hamburger versus the steaks.
Shrimp on the Barbie
I guess there are two ways to look at featuring shrimp at this year’s big game. It is up sharply from last year’s $3.60 per pound (at the wholesale import level, according to Urner Barry) to close to $4.40 per pound (same index). That’s a 22% increase. However, last year’s price represented a multi-year low due to COVID reducing restaurant demand. Back in January 2018, the index showed the same shrimp being priced at approximately $4.40 a pound. That is about the same price range as today. Now, unless you are buying by the metric ton, you will pay much more at retail prices, but they should move in a relative strong relationship to what we see in the wholesale pricing.
In the cooler
Soft drinks: Food inflation continues to rear its ugly head in the soft drink world. The labor, packaging, and transportation costs are crimping the industry’s ability to match last year’s prices. Here again your general manager skills will need to be applied. According to the BLS, the 2-liter bottles jumped the most by increasing 12%. In contrast, the 12 pack of cans is up 6%. Both represent big jumps compared to general food inflation. Even so, that 2-liter bottle represents a better value if you can get your attendees to agree on the type and flavor.
Beer: The beer industry continues to struggle with modest demand strength and higher input costs. The BLS reports that beer prices are up 4% from a year ago. No doubt, the brewers are facing higher labor, packaging and shipping costs just like the soft drink segment, but the overcapacity in the industry has muted the price increase. Not a bargain like the carbohydrates and vegetables, but it helps the budget.
Wine: The wine industry mirrors the beer industry with its woes. The BLS reports wine prices up 3%, just like beer. Our California wineries and vineyards continue to struggle with much higher labor, water, and transportation costs. However, global supply capacity is making it difficult to pass those cost increases along. This will definitely work in our favor as we prepare for the Big Game.
Tips for keeping costs low
Go for the guac. With avocado prices holding nearly steady since last year, this is a good bang for your buck.
Pick pork. Although prices are up 7%, it’s a bargain for your meat this year. Things to chew on: pork tacos, pork meatballs, and pork sliders.
Bring on the beer. Prices are somewhat stable. Brews will be a good buy for your buck.
As for the Big Game itself, it’s the Cinncinati Bengals vs. the Los Angeles Rams at SoFi Stadium in L.A.