Archive For The “News” Category

Chiquita is Shifting Banana Shipments from Honduras to Guatemala

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Chiquita Brands is stopping shipments of bananas from Honduras in favor of neighboring Guatemala.

The company has announced it will stop using Puerto Cortés, instead trucking the fruit across the border to Puerto Barrios, according to Honduran news site Tiempo. The decision was reportedly made before the Covid-19 pandemic, and Chiquita had already begun shipping Honduran bananas from the Guatemalan port. The move reportedly relates to the Guatemalan Government’s move allowing Chiquita to operate its own dock in the port for banana exports, which is more economical for the company.

Since July, Chiquita has only maintained administrative offices in Honduras in La Lima and San Pedro Sula.

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Preventing Rejection of Refrigerated Loads – Part II

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By Jennifer Brearley Transportation Broker, ALC Richmond

In Tuesday’s article, we discussed some of the most important things to consider when selecting a carrier for sensitive, refrigerated loads. In addition to carrier vetting, it is also crucial to ensure that hot product is not being loaded into the trailer and equipment failure or human error are avoided. Below are some tips that could help you steer clear of these issues leading to rejected loads and claims.
Prevent hot loads before they get on the truck.

  1. Refer trailers are not designed to set product temperature. They are designed to maintain it.
  2. Freshly picked loads that sit on the dock in extreme heat waiting to be loaded may be out of temperature tolerance at loading. According to the article, The Keys to Preventing Rejected Loads in Refrigerated Transportation, “as much as 32% of all cargo is loaded at the wrong temperature. Poor loading practices like these can result in loads spoiling in transit if the temperature is incorrect. No matter how chilled the reefer is, the temperature is going to rise – this causes condensation, which results in spoilage.”
  3. Ensure the driver understands proper pulping practices. Prior to loading, and during unloading drivers should pulp and record temperatures of at least every other pallet of the product loaded on to their trailer.
  4. Drivers should be instructed not to accept the warm products at the shipper. Once they sign for it, they are responsible for it.
  5. Document all communication with the driver and the shipper regarding temperature discrepancies prior to loading.
  6. In transit pulping when possible is preferred as well. Newer refrigerated trailers have advanced temperature monitoring that will notify the driver and dispatch if something is wrong which is helpful in today’s world where most loads are sealed.

Avoid equipment failure and human error.

  1. Proper routine maintenance is a must. Loading an unknown carrier with a sensitive product is a huge risk. The vast majority of loads hauled pick up and deliver without incident. A temperature claim resulting from poorly maintained equipment will result in unrecoverable costs and damaged relationships. Ask drivers you are unfamiliar with about their maintenance routines. You will be able to tell pretty quickly how diligent they are about it. There are up to 200 possible alarm codes in newer reefer units. That can be 200 potential problems. Add to that a damaged chute, leaking trailer, or damaged seal and the risk of loss multiplies.
  2. Incorrect unit settings can happen for a number of reasons. Human errors can result in a ruined load. -20°F instead of 20°F are vastly different and such errors result in a disaster for the cargo inside the trailer. Regular communication from pick up through delivery is crucial. It is easy to assume that the temperature today is the same as it was yesterday. This is a dangerous assumption.

Educate yourself on the products your customer ships, the methods the shipper utilizes for loading trucks, and the general function of refrigerated trailers. This is the most important part of the vetting process. In order to effectively communicate with the carrier, you have to know what you are talking about.
Rejected loads are undoubtedly something we want to avoid. While these vetting processes may not prevent every rejected load, they can certainly help to lower if not eliminate the avoidable ones. (Part I was published on July 28th.)

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Jennifer Brearley began working for the Allen Lund Company in February of 2019 as a transportation broker. She joined the company with five years of domestic and international shipping experience. Brearley attended Western Governors University and received a BA in Interdisciplinary Studies.

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Kroger Reveals Three Regions for Next Automated Fulfillment Centers

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The West, the Pacific Northwest and the Great Lakes have been selected by Kroger for its next three automated fulfillment centers.

The facility in the West will be 300,000 square feet, the facility in the Pacific Northwest will be 200,000 square feet, and the facility in the Great Lakes will be 150,000 square feet, according to a news release. The exact locations of the new centers have yet to be revealed.“Kroger and Ocado are building an e-commerce ecosystem across the U.S. that will deliver unrivaled online experiences to more customers, in more ways and in more markets,” Luke Jensen, CEO of Ocado Solutions, said in the release. “Spanning a range of automated (customer fulfillment center) sizes, these three new sites will be key parts of this growing and flexible fulfillment network. Alongside the scale and wider benefits of larger CFCs, smaller-format and mini CFCs will allow Kroger to reach more geographies with Ocado’s automation, while also catering to a wide range of options for delivery

Kroger and Ocado Solutions, which specializes in automated warehouses for online grocery order fulfillment, has an agreement to build 20 facilities with Kroger.

“Kroger is incredibly excited to construct three additional industry-leading customer fulfillment centers across the country in relationship with Ocado to bring fresh food to our customers more conveniently than ever before,” Robert Clark, Kroger’s senior vice president of supply chain, manufacturing and sourcing, said in the release. “Through our strategic partnership, we are engineering a model for these regions, leveraging advanced robotics technology and creative solutions to redefine the customer experience.”

Previously announced locations for Kroger automated fulfillment centers are:

  • Monroe, Ohio
  • Groveland, Fla.
  • Fredericksburg, Md.
  • Atlanta
  • Dallas
  • Pleasant Prairie, Wis.

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Mariani Packing Launches Probiotics in Single-Serve Packs

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VACAVILLE, Calif. — Mariani Packing Company, the world’s largest independent family-owned producer of dried fruit, announced they are continuing their rich history of innovation by launching new Probiotic Single-Serve Packs. Based on the success of their best-selling Probiotic Dried Fruit line and consumer demand for on-the-go packaging, the new Probiotic Single-Serve Packs will come in a weekly 7-day supply carton, in two fruit varieties: Probiotic Apricots and Probiotic Prunes, in 1.4 oz each pack.

Mariani’s dried apricots and dried prunes contain soluble fiber, acting as a prebiotic, that may be a fuel source for probiotics to thrive. They are also naturally sweet, with no sugar added, and a good source of antioxidant vitamins A and E, vitamins B6, B12, potassium, and iron.

The GanedenBC30® probiotic active cultures in Mariani’s Probiotic Apricots and Probiotic Prunes are 10x more effective than yogurt cultures in surviving the transit through the harsh stomach environment into the gut. Just 1 serving per day may safely support your digestive health and immune system. GanedenBC30 is recognized as safe (GRAS) by the FDA, as well as vegan, gluten-free, Non-GMO Project Verified, Kosher, and Halal certified.

“Today’s consumers are looking for convenient, healthy and on-the-go solutions that are nutritious and delicious. The new Mariani Probiotic Single-Serve Packs combine the natural prebiotics found in fruit with GanedenBC30  Bacillus Coagulans GBI-30, 6086® probiotics  to help boost immune and digestive wellness anywhere they are; at home, work, school, or travel,” states Bob Hyland, VP, Global CPG Sales & Marketing.

These new Probiotic Single-Serve Packs are the latest in Mariani’s full line of Probiotic dried fruit including Probiotic Cranberries, Raisins, Apricots, Berries & Plums and Prunes, available nationwide at Albertsons/Safeway, Walmart and most major retail grocery stores or online at www.mariani.com

About Mariani Packing Company
Mariani Packing Company, Inc. is the world’s largest independently and family-owned producer of dried fruits. Since 1906, the Mariani family has been providing premium quality dried fruit to consumers and customers all over the world. The Mariani family of products can be found in over 40,000 retail outlets in the United States and in over 65 countries worldwide.

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Preventing Rejection of Refrigerated Loads – Part I

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It’s the middle of summer and 97° here in Virginia and throughout the country. The summer demand for refrigerated fresh products under tight deadlines is at its peak. Allen Lund Company specializes in moving this type of product, successfully transporting thousands of produce loads a year. But, what happens when your load is rejected? This is one of the most frustrating challenges in refrigerated transportation. Rejected loads can lead to insurance claims, contract loss, and a damaged reputation.

How can we prevent avoidable cases of rejected loads and the claims associated with them?

Vet the carriers and drivers moving the loads. Allen Lund Company’s database employs a rigorous vetting process. There is a wealth of resources available when choosing a carrier to represent you.

  1. Verify that the chosen carrier has reefer breakdown AND spoilage coverage on their policy.
  2. Seek product exclusions from the carrier’s insurance company.
  3. Refer to internal notes regarding the carrier’s communication practices, past performance, and on-time percentage. A late perishable load rarely works out well.
  4. Consider known history the carrier has moving refrigerated product.
  5. Ask the potential carrier/driver the right questions. Verify that they are experienced in moving temperature-sensitive products.
  6. Trust but verify. You will come across the good, the bad, and the ugly. Take it all into account when considering whether to do business with a carrier.

In addition to ensuring that you entrust your load with the right carrier, it is also important to prevent hot loads before they get on the truck as well as avoid equipment failure and human error. On Tuesday, August 4 in Keeping it Fresh article, we will continue to discuss the best ways to avoid these problems and guarantee your refrigerated load makes it to the final destination unharmed. 

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Jennifer Brearley began working for the Allen Lund Company in February of 2019 as a transportation broker. She joined the company with five years of domestic and international shipping experience. Brearley attended Western Governors University and received a BA in Interdisciplinary Studies.

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Retail Food Prices are Increasing Due to Inflation

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U.S. retail grocery prices increased 0.8 percent in May and are running nearly 5 percent above a year ago, according to the USDA.

The USDA’s June Food Price report said retail grocery prices were increasing faster than prices for food sold at restaurants.
Prices for food sold at restaurants increased by 0.4 percent from April to May, and stood 2.9 percent higher than May 2019. For food sold at grocery stores, prices jumped 0.8 percent from April to May. Compared with a year ago, retail grocery prices in May were 4.8 percent higher than a year ago.

For all of 2020, the USDA now predicts retail grocery prices will increase 2.5 percent to 3.5 percent. Restaurant food prices are projected to increase in a range from 1.5 percent and 2.5 percent in 2020, according to the agency.

Inflation for fruits and vegetables increased 0.7 percent from April 2020 to May 2020 and is up 1.5 percent compared with a year ago. The USDA said labor costs have risen because of COVID-19.

“With some exceptions, most fresh-market vegetable growers rely on human labor to produce and place a crop into supply channels,” the USDA report said. “It is anticipated that skilled labor will be scarcer and procedural changes to comply with recommended social distancing may reduce productivity.”
Inflation for fresh vegetables rose 0.9 percent from April to May, while fresh fruit increased 0.2 percent.

For the year, retail inflation for fruits and vegetables is projected to increase as much as 1 percent, according to the report.

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AWG to Construct New Distribution Hub in Mississippi

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Associated Wholesale Grocers of Kansas City, KS plans to complete a new distribution hub in Hernando, MS., in 2023.

AWG decided to undertake the project following a review of the company’s growth trajectory and the capabilities and sustainability of its current facilities, according to a news release.

“Our industry is ever-changing, and it is our mission to provide our member-retailers all of the products, services and tools they need to compete favorably in all markets served, all at the best possible cost,” CEO David Smith said in the release. “This new facility has capabilities that checks all of those boxes. We are excited to be able to significantly expand what we stock and ship to our member stores while becoming more efficient and cost-effective in our operations.

“This new facility will be a critical component in our plan to build a safer, better and more efficient supply chain,” Smith said. “In addition to becoming the primary supply source for the region, we will also leverage this new operation as an expanded variety source to all of our facilities and member stores. This will create more value throughout the supply chain for AWG and our members.”

Operations from two distribution centers in the area — in Memphis, TN., and in Southaven, MS. — will eventually be consolidated into the new facility.

The plans are subject to incentives approval, which is being finalized with local and state leaders.

AWG has partnered with Witron, which specializes in creating food warehouse automation and order picking systems, on the project.

“The Witron system is integrated into every area of the new facility; the handling of case and pallet goods, ambient temperature, refrigerated perishables and frozen foods, as well as the handling of individual unit products,” AWG wrote. “This will increase throughput of products, increase efficiencies, improve accuracy and reduce loss due to damaged goods.”

“This in turn will allow AWG and member stores to realize savings across transportation, inventory management, as well as experience enhanced pick accuracy and lower salvage rates,” AWG wrote. “All of this will result in cost savings for AWG members while still maximizing the integrity and safety of the food supply chain.”

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Storage Tech Investments Prolong Red Potato Season by Eagle Eye

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Idaho-grown red potatoes continues to be shipped due to investments in storage technology by Eagle Eye Produce of Idaho Falls, ID.

“Historically, the storage crop Idaho-grown red potatoes during this time of year see pressure bruising and the quality dips below strict guidelines to where suppliers look to pull from other regions,” Jared Neville, commodity director, said in a news release. “This new proprietary storage method has allowed us to better control our quality to where we can continue to sell our local product.”

With a prolonged season, Eagle Eye’s red potatoes are integrated with its other year-round programs. The facility allows for one-stop shopping, with Idaho russets, reds, yellows and value-added products available. 

“We are proud to be able to continue to supply our customers directly with product grown, packed, and shipped by us,” Neville said.

The company offers retail and foodservice pack styles under several brands names, with private label packing available, and a national sales and marketing team to support a global customer base,

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Carrier Transicold of Southern California Opens Facility

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Carrier Transicold of Southern California has opened a 42,000-square-foot service facility.

The Jurupa Valley, Calif., facility has 12 bays and is the largest of Carrier Transicold of Southern California’s (CTSC) three locations. Carrier Transicold equipment and services support the shipping of temperature-controlled cargo and cold-chain visibility, according to a news release.

CTSC, based in City of Industry, Calif., opened a satellite operation in the Inland Empire region four years ago and demand made the larger facility necessary.

“Our new facility provides better access and greater convenience for refrigerated haulers serving the area and especially those entering Southern California from the east,” Bill Willett, president and CEO of CTSC, said in the release. “It’s another example of how we are investing deeply to help support our customers.”

The facility includes a service area with 25 technicians, a training area and a showroom.

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Root 24 Farms is Shipping its First Organic Blueberry Crop

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RRoot 24 Farms of Moxee City, WA, is a new organic blueberry company shipping its first crop from 650 acres of production, with “many more” in transition to organic, according to a news release.

“Our name comes from the fact that we’re deeply rooted in the land and that our two growing regions — Moxee and Othello — are each at opposite ends of Route 24, which traverses the heart of Washington — crossing the Columbia River to link our two farms,” Tim Youmans, executive vice president of sales and marketing, said in the release.

Youmans most recently was vice president of commodities and national accounts, but was at berry company Driscoll’s for more than 18 ½ years before that, most recently as vice president of sales.

Root 24 is a new company and brand, but the berries are from established production; the growers previously supplied other brands.

The company also markets frozen, dried and powdered blueberries, allowing it to be selective when packing for the fresh market. The blueberries are available in six-ounce dry pints and 18-ounce and 2-pound clamshells. The company also has a 6-ounce jumbo pack.

The company’s fresh berry window is from late June through early August.

“Our geography is unique and our season is relatively short,” Youmans said in the release. “We have matched varieties with ideal consumer flavor attributes to the land we grow on and to our organic farming system. We have tried to view varietal selection holistically and always with a focus on a true blueberry flavor experience that drives consumer consumption.

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