Archive For The “News” Category
By Bill Martin, haulproduce.com
I had just been hired by a fresh produce publication in the fall of 1974, and by far, the biggest controversy in the trucking industry was Congress looking to deregulate trucking (and other transportation modes). No one at the newspaper, including myself, knew anything about trucking, much less the profound effects deregulation would have. It was known that most agricultural commodities were exempt from the regulations, but most produce hauls also required a regulated haul on the return trip. I immediately began reading all I could about the subject and tapping into the knowledge of those in the industry. Fortunately, I attended the United Fresh Fruit and Vegetable Association’s trucking division meeting at a hotel near the Kansas City International Airport. It was there that I met Allen Lund of the Allen Lund Company. A friendship quickly developed, and I had someone who was much respected in the industry, intelligent, always made himself available, and had a heart of gold. I can honestly say I’ve never met a better man in my life and I continue to benefit from having known him. Even though Mr. Lund is no longer with us, his values remain steadfast in the Allen Lund Company today.
I became the primary writer on transportation issues and had covered it extensively when Congress passed the Motor Carrier Act of 1980. Some of the major accomplishments of deregulation was ending legalized rate fixing by the large trucking companies, and ending their protected regular routes. Rate wars slashed freight rates, and small trucking companies and owner-operators could negotiate directly with shippers instead of having to lease to a carrier. Deregulation allowed contract rate-making with the regulatory review and opened the door for truck brokers to more efficiently provide match-ups between the demand for transport services and the availability of carriers.
The passage of the Motor Carrier Act of 1980 revolutionized the trucking industry, leading to the emergence and growth of third-party logistics (3PL) providers. This shift benefited the American public by reducing transportation costs, lowering consumer prices, and improving service quality. Over the years, the 3PL industry has evolved into a sophisticated sector integral to global supply chains, leveraging advanced technologies to optimize operations. The legacy of early industry leaders, such as Allen Lund, continues to inspire innovation and excellence, demonstrating the enduring benefits of deregulation for the economy and consumers alike.
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Bill Martin earned a journalism degree from Oklahoma State University and served as a journalist in the U.S. Navy during the Vietnam War. He worked as a reporter for a daily newspaper before writing about transportation and fresh produce for a weekly publication. Combining his expertise, he launched the Produce Trucker’s Network, which aired for 20 years on 60 radio stations across the U.S. and Canada. He retired in 2014, but created haulproduce.com in 2012, which continues today. September 3, 2024, marks his 50th anniversary in long haul trucking and fresh produce.
martinmedia45@peoplepc.com
Fresh Farms, doing business as MJ International Marketing, Rio Rico, AZ announces a significant milestone in its journey of growth and expansion. With the recent acquisition of a new farm in California, Fresh Farms reaffirms its commitment to excellence and innovation in the agricultural industry.
For over 40 years, the Molina family has been cultivating table grapes and a wide variety of fresh vegetables. With the founding of “Las Mercedes,” their flagship farm in Mexico, the Molina Group embarked on a path of continuous growth and achievement.
“Decades of exploration and hard work allow us to supply grapes starting in mid-March from our farms in Jalisco, followed by production from our Sonoran ranches in May and June and subsequently from California starting in July and suppling customers through November,” said Juan Pablo Molina, General Manager of Fresh Farms.
In 2006, their vision for direct market connection led to the establishment of Fresh Farms, marking the beginning of a remarkable journey which further solidified their presence, laying the groundwork for planned international expansion.
In 2011, Fresh Farms made a significant leap with the acquisition of Visalia Produce Sales, a California-based company renowned for its expertise in table grapes, citrus, and specialty fruits. This strategic move enhanced Fresh Farms’ market position and its growth trajectory.
Today, Fresh Farms is acknowledged as a hallmark of excellence in the industry, with sales offices in Mexico, Arizona, and California, supported by a top-notch sales team.
By Michael Patrick ALC Corp.
When thinking about the future of logistics, especially 3rd Party Logistics, I always stop and consider how analytics plays a role. Well, truth be told, they play a very large and important role in the success of the organization. Analytics help to mitigate risk, direct the need for forecasting accuracy, and drive cost efficiencies. At the end of the day all these things are important, but the biggest reason logistics companies use analytics is to meet ever-evolving customer expectations, underscoring the customer-centric approach of these companies.
Forecasting is a really hot topic in the logistics industry. Different types of organizations use all kinds of forecasting. Manufacturers use demand forecasts to set production schedules and manage inbound raw materials. This helps with routing guides and warehousing. “Through data analytics, logistics companies can identify and mitigate potential risks in the supply chain, such as disruption, delays and quality issues.” There is also a need for volume forecasts for RFPs (Request for Pricing) and pricing decisions. It seems like everyone in logistics wants some type of pricing forecast. Suppliers want forecast pricing to gauge budget levels, truckers want forecast pricing to help with asset placement, and third-party companies want forecast pricing to respond to RFPs and help indicate potential earning numbers.
With the increase in fraud in the logistics industry it is more important than ever to be on your toes when it comes to mitigating risk. Criminals are growing daily and are getting increasingly bold in their thirst to create havoc in the industry. They are using email addresses that closely resemble real company emails, cell phones that cannot be tracked, and teammates on the inside of suppliers to steal goods from warehouses and even steal entire trailers. When these trailers are found, they are empty, and the items are gone. They are targeting not just valuables like electronics but also loads of vacuum cleaners and clothing. These items are easily sold on the second-hand market. Analytics can be used to identify and utilize carriers with the appropriate level of insurance and vendors with good ratings.
Customers, suppliers, and logistics organizations will continue to rely on analytics to improve efficiencies, grow profits, and create forecasting to meet customers’ ever-changing expectations. With the transportation industry being a moving target, investing in in-house analytics is a great solution to streamline data and adapt to market trends.
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Michael Patrick started with the Allen Lund Company in January 2018 as a senior business analyst. He has over 25 years of third-party logistics and supply chain management experience. Patrick has a B.S. in Business Administration with an emphasis in Marketing from Winthrop University and a Masters in Business Administration from The Citadel.
michael.patrick@allenlund.com
Fort Valley, GA — As nut products continue to show strong growth in the snack category, flavored pecans have emerged as a consumer favorite, driving intentional and impulse sales at grocers, convenience stores and retailers.
Pecan Nation and South Georgia Pecan Company, both multi-generational Georgia pecan companies, have recently joined forces in a move that will expand production, ensure quality, and increase efficiencies to better serve their retail partners and foster continued growth.
Georgia is the largest supplier of pecans in the nation – producing one-third of the pecans enjoyed in the U.S. each year. Pecan Nation has been a leader in growing and marketing pecans for over five generations. South Georgia Pecan, which operates facilities in Georgia and Texas, is the largest pecan sheller in the world, and has developed proprietary processes for developing and processing flavored pecans.
“Combining forces with South Georgia Pecan is a massive boost for our brand because it enables us to continue evolving and expanding, while remaining true to the rich history of our delicious pecans,” said Will McGehee, Partner, Pecan Nation. “We think this is a model other farming companies will be interested in as it allows each company to bring its strengths to the partnership, creating an operational juggernaut that will allow us to effectively compete with large CPG companies.”
The partnership between these two industry powerhouses creates a best-in-class collaboration where growers are more closely tied to processors to deliver unrivaled quality products to grocery, convenience and hardware stores as well as other untapped channels.
This total category approach expands Pecan Nation’s capabilities, positioning them to proactively introduce a variety of innovative snacks to the category, and more nimbly react to the needs dictated by the market. The added capacity ensures a consistently available supply of healthy, flavorful snacks.
“Since its inception, Pecan Nation has been emphatic about having the most flavorful pecans around,” said Duke Lane III, Partner, Pecan Nation. “Our partnership with South Georgia Pecan allows our brand to remain at the forefront of flavor and innovation while keeping our pecans affordable and always available for consumers.”
“I’ve known the people at Pecan Nation for years and long admired their work and impact on this industry,” said Jeff Worn, President and CEO, South Georgia Pecan Company. “They have an ambitious vision for our industry and Pecan Nation has changed the game by moving pecans from being primarily a baking ingredient to becoming a significant part of the snack category. Our businesses are well aligned with similar business values, and by coming together, we will elevate Pecan Nation into the undisputed leader of pecans for the snack nut category.”
“This alliance underscores Pecan Nation’s approach and exemplifies the collaborative spirit that we bring to our retail and distributing partners every day,” said Nick Quast, Senior Vice President of Sales and Marketing, Pecan Nation. “Today we are available across 15,000 outlets, and our partnership with South Georgia Pecan allows us to strategically build out a larger footprint in the snacking category while staying true to the quality of our pecans.”
As the No. 1 snacking pecan brand with a more than 25% three-year CAGR (Compound Annual Growth Rate), Pecan Nation can be found online and in snacking aisles at thousands of grocery, convenience and hardware stores around the country. The alignment of Pecan Nation and South Georgia Pecan bridges a divide between the grower, processor, and marketer enabling both companies to bring an unsurpassed level of expertise and industry history together under the Pecan Nation name.
For more information on Pecan Nation visit ThePecanNation.com.
For more information on South Georgia Pecan Company visit GeorgiaPecan.com.
About Pecan Nation:
Pecan Nation has been growing, harvesting and cooking America’s native nut for five generations, perfecting our process along the way to bring consumers the tastiest pecans around. We offer our delicious pecans in a variety of sweet and savory flavors as well as multiple convenient pack sizes that everyone can enjoy for any occasion. All products are available at ThePecanNation.com, on Amazon, and in snacking aisles at grocery, convenience and hardware stores around the country.
About South Georgia Pecan:
Celebrating over a century in business, South Georgia Pecan attributes its longevity to continuous adaptation and innovation within our ever-evolving industry. We are more than just pecans; our commitment to excellence, profound industry knowledge, and extensive experience are evident from the initial customer interaction. Tradition resonates deeply in our values, reflected in how we cherish relationships with growers and customers alike. Experience the exceptional flavors and quality of SGP at our website, georgiapecan.com.
A 15% increase in mango production is predicted by mango producers in the Dominican Republic compared to the 2023season. The boost is accredited to the government’s support and work done by private organizations.
German Báez, the President of the island’s Banilejo Mango Producers Association (Abapromango), says exports will increase by 39,000 tons, and reach a combined total of 96,000 including local consumption. Exports will reach various countries including the United States, Spain, France, the United Kingdom, Costa Rica, and Panama.
The Dominican Republic is widely known for producing different mango varieties for export and local consumption, including Mingolo, Crema de Oro, Keitt, Kent, Palmer, Parvin, Madam Francés, and one of the sweetest mangoes, Banilejo.
Due to the political crisis, there’s a lack of Haitian Francis mango in the market this season. The Dominican Republic is currently stepping in to fill the gap by increasing fruit production and planting its own Francis mangos. Exports of this variety are expected to start as early as next year.
The country is mostly known for its exports of sugar cane, coffee, cocoa, and tobacco. However, there has been a notable resurgence in the cultivation of mango, avocado, pineapple, melon, and banana, which have become the primary export products, mainly targeting North American and European markets.
For the first time in 13 years, the Dominican Republic surpassed Haiti in mango exports to the U.S. with 8,550 metric tons (MT) shipped in 2022, according to the National Mango Board. Last year, Minister of Agriculture Limber Cruz also announced that the country’s production had gone up 64% in comparison to 2019.
The country’s biggest market partners are the United States, Netherlands, and France.
By Makenna Christensen ALC Logistics
California’s requirements for zero-energy fleets may be on hold, but the push to electrify the transportation industry is far from over. In March, the U.S. Environmental Protection Agency released new emission standards, outlining limits on carbon dioxide emissions that become increasingly stringent each year from 2027 to 2032. While these regulations are well-intentioned, forcing carriers to comply with unreasonable standards will have impacts far beyond the transportation industry.
As of April 2023, there were over 750,000 active motor carriers in the U.S., 95.8% of whom operate 10 or fewer trucks. These small businesses are the backbone of our economy. Without them, store shelves would be empty and we would struggle to find food to put on our tables. Look no further than the 2021 global supply chain crisis to see what happens when shipping demand outpaces truck supply. Like every other business, trucking companies must minimize costs to maximize profitability. When the annual cost of operating battery-electric big rigs is about twice as expensive as diesel trucks, the transition to zero-emission fleets becomes fiscally impossible for some companies. Add-on government mandates, like those in California, and you have a recipe for disaster.
Battery-electric is not the only zero-emission fuel source. Some long-haul drivers have turned to hydrogen fuel as an alternative since it allows them to travel lighter, farther, and faster. However, a lack of fueling infrastructure and large costs associated with ownership are serious barriers to adoption.
Beyond the immediate impacts, the shift to zero-emission trucks will have financial repercussions on millions of consumers. According to a March 2024 study, “The charging infrastructure for a nationwide fleet of 100% electric trucks – from delivery trucks to big rigs – will cost $622 billion.” Further analysis suggests the additional cost will be passed along to consumers, adding approximately 0.5% to 1% to overall inflation. For a nation already waist deep in debt, I’m not sure we can handle that burden.
The goal to cut carbon emissions is desirable, but forcing small businesses into bankruptcy gets us nowhere. If legislators want to enable lasting change, they need to slow down and focus on smaller, more economically sound solutions to our climate crisis. Compressed natural gas (CNG) has been found to reduce tailpipe greenhouse gas emissions by about 20% and could be a welcome alternative to diesel since it is widely available and affordable. Further, the adoption of diesel-electric and gasoline-electric hybrid trucks could help the transition to zero-emissions fleets without bringing our supply chain and economy to a halt. We may not currently know all the answers, but when we empower small businesses to take action we can do just about anything.
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Makenna Christensen graduated from Marquette University in 2022 with a Bachelor of Science in Marketing and Human Resources. In July 2022, she began working as a Software Sales Coordinator for ALC Logistics, the software division of the Allen Lund Company. She joined the Fresh Produce & Floral Council’s Apprentice program in April 2024.
makenna.christensen@alclogistics.com
By Iyer Amruthur ALC San Antonio
Cargo theft in the transportation industry is a long-standing, but rapidly growing issue. One of the most frequent occurrences of cargo theft is during the trade between the U.S. and Mexico. Statistics show up to 49 truckers are assaulted in some fashion in Mexico each day. Other harrowing data shows that at least 50 drivers were killed in 2023 alone.
Starting on February 5, 2024, thousands of drivers from 15 of the largest carrier organizations set out on strike. The goal of the organizers was to seek more patrols from Mexico’s National Guard on roads with a high incidence of theft, more stringent penalties against cargo thieves, and increased support for the families of truckers affected. They ultimately sought to secure common roads and travel for all law-abiding parties, while cracking down on illegal activity.
Another strike penned for August by truck drivers belonging to the Mexican Alliance of Carrier Organizations (Asociación Mexicana de Organizaciones de Transportistas A.C. – AMOTAC) and others was postponed through promises the federal authorities made to increase roadway security measures. This included agreements reached by AMOTAC and authorities, including Mexico’s National Guard, to hold monthly meetings with trucking officials to create enhanced safety measures to combat cargo theft.
However, despite the effort, crime continues to rise. Cargo theft cases increased 4% year over year in 2023 to 9,181 incidents, including 7,862 cases that involved violence. Members of AMOTAC and other trucking organizations held demonstrations on the Mexico-Queretaro federal highway (one of the largest U.S.-Mexico highways for commercial transport) to protest road insecurities.
With tech developments and the continued pressure from multiple parties to secure transit between the U.S. and Mexico, we all hope to see progress and attempts to reduce crime, keep our drivers safe, and get product from point A to point B.
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Iyer Amruthur is a national sales manager in the ALC San Antonio office and has been with the company for three years. He attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.
iyer.amruthur@allenlund.com
Nearly a 9 percent in the first two months of 2024 occurred for Mexican agricultural exports, boosting the country to a record-high agricultural trade surplus, according to Mexico News Daily, using figures from the Ministry of Agriculture and Rural Development (SADER).
Agricultural and agro-industrial exports were worth $9.06 billion in January and February, an increase of 8.85 percent compared to the first two months of 2023.
Agricultural imports increased by 2.3 percent to reach $7.57 billion in the first two months of 2024.
Mexico thus recorded an agricultural trade surplus of $1.49 billion in January and February, a record for the period. The surplus increased 61 percent compared to the first two months of 2023, SADER said.
Mexican-grown tomatoes were in high demand abroad. They brought in revenue of $630 million in the first two months of the year, making the fruit Mexico’s second highest-earning agricultural export (behind beer), according to SADER.
Rounding out Mexico’s top 5 agricultural exports in January and February were tequila and mezcal ($621 million); avocados ($594 million); and fresh strawberries and raspberries ($531 million).
The majority of Mexico’s agricultural and agro-industrial exports go to the U.S., but Mexican products also reach many other countries around the world, including markets in Asia and Europe.
The agricultural products that recorded the next highest export growth were orange juice (62.4 percent); guavas, mangos and mangosteens (48.6 percent): grapes and raisins (38 percent); and cattle (35.9 percent).
AP Moller-Maersk said it will resume its north-south service through the Panama Canal after its suspension in January due to low water levels and reduced transits.
The OC1 service, resuming May 10, runs between the U.S. East Coast, specifically Philadelphia and Charleston ports, Australia and New Zealand.
When the service was paused in January, as a result of drought conditions, Maersk decided to split it into an Atlantic and Pacific loop combined with a land bridge in Panama with a rail connection.
This set-up will be dropped and the service will revert to its single former rotation, operating with 11 ships of between 3,100 TEU and 3,800 TEU, according to Alphaliner.
On March 11, the Panama Canal Authority announced they would increase daily transits that month from 24 to 27 ships, in response to the current and projected level of Lake Gatun, which feeds the canal.
The authority said the measure allows most vessels wishing to transit the canal to request a reservation.
According to Clarksons Research, the average wait time at a defined Panama Canal anchorage in the first quarter of this year was 23 hours, up from the 16-hour average in 2022, but still down from the 36-hour average in December last year.
Transit restrictions have not been as severe as originally planned, with liner solutions mitigating some of the impacts, such as using the land bridge utilizing the rail connection across Panama.
By Josh Rivera, ALC St. Louis
Everyday, we hear more and more about how AI is being implemented in all sorts of industries across the globe. There is a need to automate certain processes in all aspects of business to increase efficiency, especially in the logistics industry. Though we are in the early stages of adopting AI and learning where it can provide the most benefit, we are already seeing some of this technology in warehouse automation and robotics and the early stages of driverless vehicles. AI can assist in data collection and analytics to provide real-time information.
In Bart De Muynck’ Forbes article The True Role of AI in Logistics, he states, “AI is being used to improve data quality, generate data through Generative AI when real data is not available and provide valuable insights through predictions (like an ETA or dwell times) or forecasts (available capacity of assets or at ports). By implementing real-time visibility, companies can share information, updates, and forecasts with suppliers, customers, and partners.” We know AI can offer much but, just like everything else, it’s not perfect. Transportation is and will remain a human central function, but paired with AI technology can propel the industry forward. The key is for companies to stop looking in the past, and use this information to help predict and adjust for the future.
Even in the early stages, AI is demonstrating its value in the logistics industry. As time progresses, its capabilities will only improve. It’s only a matter of time before we witness its widespread adoption. AI’s limitless potential is a compelling prospect for every industry, including logistics, in managing and optimizing their supply chains.
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Josh Rivera studied at Western Illinois University where he received a BA in Marketing. Josh has been working in the ALC St. Louis office for six years as a transportation broker. Out of the office, he is a musician who enjoys playing the drums and ukulele. He has two dogs, Bella and Louie, who love to play and keep him busy.
josh.rivera@allenlund.com