Archive For The “News” Category
By Kenneth Cavallaro ALC Boston
Some of my earliest memories involve fresh produce – watching cardboard crates of plump tomatoes and glistening peppers being unloaded at the docks of my family’s wholesale produce warehouse, sampling sweet berries, and vigilantly checking for damaged products beside my grandfather, father, and uncle. As the third generation of a produce family, fresh produce was a major part of my childhood.
At the time, I simply enjoyed the deliciousness of fresh fruits and vegetables and thought little of where they were grown or how they reached my kitchen table. As an adult, I now find myself fascinated by the process. How long does it take to pick a crop and get it from the farm to a customer’s table? What practices utilized during transport best preserve product quality? A great majority of our country’s produce comes from California and Mexico, with their ideal growing climates and lengthy growing seasons. In 2022 alone, 590,906 truckloads of imported produce were shipped from Mexico to the U.S. in 40,000-pound loads. How can so much perishable freight remain fresh when traveling across the country?
Danny Mandel, founder and former CEO of SunFed in Nogales, Arizona, has over 30 years of experience in the produce industry and was able to answer these questions. Mandel reports that it takes one day to pick, pack, and load a fresh crop and another two to five days to reach its final destination. What keeps fragile produce so fresh after this transport time? It requires growers to harvest produce at the optimal time and package it in sturdy containers that allow air to circulate while preventing bruising. Refrigerated van drivers and transport companies further extend product longevity with stringent adherence to temperature requirements – which vary by fruit and vegetable variety. Following temperature requirements on bill of lading instructions and carefully monitoring temperature gauges extend freshness and prevent the formation of mold. Furthermore, practices such as loading and unloading quickly help keep any adverse outside weather conditions or drastically different temperatures from damaging the product.
According to the USDA, Postmaster General Albert Burleson launched the Farm to Table program in 1914. The program consisted of picking up produce and other farm fresh items and delivering the goods as quickly as possible to retailers, ultimately reaching America’s kitchen tables with healthy products still as fresh as possible. Previously, unconsumed produce was destined for the compost heap. Now, growers could sell farm goods for financial gain to more consumers. The advent of temperature-controlled freight further made it possible to deliver products in a timely manner.
With the high demand for fresh produce, consumers can expect the industry to continue to advance in delivering produce as quickly as possible. Greenhouses could allow produce to be grown in colder states to lessen the stress of relying on warmer areas to support our heavy produce consumption and further decrease the transport time from farm to table. There will always be a need to transport the product, but more growing areas across the country would mean increased product freshness by reducing transport time.
Getting produce from the farm to your table as quickly as possible makes for a healthy and enjoyable meal. After 110 years, Postmaster Burleson’s Farm to Table idea continues to make great strides and improve consumer culinary options. The next time you stop by your local grocery store for salad fixings, keep in mind the growers who cultivated a beautiful crop, the dedicated drivers who quickly and safely transported thousands of pounds of product, and even the transportation broker who monitored the delivery of your load.
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Kenneth Cavallaro, Jr. is a carrier manager in the Boston office. He began his career at the Allen Lund Company in February of 2019. Kenneth has been in the transportation industry since May of 1999. He holds a Bachelor of Arts in Communications from Salem State University.
kenneth.cavallaro@allenlund.com
Michigan growers are national leaders for several specialty crops. The state ships fruits and vegetables every month of the year, with the peak volume in August and September.
Here are some highlights of the scope of fruit and vegetable production, according to the Michigan Department of Agriculture.
Apples: In 2022, 1.36 billion pounds of apples were harvested in Michigan, ranking second in the nation. About 50% of the harvest was used for processing, yielding a farm value of $108 million. Fresh market apples account for a farm value of $34 million at 707 million pounds. There are more than 14.95 million apple trees in commercial production, covering 34,500 acres on 775 family-run farms. Orchards are trending to super high-density planting (approximately 1,000 or more trees per acre), which come into production and bring desirable varieties to market quickly.
Asparagus: Michigan ranks first in the nation for asparagus production, producing up to 26 million pounds annually. Michigan growers harvest approximately 9,500 acres annually.
Blueberries: In an average year, Michigan blueberry farmers produce more than 70 million pounds of more than 30 varieties of highbush blueberries. More than 50% of all Michigan blueberries are shipped to the fresh market. Michigan’s blueberry crop is harvested from more than 14,000 acres. Michigan blueberries are grown, harvested, packed and processed by 500 family farms annually, contributing more than $130 million to the state’s economy.
Cucumbers: Michigan ranks first nationally in the production of cucumbers for pickling. In 2022, Michigan produced 216,726 tons of pickling cucumbers with a value of $45.5 million. In addition, the state produced 53.6 million pounds of cucumbers for the fresh market worth $17.7 million.
Grapes: Michigan uses more than 93,000 tons of grapes for the production of wine and juice. Michigan has 10,900 acres of vines on 390 farms, making Michigan the eighth-largest overall grape-producing state in the nation.
Onions: A majority of Michigan onion production occurs in south central and southern Michigan in the counties of Allegan, Barry, Eaton, Ionia, Kent, Newaygo, Ottawa and Van Buren. Michigan onion production in 2022 was 85 million pounds, with a total value of $18.7 million.
Peaches: Most Michigan peaches are grown in the west central to southwest corner, close to Lake Michigan, with additional production in the east along Lake St. Clair and in the northwest Grand Rapids area. In 2022, Michigan produced more than 23 million pounds of peaches valued at more than $20.1 million. Michigan’s Red Haven peaches are famous throughout the country, with recent new Michigan varieties including the southwest Michigan Flamin’ Fury and Stellar peach series gaining popularity.
Potatoes: Michigan is ranked ninth in production of potatoes, generating $2.45 billion in economic impact in 2022 and nearly 1.65 billion pounds of potatoes harvested from as far south as Monroe County to as far north as Iron County in the Upper Peninsula. Michigan is the nation’s leading producer of potatoes for potato chip processing. Montcalm County has more harvested acres than any other county in Michigan.
Pumpkins: In 2022, Michigan generated $16.4 million from the production of 93.1 million pounds of pumpkins. In 2022, Michigan produced 164 million pounds of squash for fresh or processed use, totaling $39.5 million. Michigan leads the nation in the production of squash.
Snap beans: Michigan snap beans are grown in green, purple, and yellow varieties throughout the July through September season. Michigan produces fresh and processed snap beans. In 2022, 16,800 acres were planted with 16,500 harvested, amounting to a total value of $31 million, while 21.4 million pounds of fresh beans totaling $15.6 million were sold.
Sweet corn: Michigan sweet corn is enjoyed throughout the state in several varieties. On average, Michigan produces 86 million pounds of sweet corn for the fresh market worth $21.8 million.
Tomatoes: Michigan grows tomatoes for both fresh and processed uses. On average, Michigan produces 120,100 tons of tomatoes for processing and 74 million pounds of tomatoes for fresh market, with a total value is $48.4 millio
Citing extremely low fruit volumes, bad weather, and difficult markets, B.C. Tree Fruits cooperative of Kelowna, British Columbia has reportedly dissolved and closed its doors on July 26.
Formed in the 1930s, the organization sent a letter to its members recommending they “immediately search for another alternative to market your fruit for the balance of the 2024 season.”
The letter, obtained by Global News Canada, went on to say the board of directors could not “effectively operate the business and provide pool returns to growers,” and that it is “taking steps to obtain court direction and assistance to properly wind down the Cooperative to maximize recovery for all stakeholders.”
The cooperative includes more than 230 members, who now must find alternative buyers with the Okanagan apple harvest looming. The CBC reported B.C. Tree Fruits has faced financial challenges and grower unrest for the past few years, voting to close a packing house in 2022.
Growers held a vote, unsuccessfully, to dissolve the board of directors, and have now asked for government intervention to support the British Columbia tree fruit industry.
Rabobank has issued a new RaboResearch report which points out despite water availability challenges in some producing countries, avocado production and trade will continue to grow.
The report relates Latin America is the top exporter, while the U.S. continues to be the primary importer.
Competition and margin pressures, especially in South America, are likely to move the market toward consolidation, the report said.
Global avocado exports are expected to surpass 3 million metric tons by 2025, the report said, with Latin America at the forefront.
Mexico, Peru and Colombia will be the largest avocado exporters, according to Rabobank projections, while Brazil, Ecuador and other countries are emerging as global suppliers.
Demand growth in the European avocado market has spurred increased production in the European Union, mainly in Spain, the report said. However, water availability will limit large-scale expansion of avocado production, and further area expansion is not expected for European production, according to the report.
Africa is witnessing steady growth, notably in Kenya and Morocco.
U.S. demand for avocados continues to climb, with 2023 imports at a record 1.26 million metric tons, up 11% from 2022.
Mexico commands a 90% share of U.S. avocado imports.
Europe’s demand for avocados is predicted to grow, though its reliance on imports will expand in the years ahead, the report said. Demand also is rising in other regions.
“Opportunities abound in Asia and Latin America, with untapped markets poised for growth. South American countries, in particular, are ripe for increased consumption, pending promotional and marketing initiatives,” David Magaña, senior Rabobank analyst for fresh produce, said in the report.
Asia’s imports have surged by 29% in 2023, led by China.
While the hass variety now dominates global trade, Magaña said other avocado varieties will likely grow.
“While hass avocados will continue to dominate, hass-like varieties will gradually gain ground, particularly those with higher yield potential,” Magaña said in the report. “The industry faces price pressures as global production volumes rise, with quality and size being pivotal in the American and European markets.”
By Kat Ball and Jim Brister ALC Vancouver, BC
Well, it’s alright, we’re going to the end of the line. As The Travelling Wilburys appreciate, trains are an important and instrumental part of our nation’s history. America’s first intercity railroad, the 13-mile Baltimore and Ohio Railroad was completed in early 1830. Canada’s first railway line opened in 1836 with the Champlain and St. Lawrence Railroad, which connected two sides of the river outside Montreal. Nearly 200 years later, there are seven major railroads operating in the United States and two in Canada. These networks join North America with unlimited access to every major port, city, state, and province. And while the end of the lines exists within this network, there is no end in sight for the utilization of this mode in logistics. Intermodal shipping continues to be a popular choice for many shippers to move their goods to market across North America.
There are many features and benefits of intermodal (rail plus truck) shipping that make it an attractive option for logistics:
- Nationwide rail infrastructure— Shippers can speed their goods to market with door-to-door service, which includes impressive weekly rail schedules to multiple destinations.
- Non-stop rail service— Public rail stops multiple times to add or remove containers, which often subjects fragile and perishable items to prolonged weather extremes, shifting, and damage. For the rail portion of dedicated commercial intermodal, the networks operate non-stop, coast to coast, which means more product moving and fewer delays.
- Increase overall capacity— Intermodal allows for additional capacity compared to truckload shipping. It provides access to a large pool of refrigerated and dry van containers with different specifications available (53′, 48′, 40′ containers, high cubes). In addition, intermodal also has a large network of drayage options from all major terminals in Canada and the U.S.
- Product protection— 24/7 monitoring via GPS, remote temperature adjustments, and standardized container sealing for unparalleled security, a top concern for many stakeholders facing increased theft, fraud, and scam incidents in the trucking market.
- Cost savings— Intermodal is more cost-effective than over-the-road trucking and allows for savings on freight costs compared to using trucks alone. By providing competitive and consistent pricing, budget fluctuations can be minimized.
- Time savings— One point of contact door-to-door; using a broker who manages intermodal and will handle all customs clearance, rail billing, and third-party communications on behalf of the shipper.
- Environmental, social, and governance focus—Intermodal shipping has less impact on the environment than over-the-road trucking. Its carbon footprint is a fraction of that of long-haul trucks, and it has a different set of regulatory mandates than trucks. Stringent and regulated security measures safeguard goods throughout the supply chain.
Looking down the line to Q4, most reports predict intermodal volume to grow into Q4. Key indicators to watch are domestic container volume, which is largely influenced by shippers’ inventories, consumer spending, and retail sales. Retail sales are growing, albeit slowly. This, coupled with lower retail inventories, bodes well for volume growth in intermodal. In addition, many experts are looking at the truck market’s indication of a freight rate increase. Trucking freight indexes fell 1.8% month-over-month mid-year, looking like rates have hit the bottom. As rates move up, rail will become a more favorable option for the end of 2024. So, All Aboard, it looks like it will be an exciting end to 2024!
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Kat Ball is the general manager of the ALC Vancouver, BC office. She received her undergraduate degree in English from Simon Fraser University, followed by a post-graduate diploma in Marketing and Sales Management from the University of British Columbia. Kat began working for ALC Vancouver, BC (formerly United World Transportation) in 2006, gaining experience in various roles. In April 2023, the Allen Lund Company acquired United World Transportation and Kat aided in the transition as assistant general manager. The following April, she was promoted to general manager.
kat.ball@allenlund.com
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Jim Brister is the business development manager of the ALC Vancouver, BC office. As a Commerce Business graduate out of the University of British Columbia, he has worked across the building materials and construction industries living in both Canada and the U.S. before starting United World Transportation in 2003. Now as part of the Allen Lund Company Jim continues to enjoy the challenges and pace of the transportation world.
jim.brister@allenlund.com
Prosper Africa, a presidential initiative to strengthen strategic and economic partnerships between the United States and Africa, announced the U.S.-Africa Trade Desk’s (USATD) first trade agreement, valued at $56 million for 700 containers of South African table grapes.
The USATD, a joint venture between Prosper Africa and Afritex Ventures, aims to bridge the gap between African agricultural suppliers and U.S. buyers.
This transaction is expected to help U.S. retailers keep produce prices stable for consumers during the off-season, when commodity prices typically rise by 35%.
Financed with a trade facility structured by EAS Advisors and Scipion Capital, the deal increases value for African producers by providing firm purchase prices and reducing market volatility.
Shipments will begin the first week of November 2024 and continue through April 2025, filling gaps in the U.S. season.
USATD will facilitate the entire transaction, providing an end-to-end solution bridging the gap between retailers’ U.S. and African production needs.
“I am excited not only to celebrate the first USATD agreement but also that South African grape growers will have the ability to export directly to U.S. retailers on a large scale,” said Prosper Africa coordinator, British A. Robinson.
“Prosper Africa is proud to work with African companies to help them take advantage of the African Growth and Opportunity Act (AGOA) and facilitate their partnerships with U.S. buyers who want to diversify their suppliers and find high-quality products for their consumers.”
Over the last two decades, blueberries have experience amazing growth, but “blues” were still identified in a poll of industry professionals as the berry with the biggest potential to grow consumption in the next five years.
The 268 voting in a poll in the LinkedIn Fresh Produce Industry Discussion Group were asked, “What berry category has the most room to grow in the next five years?”
The results of the poll were:
- Blueberries — 41%.
- Blackberries — 27%.
- Strawberries — 16%.
- Raspberries — 15%.
USDA per capita retail numbers shows strong gains for each fresh berry category.
The USDA does not report blackberry per capita consumption.
Raspberry retail per capita consumption in 2021 totaled 0.8 pounds, up 166% from 0.3 pounds in 2011 and up 700% from 0.1 pounds in 2001.
Strawberry retail per capita consumption in 2021 totaled 6.7 pounds, up 45% from 4.6 pounds in 2011 and up 131% from 2.9 pounds in 2001.
Blueberry retail per capita consumption was 2.3 pounds in 2021, up 92% from 1.2 pounds in 2011 and up 667% from 0.3 pounds in 2011.
Trade numbers show explosive growth of all berries.
U.S. import value of all berries excluding strawberries totaled $4.3 billion in 2023, up 339% from 2013 and up 1,940% from 2003.
U.S. import value of fresh and fro
During the past four years inflation has battered consumers, and a Rabobank analysis says U.S. consumers have finally hit the wall.
In a report on the cost of a Fourth of July barbecue, Rabobank analysts said consumers are trading down and eating out less often in response to long-running inflation.
“The consumer is waving the white flag on food inflation,” Tom Bailey, senior consumer foods analyst at Rabobank, said in a news release. “With an added 2% in price hikes in 2024 coupled with the cost disparity between dining out and cooking at home at its widest margin in history, we’re seeing heightened fatigue and frugality.”
The 2024 Rabobank BBQ Index, which measures the cost of staple ingredients for a 10-person barbecue, shows that it will cost $99 to host a cookout on the Fourth of July this year, up from $97 last year and $73 in 2018. Cookout ingredients are 32% higher food costs in 2024 compared with 2019, according to Rabobank.
The index showed that the average U.S. consumer has to work an hour to earn enough money for a six-pack of beer and a burger in 2024, up from 51 minutes in 2019, and they’ll have to work nine hours to pay for a barbecue this year, up 32% since 2019.
Produce prices for the BBQ Index are mostly tame compared with a year ago, Rabobank economists said. California’s drought in 2023 sent lettuce prices to more than $100 a carton, well above the average range of $15 to $20 per carton. Rabobank analysts said lettuce prices have come down significantly in 2024.
“We expect leafy greens to have steady supplies, good quality and decent prices,” Rabobank economists said in the release.
Potatoes, also hit hard by drought last year, have rebounded with greater supply based on expanded acreage harvested in the fall of 2023. Potato prices are about half of year-ago levels, the index showed.
On the other side of the ledger, Rabobank analysts said tomato prices have moved higher in 2024 as dry weather in Mexico has curtailed production and overall availability.
Rabobank analysts said a reported 68% of people polled by Vericast say they are switching from restaurants — where the tab is up 4.4% annually — to grocery stores, which have seen only a 1.1% price.
Consumers are pulling back all purchases because of tight budgets, Rabobank officials said. Retail sales were weaker than expected in May as higher borrowing rates and inflation discouraged purchase decisions, Rabobank economists said.
“Retail sales will likely remain soft throughout 2024,” Bailey said.
Wages have not kept up with inflation. Credit card debt, on average, sits at $10,479 per household in the U.S., up from $8,763 in 2021. Forty-one percent of Americans polled by WalletHub say they have more credit card debt now than they did 12 months ago, the release said.
Government aid, such as Supplemental Nutrition Assistance Program emergency payments, the child tax credit, increased unemployment benefits and a suspension of student loan payments have ended, the release said. People under the age of 35 have been hit the hardest; credit card delinquencies in this demographic are at their highest level since 2011, according to the Federal Reserve.
“Fiscal fitness is now more of a focus,” Bailey said. “Saddled with mounting credit card debt, waning savings, and lower real income, consumers are spending less.”
By Jake Diana ALC San Francisco
The vast majority of individuals, both here in the U.S. and worldwide, have come to expect the seemingly guaranteed step-by-step updates that large distributors provide with each and every order submitted. So much so that it often feels like the end of the world when we don’t have that fresh “out for delivery” update on the day of projected receipt. In a world where everyone prefers to be as up-to-date as possible, it makes perfect sense that logistics and trucking companies would be required to provide tracking, right?
One of the biggest hot button topics in freight today is the exponential growth of thefts and scams. Given the integration and volume of texting and email into all walks of life, the evolution of 3PL carrier relationships is in a natural progression. While a general understanding of so-called “instant” communication would lead one to believe this makes the jobs of 3PL employees easier, the reality is that we are often faced with the scary question of “Where is my truck, and who is actually operating it?”
These days, tracking is no longer the eye-catching benefit it once was. Instead, it is now the standard, a bare minimum expectation when it comes to the growth of a 3PL customer relationship. The ability to go above and beyond tracking mandates is just as important as competitive rates or long-standing relationships. Prior to the last two to three years, carriers viewed tracking as bothersome, a form of micromanagement that signaled distrust. In just a short time, carriers are now not only familiar with tracking, but expect it. In a field full of uncertainties, what was once a selling point has rapidly developed into a pillar of the industry.
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Jake Diana graduated from the University of Oregon in 2020 with a Bachelor of Arts degree in General Social Sciences. He joined the ALC San Francisco office in August 2022 as a broker’s assistant before being promoted to carrier sales representative and, most recently, carrier sales manager. Jake is a high-energy individual with a passion for competition, teamwork, and tech.
jake.diana@allenlund.com
Flock Freight and Drive Research has released a study revealing 43% of truckloads in 2023 moved partially empty, with an average of 29 linear feet of unused deck space.
The inefficiency equates to 1 in 4 truckloads moving empty, representing a significant economic and environmental concern.
Called “Wasted Space, Wasted Dollars: The Economic Impact of Inefficient Freight,” the study examines the costs associated with underutilized truckload space and the inefficiencies of less-than-truckload shipping, according to a news release. It surveyed 1,000 transportation decision-makers in the U.S. from various industries, providing a view of the challenges and strategies employed to drive efficiency.
“Historically, the U.S. truckload market has been locked into a binary concept of ‘full’ or ‘empty’ when it comes to trailer capacity,” Chris Pickett, chief operating officer at Flock Freight, said in the release. “We are challenging both shippers and carriers alike to rethink this. With 43% of truckloads moving only partially full, there’s a massive opportunity for businesses to maximize trailer utilization and reduce overall transportation spend with our Shared Truckload solution.”
The research highlights the hidden costs of less-than-truckload shipping, with the average enterprise shipper incurring up to $6.3 million annually in damage and loss claims, the release said. Additionally, unexpected accessorial fees and the time spent by employees managing these issues add to the financial burden on businesses.
Exiting a deflationary phase of the truckload freight cycle in 2024, the industry braces for heightened economic impacts, the release said. As a result, 90.8% of shippers have raised their budgets by 1% to 10% to navigate the expected market shifts.
The study also found growing concerns around fraud and theft within the freight industry. In 2023, 89% of shippers were affected by these issues, with 1 in every 43 shipments impacted, the release said, which leads to direct financial losses and causes a ripple effect of reduced earnings, unexpected fines and a decline in customer satisfaction.
The whitepaper sheds light on the problems and presents innovative solutions, and it serves as a resource for shippers seeking to uncover new opportunities to reduce costs within their transportation programs, the release said.