Archive For The “News” Category
By Brendan McCallum, ALC Rochester
With every produce shipping season comes a new set of challenges, and the 2021 season may be the most challenging we have ever seen. The impact of COVID-19 on the economy has been massive and unprecedented, with every industry being affected in one way or another. While many industries suffered during this time, the agriculture industry saw volumes increase. Add on the usual surge in volume during the produce season, and you see an extremely tight capacity situation.
Shifting focus to the Northeast, which has its heaviest peak of volume in August/September, relying mainly on the production of apples, corn, and blueberries. In 2020 we had seen increases in produce sales within these major Northeast crops, only to see these numbers increase further coming into 2021:
- Total corn production increase estimated at 6.5% between 2019 and 2020, with that trend continuing into 2021, which is in part due to corn exports increasing because of high demand from China and other importers.
- In New York, apple production is expected to increase in 2021 due largely to improving export markets and continued strong domestic demand.
- Coming off a 2020 drought season, Maine has shown improvement in blueberry production in 2021 and will see continued improvements, due to further education/research on climate adaptions.
These are just some examples that will make up for a challenging peak in the Northeast produce season. Around this time, carriers will devote trucks to moving high crop volumes, diminishing available capacity throughout the country. This causes spikes in truck rates, which immediately impacts the ability to book shipments into or out of the affected and nearby states. It is important to apply advanced preparations and have a strategy in place to adapt to various seasonal demand changes. This is the season in which relationships built throughout the year with carriers becomes so important. Having people you can rely on to ship these products during a trying time will help mitigate disruptions and frustrations, ensuring continued success for everyone involved.
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Brendan McCallum is a transportation broker in his first year at the ALC Rochester, office. He has three years of previous experience working in Intermodal Logistics. Brendan attended The College at Brockport where he obtained a Bachelor’s Degree in Sport Management.
A new report shows that Florida’s seaports are poised to recover from a loss of $14 billion over last year.
Leading the recovery is the strong growth in cargo volumes that started in the second part of last year and the recent gradual restart of the cruise industry.
The value of trade decreased more than 16 percent in 2020, according to the annual report from the Florida Seaports Transportation and Economic Development Council (FSTED).
“We knew it was going to hit cruise — obviously with that being shut down — but cargo was a little bit of a rude awakening, to see the impact on that,” Michael Rubin, president and CEO of the Florida Ports Council said.
“The good news, again, is that cargo is back up, and it seems to be doing well.”
The report confirms that most of the declines came in the first part of the year due to the uncertainty around COVID-19.
The recovery occurred in the fall, but most of Florida’s ports experienced declines for the year.
Breakbulk cargo experienced an overall year-over-year increase though, growing 8.8 percent to 7.8 million metric tons (MT) last year.
Despite the current challenges to cruise operations in Florida, the report concludes that the fundamentals of the cruise industry remain strong.
They believe the combination of pent-up demand and widespread vaccinations will result in a full, long-term recovery for the industry.
“With $3.3 billion in capital improvements at Florida’s seaports identified over the next five years, we expect our ports to continue playing a leading role in job creation and economic growth,” FSTED Program Administrator Michael Rubin said.
Among the projects slated are rehabilitation and repairs for berths, construction of new cruise and cargo terminals, and channel and harbor deepening efforts.
Florida’s governor also announced that he plans to devote $250 million from the federal stimulus monies to the ports.
Goodlettsville, Tenn. – Dollar General (NYSE: DG) today announced an operational partnership with Feeding America®, as well as a $1 million donation to the organization, to provide access to food resources in rural and otherwise underserved communities and to proactively address food insecurity across the country. The Company also plans to offer produce in up to 10,000 communities over the next several years, with a meaningful number of those stores in current United States Department of Agriculture (USDA) defined food deserts.
“Food insecurity impacts communities across the country, and given that Feeding America projects that 42 million people may face hunger as a result of the pandemic, we want to be part of the solution for those facing this issue,” said Todd Vasos, Dollar General’s CEO. “With our extensive store footprint, often in communities others have chosen not to serve, Dollar General is uniquely positioned to help combat hunger by offering convenient access to a variety of nutritious foods at affordable prices. Our work with Feeding America builds on these efforts by providing in-kind donations of perishable foods to help nourish and feed those in need. Together with Feeding America and local community food banks, we look forward to making a measurable impact in the fight against food insecurity.”
Produce and Healthier Foods Goals
With approximately 75 percent of the U.S. population living within five miles of one of its general merchandise stores, millions of Americans rely on Dollar General to provide convenient, affordable access to the everyday products they need and want, including the components of a nutritious meal such as milk and dairy products, bread, frozen and canned vegetables, canned fruits, grains and more. Dollar General also has partnered with a registered nutritionist to create DG Better For You meals, which provide healthier recipes for each meal of the day with items sourced from DG stores, and created the Good & Smart® private brand to provide yet another healthier option to customers.
The Company currently offers fresh produce in more than 1,300 stores, providing the top 20 items typically sold in grocery stores and approximately 80 percent of produce categories carried by most grocers. Dollar General plans to expand this offering in up to 10,000 stores, including a meaningful number of stores located in food deserts.
Feeding America Partnership
In partnering with Feeding America, Dollar General is excited to bring together the nation’s largest domestic hunger-relief organization and the nation’s largest retailer by store count to positively impact food insecurity concerns, especially in rural America.
Dollar General’s work with Feeding America will be highlighted by a $1 million donation, as well as in-kind donations of perishable and nutritious food to community food banks. At full operational capacity, Dollar General seeks to provide up to 20 million meals each year*. This will not only help alleviate hunger in the communities it calls home, but also nearly double the number of stores in which Feeding America services.
The partnership further aims to enhance Feeding America’s rural hunger initiatives and provide more food donations to 95 percent of member food banks across the country. Additionally, it aims to support otherwise underserved communities with valuable food resources through Dollar General’s unique real estate footprint with approximately 75 percent of its stores serving communities of 20,000 or fewer individuals.
About Feeding America
Feeding America® is the largest hunger-relief organization in the United States. Through a network of 200 food banks and 60,000 food pantries and meal programs, we provide meals to more than 40 million people each year. Feeding America also supports programs that prevent food waste and improve food security among the people we serve; educates the public about the problem of hunger; and advocates for legislation that protects people from going hungry. Visit www.feedingamerica.org, find us on Facebook or follow us on Twitter.
About Dollar General Corporation
Dollar General Corporation has been delivering value to shoppers for more than 80 years. Dollar General helps shoppers Save time. Save money. Every day.® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, housewares and seasonal items at everyday low prices in convenient neighborhood locations. Dollar General operated 17,426 stores in 46 states as of April 30, 2021. In addition to high-quality private brands, Dollar General sells products from America’s most-trusted manufacturers such as Clorox, Energizer, Procter & Gamble, Hanes, Coca-Cola, Mars, Unilever, Nestle, Kimberly-Clark, Kellogg’s, General Mills, and PepsiCo. Learn more about Dollar General at www.dollargeneral.com.
The Canadian retail industry reviews market share numbers for major supermarket operators and examines the growth potential for U.S. fresh produce exports, according to a new report.
Published by the USDA’s Foreign Agricultural Service, Canada is the largest overseas market for U.S. high-value, consumer-oriented products, with exports reaching nearly $17 billion in 2020. This represents 25% of the total value of U.S. consumer-oriented exports worldwide.
The report said:
- Canada’s retail market is mature and largely consolidated, with five retailers comprising more than 75% of the total retail grocery market;
- The remainder of the market is represented by smaller regional retail chains that include 6,800 independents and 27,000 small and independent convenience stores;
- Approximately 90% of Canada’s nearly 38 million consumers live within 100 miles of the U.S. border;
- The top three consumer-oriented agricultural product categories were bakery goods, cereals, & pasta ($2.2 billion), fresh vegetables ($1.9 billion), and fresh fruits ($1.6 billion);
- U.S. products dominate in imported goods in the Canadian market, but recently implemented Canadian trade agreements with 3rd country trading blocs – CETA (Canada-European Union Comprehensive Economic and Trade Agreement) and the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) – have contributed to increased agricultural export competition in the Canadian market;
- By surface area, Canada is the second-largest country, but over 80% of Canadians live in the country’s 15 largest cities;
- In 2020, Canada’s food and beverage retail sales surged by a record 10% from the previous year – reaching $109 billion, including alcohol sales of $20 billion – as COVID-19 response measures drove double digit losses in food service;
- Consumer demand and established distribution channels with U.S. suppliers continue to fuel produce sales growth, with Canadians spending 21% more on fruits and vegetables than U.S. consumers;
- Online sales in 2020 were up 105% over 2019;
- Investment in e-commerce will be vital to keeping up with consumer demand, and several of Canada’s largest retailers announced new supplier fees in 2020 to offset the cost of fulfillment center investments;
- Unable to develop online fulfillment capabilities independently, many smaller grocery retailers also partnered with delivery platforms (e.g., Instacart) or offered in-store pick-up services;
- The rise in e-commerce has also led to an increase in data and loyalty memberships;
- The success of loyalty programs has been attributed to the customization of promotional outreach (e.g., newsletters, coupons) to targeted customer demographics. KPMG’s 2019 Customer Loyalty Report underscored this fact before the pandemic, noting how Canadian consumer loyalty programs like Air Miles, Triangle Rewards, and P.C. Optimum are enmeshed in Canadian consumer culture.
- Canada’s leading grocery retailers continue to consolidate ownership of the segment and increase their bargaining power relative to suppliers, enabling retailers to set more favorable terms, fees, and requirements.
- The consolidating nature has left multiple suppliers feeling pressured and powerless in their relationships and contract negotiations with grocers. Following new fees suppliers’ associations and politicians began calling for a legislated retail grocery code of conduct to restore greater balance to negotiations with retailers. Some retailers have been advocating for a voluntary code rather than have one imposed upon them.
Top 10 Canadian Food Retailers (by retail sales)
- Loblaws/Shoppers Drug Mart (27%)
- Sobeys/Safeway (22%)
- Metro/Jean Coutu (11%)
- Costco (9%)
- Walmart (8%)
- Overwaitea Food Group (4%)
- Co-ops (3%)
- Couch-Tard (2%)
- North West Company Inc. (1%)
- Dollarama (1%)
Source: Canadian Grocer
By Iyer Amruthur, ALC San Antonio
Lush leaves, warm waters, flourishing flora, are just a few of the things that come to mind in a picturesque way when one thinks of California. But California is not just a “start-all, end-all” vacation spot. Coastal California actually has a lot more to do with you than you think.
Do you enjoy complete and balanced meals? Of course, you do! It’s important to maintain your body and keep yourself properly hydrated and hit all the food groups. Fruits, vegetables, meat, dairy, grains, are all main staples but chances are your fruit didn’t come from a couple of miles down the road, it more than likely came from one of our powerhouse produce states.
Just to name a few: Texas, Florida, and California. These three states play a big role in getting those delicious dinners and popping picnics to come together. Did you know California by itself produces more cash receipts from produce than the entire Mountain/Pacific region states combined or that about half as much comes from Texas, which has 86% of its land [ocregister.com]used for agricultural production?
While this is fantastic for our country to have so many geographic options for crops, sometimes those regions come with a bit of a headache down the road. As you know historically, California has experienced drought from the early 2000s to today, and if you’re a Texas resident you know we’ve been feeling the same. What does that mean at the end of the day for our nation?
Let’s step back for a second and have some breakfast, and figure things out. As you may have heard one of the trendiest foods incorporated into breakfast this side of the decade has been avocados, maybe you’ve seen them aesthetically spread onto toast.
Along with many other functional foods, avocados have almost doubled in price (complimented with far more than double the demand) since a few years ago. Unfortunately, that breakfast might be a little bit more expensive on the west coast now. California is one of our nation’s leaders in producing avocados.
In 2014, California’s last notable drought [businessinsider.com[businessinsider.com] top exports such as avocados, berries, cruciferous vegetables, i.e. cauliflower, cabbage, kale, as well as grapes, and lettuce rose in price anywhere from 17 to 62 cents depending on the product.
It’s not all bad news, we can look at some silver linings while we wait on the clouds to come back and rehydrate our fields. Texas shares a similar palette on many in-demand produce products with California and has seen a recent increase in exports of avocados to pick up the slack left behind.
According to data from the USDA [data.ers.usda.gov] website, avocado demand grew from 155,379 ($1000’s) in December 2020 to 231,835 in Jan 2021 and 315,128 by March of the same year. Many times, when we see a lack of a commodity in one area, we’ll look to grow it somewhere else, or import it.
Texas has the perfect climate for avocados, and also controls some of the main border entries for Mexico, which exports billions of dollars worth of avocados [agmrc.org] every year to us. This new entry point/origin for produce shifts the freight market as well to create demand for trucks in Texas while decreasing the demand in California.
To sum things up, when it starts to “Never rain in [Southern] California” we see the whole nation shift their focuses on backups, imports, and inevitably higher costs. So be sure to avoca-do yourself a favor and pick up some delicious guacamole ingredients while we wait out this drought and get produce to your state from wherever its’ freshest!
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Iyer Amruthur is a business development specialist in the Allen Lund Company, San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.
Hwy Haul co-founder and CEO Syed Aman knows fresh produce is the future of grocery stores. It’s one of the few categories that still drives shoppers to buy in-store. But some points in the supply chain for fresh produce are still stuck in the dark ages, according to a story in GreenBiz webcast.
Using his experience at Walmart, Aman is dragging trucking into the digital age with the added bonus of reducing food waste and eliminating unnecessary transportation emissions.
The trucking industry is fragmented and driven by individual relationships, according to Aman. Hwy Haul is trying to unite every stakeholder — shipper, trucker and retailer — in one place. Hwy Haul’s app digitally connects growers with fresh produce to truckers who can deliver the loads to buyers around the country. According to Max Gorobets, associate director of transportation for Lakeside Produce, one of Hwy Haul’s clients, before the app, would have to get on the phone to call each trucking company to find a truck and a driver to pick up and deliver his load.
Now Gorobets enters his load’s origin and destination information into the Hwy Haul app, and drivers on the other end can decide to accept it.
The San Francisco-based startup has raised $3.3 million in seed funding.
In the trucking sector, anywhere between 20 and 30 percent of miles are driven by empty freights, according to industry research. Sometimes, trucks drive 300 miles just to pick up a load. Those emissions add up. Hwy Haul has reduced empty mileage by 80 percent compared to industry standards by using data science, AI and algorithms, Aman said.
Aman’s key metric of success, however, is reducing rejections and therefore reducing food waste. According to him, produce spends half its shelf life on a truck.
“Produce is a very time-sensitive commodity,” he said.
That means having eyes on the produce at all times during the route. Hwy Haul uses sensors to monitor metrics such as temperature and location that are uploaded in real-time to its portal.
According to Aman, an average of 14 percent of loads are rejected by the retailer once they make it to the destination because of spoilage and damage en route.
Truckload freight volumes hit new highs in June and spot and contract rates stayed in record territory as surging retail imports and peak produce shipments fueled demand for transportation services, according to DAT Freight & Analytics, operator of the largest truckload freight marketplace in North America.
The DAT Truckload Volume Index was 237 in June, an 11% increase compared to May and a record high. The Index is an aggregated measure of dry van, refrigerated (“reefer”) and flatbed loads moved by truckload carriers and an industry-standard indicator of commercial freight activity. A baseline of 100 reflects freight volume in January 2015.
Super High Rates
The national average rate for van loads on the DAT One load board network was $2.68 per mile in June, down 1 cent from the all-time high in May (all rates include a fuel surcharge).
The national average spot rate for refrigerated freight fell 1 cent to $3.10 per mile month over month while the flatbed rate increased 3 cents to $3.15.
Contract truckload rates set records for all three equipment types. The average van rate was $2.73 per mile, up 6 cents compared to May. The contract reefer rate increased 3 cents to $2.88 per mile, while the flatbed rate jumped 7 cents to $3.10 per mile.
Spot load postings decline as more freight moves under contract.
Overall truckload volumes increased last month but the number of loads posted to the DAT One network fell 6.0% compared to May. This marked a shift from the spot market toward more freight moving under contract or other means.
The number of available trucks on DAT One increased 13.2% compared to May. Although capacity remains tight, there are signs that workers are coming back to the industry, with 24,500 new transportation jobs added in June.
With fewer loads on the spot market and more trucks available, load-to-truck ratios declined for all three equipment types. The national average van ratio was 5.6 in June, meaning there were 5.6 available loads for every van posted to the DAT network, down from 6.1 in May. The reefer ratio was 11.6, down from 13.0, and the flatbed ratio slipped from 97.1 in May to 66.8 last month.
In June, shippers faced a supply-driven capacity crunch, said Ken Adamo, Chief of Analytics at DAT: “While the number of trucks posted to the DAT load board network increased significantly in June, overall demand accelerated at a faster pace. The typical seasonal decline in contract and spot rates from now to Thanksgiving looks less likely in 2021.”
Spot truckload rates typically drop after the July 4 holiday with back-to-school and back-to-office retail goods already positioned and produce season past its peak. In some cases, reefer carriers will shift to moving dry van and other types of freight, which could provide relief to retailers seeking transportation services for end-of-year holiday goods.
Usually, 12 to 15% of all truckload volume moves on the spot market. Entering July, that figure is closer to 25% but should tighten as more shippers take a portfolio-based transportation procurement strategy (dedicated, contract and spot, as well as using a mix of both asset and non-asset providers).
Between July 4 and Thanksgiving, weekly truckload volumes of produce typically decline an average of 21%, which translates to reefer carriers hauling 7,300 fewer truckloads per week by the end of November.
Comparing rates entering the market to those exiting shipper routing guides, contract rates were rising at the beginning of July: new routing guide contract rates increased by 7% in the two weeks ending July 1 compared to the prior two-week period. We expect contract rates to remain elevated at least through the fall.
In an effort to speed delivery and meet increasing consumer demand to have goods delivered to their doorstep, Walmart is strengthening its partnership with the on-demand drone delivery startup DroneUp.
Walmart first partnered with DroneUp — operator of small Unmanned Aircraft Systems (sUAS) — in 2020 and launched a pilot program to deliver at-home COVID-19 self-collection kits.
“The trial demonstrated we could offer customers delivery in minutes versus hours. Now, after safely completing hundreds of drone deliveries from Walmart stores, we’re making an investment in DroneUp to continue our work toward developing a scalable last-mile delivery solution, John Furner, CEO and president of Walmart U.S., said in a recent press release.
Furner said Walmart is “uniquely positioned” to advance drone deliveries because of the retailer’s expansive footprint — over 4,700 stores nationwide — plus, 90 percent of the population lives within 10 miles of a Walmart location.
He said Walmart’s investment in DroneUp will apply to flying and ground delivery. The first official operation is being launched at a Walmart store in Bentonville, Arkansas.
“Conducting drone deliveries at scale is within reach. DroneUp’s expertise combined with our retail footprint and proven history of logistics innovation puts us right where we want to be for that day. Because when it comes to the future of drone delivery, we know the sky’s the limit,” Furner said in the post.
DroneUp was the first operator to use the FAA 107.39 waiver, which allows delivery flights to take place over people and moving vehicles. The Virginia startup is an authorized government drone services provider and operates commercially nationwide and for 11 states serving public sector agencies.
Walmart isn’t the only company looking for alternative means of handling fast deliveries. Amazon is planning to launch its own unmanned aerial vehicle (UAV) fleet and Google’s Wing UAV service recently piloted an operation during the pandemic lockdown and delivered books to school children.
By INDUSTRY PRESS RELEASE July 23, 2021
Bridges Produce has built their business on long term partnerships and their relationship with Fruit d’Or is no exception. The Bridges team has worked with Fruit d’Or, for over 24 years and has acted as their exclusive organic fresh cranberry sales representative in the United States for the last 7 years. During this time, they have seen the program grow and diversify across many markets and distribution channels. This Fall, Bridges will be adding Massachusetts based Decas Farms conventional fresh cranberries to their available offerings.
In March 2021, family-owned Fruit d’Or based in Quebec, Canada acquired Decas Cranberry Products Inc. The Patience Fruit & Co organic brand is well-developed in Canada and is a strong organic player in the US cranberry market. Decas Farms has an 80 year history of producing high quality fresh cranberries and cranberry products.
There continues to be opportunities for significant growth across the fresh cranberry category which grew over 4.1% in 2020. Bridges will be able to offer both 8oz. and 12 oz. Patience Fruit & Co. brand organic cranberries and 12 oz. Decas Farms brand conventional cranberries from October through December shipping from three locations – Carver MA, Los Angeles, CA, and Vineland, NJ.
With Decas Farms now under the Patience Fruit & Co’s umbrella, they plan to pack and ship the majority of the organic and conventional fresh fruit at the Decas’ Massachusetts facility. “Bridges is excited to add a Massachusetts based packing house and the additional SKU’s in the Decas Farms label. The combination of Patience and Decas has greatly increased our capacity and efficiency of logistics. We can now cover the full cranberry category with both organic and conventional options with three loading locations in the US,” said Ben Johnson, Bridges Produce’s President. With these increased efficiencies, and hundreds of years of combined experience Bridges expects to provide even higher levels of customer service paired with the superior quality fruit that all three companies are known for.
A record volume of 3.4 million metric tons (MT) of table grapes was traded in the 2020-21 season despite “multiple hurdles”, according to a USDA report.
At the world level, the pandemic doesn’t appear to have limited output as losses by some producer countries are being offset by gains in others, keeping production at 24.7 million MT, just below the record level set in 2017-18, the report said.
In addition, if forecasts are realized, this year could also mark the first time Peru surpasses Chile in production.
“Global trade has faced many challenges this past year due to COVID‐19 and its many effects. Agriculture as a whole has had to overcome, and continues to be confronted with, significant transportation challenges as part of the fallout from COVID‐19,” the USDA Foreign Agricultural Service (FAS) report on World Markets and Trade said.
“Included in these are worldwide shipping delays and container shortages, with resultant high shipping costs, while countries also face labor shortages to varying degrees due to COVID‐19 measures.
“Table grapes experienced further obstacles the latter half of the season that made the year even more trying.”
The report noted that in Peru, striking workers blocked roads and shipments in Ica in December, hitting growers in the top producing region during the Andrean country’s second-largest export month.
Additionally, in the midst of Chile’s harvest in January, unseasonal and torrential rain caused severe damage in three of the main growing regions, it said. Producer associations in O’Higgins, the largest producing region, reported losses of up to 80 percent.
And in March, the cargo ship Ever Given ran aground and blocked the Suez Canal, impacting India’s exports destined for Europe at the peak of its shipping season.
But the report noted that there is also “no relief expected from lower volumes”, with production levels remaining high.
“Adequate supplies are often being met with logistical challenges in getting fruit to import markets, but most major exporters have been able to reach markets, with some even expanding their reach to new destinations. Chile, the United States, and Mexico are the only top producer‐exporters anticipated to see reduced shipments, but mostly due to lower supplies,” it said.
“Despite the litany of challenges, the table grape industry has shown great resilience. With steady high volumes, imports and exports are each projected to reach a record of more than 3.4 million tons.”