Archive For The “News” Category
(Since this article was written the U.S. dockworkers and the U.S. Maritime Alliance have extended their existing contract through January 15. This will provide time to negotiate a new contract.)
Allen Lund Company
The East Coast and Gulf Coast dockworkers’ strike, which began on October 1, 2024, has disrupted port operations across major hubs from New York to Texas. The International Longshoremen’s Association (ILA) initiated the strike after failing to secure a new contract with the U.S. Maritime Alliance (USMX). The strike currently involves 45,000 union members and affects 36 ports. With dockworkers walking off the job, billions of dollars in goods—ranging from consumer items to critical industrial components—remain stranded at ports. The strike could significantly impact supply chains, especially for perishable goods, with estimates suggesting economic losses of up to $5 billion per day as the stoppage continues.
According to NPR, the primary issues of the strike include wage increases and concerns over automation. The union is demanding a $5 hourly wage increase each year for the next six years, which would significantly raise workers’ pay. Additionally, the ILA insists on strict language to prevent the introduction of full or semi-automation at ports, fearing job losses in the long term. Negotiations between the two sides have stalled, with no face-to-face meetings since June.
In response to the strike, we at Allen Lund Company are closely monitoring the situation. Our team is taking proactive steps to mitigate potential disruptions to our customers’ supply chains. We are actively communicating with our network of carriers and exploring alternative routes and logistical solutions to ensure minimal delays. In the meantime, we recommend that our shippers consider rerouting to West Coast ports for more efficient handling. The ongoing strike underscores the importance of adaptability in logistics, and we remain committed to finding timely and effective solutions for our customers during this critical period.
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IFPA Global Produce & Floral Show in Atlanta, GA
October 17-19, 2024
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Dockworkers at ports ranging from Maine to Texas have gone on strike today, causing major concern to the U.S. and international supply chain. This is the first strike from the International Longshoremen’s Association since 1977 and has paralyzed the labors of about 45,000 workers.
According to CNBC, between 43%-49% of all U.S. imports and monthly billions of dollars in trade move through the U.S. East Coast and Gulf ports.
In response to the labor disruptions, the USDA put out a statement saying it is taking action to monitor and address potential consumer impacts.
“Our analysis shows we should not expect significant changes to food prices or availability in the near term,” the statement indicates. “Thanks to the typically smooth movement through the ports of goods, and our strong domestic agricultural production, we do not expect shortages anytime in the near future for most items,” it adds.
Additionally, they assured that non-containerized bulk export shipments, including grains, would be unaffected by this strike. For meat and poultry items that are exported through East and Gulf Coast ports, available storage space and re-direction of products to alternative domestic and international markets can alleviate some of the pressure on farmers and food processors.
“We are keeping an eye on downstream impacts in the west, and we will continue to monitor and work with industry to respond to potential impacts. Our Administration supports collective bargaining as the best way for workers and employers to come to a fair agreement, and we encourage all parties to come to the bargaining table and negotiate in good faith—fairly and quickly,” the USDA says.
Experts have indicated that this strike, if lengthy, could have major costs for the U.S. economy, with millions of dollars lost daily, especially at major ports like New York/New Jersey.
For the moment, dockworkers have taken to the streets, manifesting there will be “no work without a fair contract.”
The affected ports include: Baltimore, Boston, Charleston, Hampton Roads, Houston, Jacksonville, Miami, Mobile, New Orleans, New York, Philadelphia, Savannah, Tampa and Wilmington. The ports in question are currently operated under a contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA).
J.C. Watson Packing Co. of Parma, Co.started its Idaho-Eastern Oregon onion harvest the second week of July and will continue through October.
The marketer will sell its Idaho-Eastern Oregon onions from storage through mid-May 2025.
J.C. Watson Co. received its name from its founder back in 1912, when he established a produce company in southwestern Idaho.
For over 90 years, the company has produced, packed, and marketed Spanish sweet onions.
In 2010, the company created two additional companies: J.C. Watson Packing Co. focuses on the packing, selling, and shipping of onions, while Watson Agriculture Inc. focuses on growing and producing a sound, superior onion for its customers.
In May this year, the company broke ground on its new onion-packing and rail facility in Wilder, Idaho. The $32 million facility will enhance the company’s operational capacity and support local and regional markets with improved transportation and distribution infrastructure.
Construction on the new packing and rail facility began in late May, with expected completion in February 2025. The new 70,000-square-foot facility will allow the company to process over twice the volume of onions handled now, significantly expanding capacity and extending the local season for Idaho and Eastern Oregon onions.
Peru’s agricultural exports reached $10.545 billion at the end of 2023, and they are projected to exceed $11.5 billion by the end of 2024, according to the Ministry of Agrarian Development and Irrigation (Midagri), as reported by Andina.
“Despite the unfavorable context, the excellent work of agricultural producers and exporters, joined by the (Peruvian) State, allowed for reversing this adversity and making possible for agricultural shipments in 2023 to exceed by 2.9 percent those reported a year earlier,” Midagri’s Agricultural Foreign Trade Specialist Cesar Romero told El Peruano Official Gazette.
The official highlighted that, over the last 23 years, Peruvian agricultural exports have grown at an average rate of 11.9 percent per year.
Romero said there are 20 products that account for 74.6 percent of total agricultural exports. Among these are grapes, blueberries, avocados, asparagus, mangos, citrus, coffee, cacao, bananas, artichokes, dried paprika, ginger (kion), and quinoa.
However, according to the figures managed by Midagri, there are three Peruvian ag products whose annual performance exceeds or nears $1billion: grapes, blueberries, and avocados.
Grapes currently lead Peru’s agro-exports ranking, as in 2023, 649,000 tons were exported worth $1.745 billion, 28 percent more than in 2022.
During 2023, Peruvian grapes were exported to 55 markets, most notably to the U.S. (47 percent of the total), the European Union (17 percent), and Asian countries (13 percent), mainly in Hong Kong and China.
Blueberries are the second largest Peruvian agro-export product, since by the end of 2023, shipments abroad totaled $1.676 billion, registering a 23 percent growth compared to the previous year.
Peruvian blueberries reach 44 foreign markets, with the U.S. taking 57 percent of the total, followed by the European Union (22 percent), and then there are other destinations such as China and Hong Kong.
Avocados are ranked third among Peru’s main agro-export products, considering that in 2023 shipments abroad totaled $963 million, 7.6 percent above the previous year, as they reached 599,000 tons in volume.
According to the National Agricultural Health Service (Senasa), Peruvian avocados are allowed to be exported to 73 markets around the world, with the European Union being the largest buyer, accounting for 51.8 percent of the total. In second place is the U.S. (13.9 percent); followed by Mexico, Chile, and Asian countries.
Chicago — Circana, a leading advisor on the complexity of consumer behavior, recently released a new report providing a complete view of food and beverage consumption trends, both at home and away from home.
The 39th annual report, “Eating Patterns in America,” highlights a growing trend toward at-home dining over the past year, with 86% of eating occasions sourced from home.
While retail volumes show modest growth, foodservice traffic remains under pressure. However, significant opportunities remain in both sectors, with American consumers spending nearly $1.7 trillion annually on food and beverages. The report offers strategic insights for manufacturers, retailers, foodservice operators, and distributors aiming to better engage with their target consumers.
“Despite easing inflation, consumers continue to face the cumulative impact of several years of rising prices and ongoing economic challenges,” said David Portalatin, senior vice president and industry advisor, Food and Foodservice, Circana.
“With dining out costing four times more than eating at home, many are cutting back on restaurant visits. Meal patterns have shifted as consumers spend more time at home and adapt to new daily rhythms. However, convenience and health remain top priorities, with consumers willing to spend on products offering added benefits, especially in the beverage space, where innovation is rising to meet these demands.”
The report highlights several key findings, including:
- Home-Centric Dining: In the post-pandemic era, at-home food and beverage consumption remains a cornerstone of daily life. Regardless of where meals were sourced, consumers ate 116 more meals at home over the past year than they did pre-pandemic. As consumers seek the optimal balance between value and convenience, low price is not the sole driver of a compelling value proposition. New mobility patterns, inflationary pressures, and evolving attitudes around well-being offer opportunities to craft retail solutions that help consumers source meals, snacks, and beverages for both in-home and on-the-go occasions. While gains in away-from-home consumption are leveling off, fast casual restaurants are gaining market share. Despite a challenging macroeconomic environment, some foodservice operators have demonstrated resilience and achieved growth. Focusing on efficiency, innovation in menu offerings and delivering value will be key to driving continued growth.
- Daypart Disruption: While breakfast, lunch, and dinner remain the primary meal occasions, their composition, timing, and sources are evolving to fit consumers’ daily routines. Breakfast now starts earlier, with mid-morning snacks away from home rising in popularity. Lunch has shifted significantly due to changes in workplace mobility, with lunchtime traffic falling to about half of pre-pandemic levels. Snack consumption is growing, with consumers increasingly preferring quick bites or meal replacements over larger meals. As snacking becomes more common throughout the day, the boundaries between traditional mealtimes will continue to blur.
- Beverage Innovation: Over the past year, beverage consumption has surged, particularly among coffee, carbonated soft drinks, and functional beverages. This rise in consumption is driven by manufacturers’ innovations aimed at addressing evolving consumer needs. Today’s beverages cater to various functional requirements, including hydration, energy, and nutrition. Coffee remains a daily staple for many, offering both comfort and an energy boost. Carbonated soft drinks continue to be popular for their refreshing qualities, while functional beverages are gaining traction for their added benefits, such as vitamins, electrolytes, and other health-enhancing ingredients. This trend reflects a broader movement toward beverages that serve as both enjoyable and functional components of daily life, adapting to changing lifestyles and preferences.
For more information or to purchase the full report, contact your Circana representative or click here.
About Circana
Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at circana.com.
The Allen Lund Company was recently named one of the Best Places to Work in Southern California by the Best Companies Group.
The selection process for applicants relied significantly on detailed employee surveys. Key factors such as corporate culture, training and development opportunities, salary and benefits, and overall employee satisfaction were crucial in identifying the top workplaces in Southern California.
Senior Director of Human Resources Matt Barnes stated, “We are excited to be recognized once again as one of the best places to work in Southern California. Our culture, growth opportunities, benefits, and especially our people, are all top flight. It is a well-earned acknowledgement that we will be proud to advertise.”
About Allen Lund Company:
Specializing as a national third-party transportation broker with offices across North America and over 700 employees, the Allen Lund Company works with shippers and carriers nationwide to arrange dry, refrigerated (specializing in produce), and flatbed freight. ALC manages over 550,000 loads a year and was designated by Transport Topics in 2024 as the 17th Top Freight Brokerage Firm. The Allen Lund Company has a logistics and software division, ALC Logistics, ranked 48th in the Transport Topics 2024 list of Top 100 Logistics Companies and an International Division licensed by the FMC as an OTI-NVOCC #019872NF. Please click here if you want to join the Allen Lund Company team.
Shipping company A.P. Moller-Maersk is investing heavily in fleet renewal and plans to acquire up to 50-60 vessels capable of operating on dual fuel types, including liquefied natural gas (LNG) and methanol.
LNG is natural gas that has been reduced to liquid state, through process of cooling. Since 2010, the number of vessels fueled by the natural gas has grown between 20% and 40% yearly, according to SEA-LNG.
According to Maerks, the new fleets will be a mix of owned and chartered, in order to ensure that the company maintains a “strong financial and operational flexibility while continuing to own a significant part of its strategic tonnage.”
In line with Maersk’s commitment to decarbonization, all vessels will be dual-fuel with the intent to operate on low emission fuel.
The exact split of propulsion technologies will be determined considering the future regulatory framework and green fuels supply and approximately 300,000 twenty-foot equivalent unit (TEU) will be owned capacity and the remaining 500,000 TEU is planned through time-charter agreements.
Both owned and chartered dual-fuel vessels will equal to 800,000 TEU.
According to Rabab Boulos, Chief Operating Officer at Maersk, the choice to expand can be attributed to shipyard orderbooks filling up quickly and lead time for vessel deliveries increasing significantly.
By Nick Mihalopoulos Controller ALC Finance
It was 1984, and Tina Turner had just released her smash hit, “What’s Love Got to Do With It?” At this time, the U.S. was also exiting a period now known as The Great Inflation. During this period from the mid-60s to the early 80s, inflation peaked at more than 14% in 1980. The Vietnam War, increased government spending on social programs, and energy shortages all contributed to the Great Inflation. Now, fast forward 40 years to 2024, and we are exiting another period of high inflation, which peaked at 9.1% in June 2022 and is now down to 2.9% as of July 2024.
Equity markets are celebrating inflation being back down below 3%, but consumers still haven’t been able to find relief. This is in large part due to the fact that prices of essential items, such as those found in grocery stores, have increased by 20% over the last four years. So, what’s transportation got to do with this 20% increase? According to the Cass Truckload Linehaul Index, truckload transportation rates have increased by 5.9% over the last four years and have decreased by 23% from their peak in May 2022. Since transportation doesn’t queue up Tina Turner’s hit song, we’ll need to look at other costs. For example, the average grocery store hourly wages over the last four years have increased by 26.5% from $16.98/hr to $21.48/hr. This outpaces the 19.4% wage increase of all employees during this time period.
Given this data, the current prices of grocery store items and other goods are here to stay. The positive in this data is that wage growth has kept up with these price increases, but like in any economy, workers in some sectors have seen higher increases than others. Inflation and grocery store prices have become major headlines as we near the November election. Both parties are making their case to the American people as to how their platform will better benefit the economy and stave off future inflationary periods. And if 1984 happens to be on the minds of party leaders, let’s hope they’re listening to Tina Turner and not reading George Orwell.
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Nick Mihalopoulos began his career with the Allen Lund Company in 2011 after previously working at PepsiCo. Mihalopoulos is a graduate of the University of Illinois Urbana-Champaign where he earned a dual degree in Finance and Accountancy.
nick.mihalopoulos@allenlund.com
Peruvian agricultural exportsto the U.S. during the second quarter of 2024, hit $425 million, which was an impressive 17 percent more than the same period last year, according to Agraria.
Among the highest performers of Peruvian products were avocados, with just over 20 percent volume; followed by mandarins, with 12 percent; and asparagus, with 11.8 percent.
Avocado shipments accounted for 44,791 tons at $96 million, which was 11 percent more in volume and 35 percent more value than the second quarter of 2023. The price was higher by 21 percent, getting to $2.15 per kilogram.
As for mandarins, they increased with a total of 38,547 tons for $52 million. Compared to 2023, this was 16 percent more in volume and 31 percent more value. Similarly, the average product price was 13 percent higher, selling at $1.34 kilogram.
Finally, asparagus added 15,975 tons for a value of $51 million, which meant an 8 percent drop in volume and 13 percent in value. The price had a 5 percent drop, at $3.17 per kilogram.
Unicoi, TN – Lipman Family Farms is excited to announce the addition of Jones & Church Farms of Unicoi, Tennessee to the Lipman farming network. This acquisition underscores Lipman’s unwavering commitment to family farming, sustainable practices, and the expansion of fresh produce availability throughout the United States.
Jones & Church Farms aligns with Lipman’s dedication to supporting family-run businesses and increasing production capacity. Established in 1975, Jones & Church Farms is now entering its third generation, continuing its legacy of growing romas and round tomatoes during the July-October growing season. By investing in this critical tomato season and location , Lipman is doubling down on its commitment to supplying stable, year-round produce to its customers.
Family farming is central to Lipman Family Farms’ mission. Integrating Jones & Church Farms allows Lipman to honor the rich history and expertise of their local growing partnership. With family central to its culture, Lipman continues to acquire and support family-owned operations.
Jones & Church has been a close partner of Lipman since 1996 when they started buying and marketing their tomatoes after the opening of Custom Pak, Lipman’s repack operations. This partnership became instrumental in Lipman’s seasonal supply in the East, making them the first local growing partner with key customers during the summer months.
“The Jones & Church team has always provided top-quality product and been honorable and sincere partners, offering the best tomatoes in the country between the months of July-October,” said Elyse Lipman, CEO at Lipman Family Farms. “Now, our companies and families are joining forces. Together as Lipman, we are positioned stronger than ever to provide year-round supply to our customers with an expert team.”
ABOUT LIPMAN FAMILY FARMS
By creating authentic connections between our employees, customers, and communities for 75 years, Lipman Family Farms has become one of the nation’s largest integrated networks of growers, fresh-cut processors, and distributors of fresh produce. We pride ourselves in being an international company that remains family-owned, ensuring our ability to act as good stewards of our land and our people, creating growth that nourishes everyone. We are large enough to be local everywhere and are dedicated to being good from the ground up, providing solutions in research & development, field growing, greenhouse growing, procuring, packing, repacking, fresh-cut processing, distributing, food safety, and culinary development. Learn more at LipmanFamilyFarms.com.