Archive For The “News” Category
As more trucks become available for hauling, truck rates have experienced a small decline, according to DAT Solutions in a report.
National average spot rates for dry van, reefers, and flatbeds continue to decline, the company reported earlier this month.
Included in the report:
In a typical seasonal slump, the number of trucks on the spot truckload freight market increased 7.4 percent while the number of loads dipped 10 percent during the week ending January 19, said DAT Solutions, which operates the DAT network of load boards.
National average spot rates declined for the second straight week:
– Van: $2.01/mile, down 4 cents
– Flatbed: $2.38/mile, down 4 cents
– Reefer: $2.37/mile, down 5 cents
Reefer trends
Truck posts increased 5 percent while load posts fell 15 percent, which caused the load-to-truck ratio to drop from 6.1 to 4.9 loads per truck. It’s been more than six months since the load-to-truck ratio has been below 5 loads per truck.
Average spot rates were down on several key regional reefer lanes and major markets across the country.
– Los Angeles: $2.92/mile, down 11 cents after an 18-cent decline the previous week
– Atlanta: $2.56/mile, down 5 cents
– Lakeland, Fla.: $1.46/mile, down 9 cents
– McAllen, Texas: $2.24/mile, down 7 cents
– Philadelphia: $2.90/mile, down 5 cents
– Chicago: $2.80/mile, down 14 cents after falling 13 cents the previous week
Below are some examples of truck rates from Oxnard, CA over the past year, which charts the decline in truck.
Banana imports to the U.S. and European Union increased year-on-year in the first few months of 2018, with many important Latin American suppliers shipping greater volumes.
U.S. imports through September rose by 9 pecent from the previous year to 3.2 million metric tons (MT), while to the EU through August rose by 4 percent to 4 million MT, according to USDA and Eurostat data.
The U.S.’s main supplier of the period, Guatemala, increased its shipments to the North American country by 6 percent to 1.4 million MT, while the second-biggest supplier, Costa Rica, saw a 4 percent hike to 649,000MT.
There were significant increases from some smaller suppliers such as Mexico (+22 percent, 241,000MT) and Ecuador (39 percent, 353,000MT). Honduras, the number-three supplier, shipped 4 percent fewer with 360,000MT.
As for Europe, the region’s main supplier, Ecuador, boosted shipments by 12 percent to 1.7 million MT, while Costa Rica, the number-three supplier, increased shipments by 8 percent to 837,000MT.
Meanwhile, there were decreases for Colombia (-2 percent, 902,000MT), the Dominican Republic (-4 percent, 198,000MT), and the Ivory Coast (-1 percent, 197,000MT).
Henry Avocado has moved its headquarters, packing and distribution center in Escondido, CA, to a new building in a nearby industrial center.
The 50,000-square-foot two-story facility in Escondido is 20 percent larger than the previous site and features the latest processing, refrigeration and forced-air ripening elements in the industry.
The new Henry operation consolidates under one roof the administrative and processing machinery and personnel of several buildings at the old location, and provides space for 20 forced-air ripening rooms and five loading docks.
The company, which is a year-round grower-shipper, made the move to maximize efficiency of operation and now has the potential to custom-ripen over 2 million cartons annually. The fresh product is shipped to customers via two adjacent major highways. The I-15 services the north-south corridor while the I-78 services the east-west customer network.
Henry also opened a large distribution center in Charlotte, NC, in 2017, in order to deliver fresh shipments that meet custom-ripening orders as precisely as possible.
“We consider the supply chain as paramount to quality, which motivates our decisions to modernize and relocate as required,” Henry added. “Our seven centers are strategically located, designed and managed to ensure quality, food safety and fresh delivery to customers wherever they are.”
Headed by the new Escondido building, all seven of Henry’s Primus Labs-certified distribution centers meet or exceed the federal, state and industry Good Manufacturing Practices guidelines. Two are located in Escondido and there is one each in Phoenix; Milpitas, CA; San Antonio and Houston, TX; and Charlotte, NC. Together they total 100 ripening rooms with delivery by a modern fleet of refrigerated trucks.
A pioneer in the industry, Henry was founded in 1925 and was among the first to commit to growing and promoting the Hass variety of avocados. Subsequently, Henry developed the first forced-air ripening rooms in 1983. By adding import contacts and capabilities in Mexico, Chile and Peru, Henry Avocado became one of the early year-round suppliers of fresh avocados in 1990.
United States Cold Storage recently opened its third facility in Laredo, Texas.
The 232,366 square-foot-warehouse was built in eight months by engineering firm Stellar, and completed with a tight schedule driven by the timing of the Mexican strawberry season, according to a news release from Stellar, Jacksonville, Fla.
The $35 million facility distributes a variety of produce, including Mexican avocados.
U.S. Cold Storage, Camden, N.J., has operated in Laredo for more than 50 years, George Cruz, senior vice president of U.S. Cold Storage’s Southern Region, said in the press release.
“As food trade with Mexico continues to grow, we found ourselves in a position to respond to our customers’ growing needs with more space,” Cruz said in the release.
Cruz credited Stellar with building the facility in time for Mexican harvests.
The cold storage facility’s features include:
- Refrigerated loading dock with 21 truck doors;
- Separate cross-dock area with four truck doors for inspections/transloads;
- Refrigerated repacking room;
- 27,000 pallet positions; and
- Secure trailer yard for ease of importing and border crossings.
U.S. Cold Storage, a subsidiary of John Swire & Sons Ltd. in the United Kingdom, has 40 facilities in 13 states.
La Cañada Flintridge Calif. – Concluding its 15th year in participation, Allen Lund Company announces record produce donations for the 2018 Navidad en el Barrio event. Navidad en el Barrio, which was established in 1972 by Danny Villanueva, former NFL kicker, continues their mission to provide a healthy Christmas dinner to the most underserved families in Southern California.
“2018 was a remarkable year for Navidad en el Barrio,” states Nora Trueblood, MarCom Director for ALC, “we had growers from Texas, Idaho, Washington, and California participate this year, which translated to four full truckloads of fresh produce. We were able to provide an abundance of fresh fruits and vegetables to every family, which does not happen every year.”
“What made this year especially wonderful was the new growers, many of whom we met at PMA Fresh Summit, that were first-time donors to this program,” continued Trueblood. “From potatoes, and carrots to citrus, apples, pumpkins, mixed greens, and avocados, every family had fresh items in their dinner baskets.” The fresh items are added to a basket which includes staples featuring rice, tortillas, water, pasta, tomato sauce, beans, and fresh chicken.
ALC provided the coordination of donated product as well as the logistical support of moving produce from Texas, Idaho, Washington, and in-state California to the warehouse for distribution on December 15, 2018. ALC contract carriers, Wanship and Chevez Express stepped in and donated their time and equipment to assist in this year’s Navidad en el Barrio event.
2018 donors included: Rainer Fruit, Bonipak Produce, Wada Farms, Grimmway, Cacique, Inc., Coca-Cola Refreshments, Faribault Foods, Mother’s Nutritional Center, Northgate Supermarkets, Wonderful Citrus, Mission Produce, Garofalo Pasta/Advantage Solutions, El Dorado Growers, Naturipe, J & D Produce, Gem-Pack Berries, Sage Fruit Company, Novamex, and American Fresh Produce.
About Allen Lund Company:
Specializing as a national third-party transportation broker with nationwide offices and over 500 employees, the Allen Lund Company works with shippers and carriers across the nation to arrange dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has a logistics and software division, ALC Logistics, and an International Division licensed by the FMC as an OTI-NVOCC #019872NF. If you are interested in joining the Allen Lund Company team, please click here.
Established in 1976, the Allen Lund Company was recognized by Logistics Tech Outlook for our software division ALC Logistics as a 2018 Top 10 Freight Management Solution Providers, 2018 Food Logistics’ Top 3PL & Cold Storage Providers list, 2017 Supply & Demand Chain Executive Top 100, 2017 Food Logistics 100+ Top Software and Tech Provider, a 2016 Top IT Provider by Inbound Logistics, 2015 Coca-Cola Challenger Carrier of the Year, 2015 Top Private Company in Los Angeles by the Los Angeles Business Journal, 2015 Top 100+ Software and Technology Providers, 2015 Top 100 Logistics IT Provider by Inbound Logistics, a 2014 Great Supply Chain Partner, and was placed in Transport Topics’ “2014 Top 25 Freight Brokerage Firms.” The company manages over 365,000 loads annually, and received the 2013 “Best in Cargo Security Award.” In 2011, the company received the TIA 3PL Samaritan Award, and NASTC (National Association of Small Trucking Companies) named Allen Lund Company the 2010 Best Broker of the Year. More information is available at www.allenlund.com.
U.S. citrus shipments crashed big time in the 2017-18 season.
American citrus loads plunged to 6.13 million tons last season, down 20 percent compared with 2016-17 season, and a whopping 66 percent less than the record high production of 17.8 million tons in 1997-98, according to the USDA.
Total fresh U.S. citrus shipments in 2017-18 were 3.308 million tons, off 7 percent from 2016-17 and 13 percent below 2015-16.
California represented 87 percent of all U.S. fresh citrus shipments in 2017-18, compared with 7 percent from Florida, 5 percent from Texas and 1 percent from Arizona.
Florida accounted for 36 percent of total U.S. citrus loadings, compared with 59 percent for California. Texas and Arizona shipped the remaining 5 percent.
Florida Citrus Shipments
Thanks to citrus greening disease and Hurricane Irma in 2017, Florida’s citrus volume continued to plunge in the 2017-18 season.
Florida’s orange shipments stood at 45 million boxes last season, which was down 35 percent from the previous season. Grapefruit volume in Florida, at 3.88 million boxes in 2017-18, crashed by 50 percent from the previous season. Florida’s total citrus shipments decreased 37 percent from the previous season, the USDA said.
Fresh shipments of Florida citrus were rated at 221,000 tons, down 30 percent from 317,000 tons in 2016-17 and off 50 percent from 2015-16.
Bearing citrus acreage in Florida, at 400,900 acres in 2017-18, was 9,800 acres below the 2016-17 season.
In California, the USDA reported citrus loadings dropped 7 percent from the 2016-17 season. California’s total orange shipments, at 45.4 million boxes, was 6 percent lower than the previous season. The state’s grapefruit volume was down 9 percent from the 2016-17; tangerine and mandarin loadings were off 19 percent.
California’s fresh citrus shipments was 2.88 million tons in 2017-18, down 5 percent from 2016-17 and down 9 percent from 2015-16.
In Texas, loadings of citrus was up 9 percent from the 2016-17 season. Orange volume is up 37 percent from the previous season, but grapefruit volume was unchanged.
Texas citrus shipments was 175,000 tons in 2017-18, up 8 percent from 2016-17 and 11 percent higher than 2015-16.
Arizona lemon loadings in 2017-18 was down 35 percent from last season. Arizona fresh citrus shipments was 32,000 tons in 2017-18, down 29 percent 2016-17 and down 32 percent from 2015-16.
Electronic logging device regulations have resulted in truckers being more selective with which shippers and receivers they work.
For example, Zipline Logistics of Columbus, OH has surveyed over 150 trucking companies asking how their business has changed following the ELD mandate. A significant 54 percent report they no longer spend as much time waiting to load or unload their truck, while 80 percent note there are shippers or receivers they refuse to go to because wait times are too long.
The Zipline report stated one respondent commented, “Locations that are known to have little to no regard for a driver’s (hours of service) are no longer serviceable.”
Another company reported it monitors load and unload times so it can avoid going to places with unreasonably long loading and unloading delays.
“Anyone that can’t unload or load on time, why go to them and waste hours?” one respondent wrote. “Time is money now.”
Over 90 percent of the companies with which Zipline works service grocery and retail facilities, and some of them named major retailers and wholesalers among the worst offenders.
“A select population of drivers are now unwilling to go into locations such as Kroger, C&S Wholesale and (United Natural Foods) because of debilitating wait times,” Zipline wrote in its report. “If this issue is to be solved, shippers and retailers will need to improve their speed of operations and better cater to the needs of truckers.”
Walmart, Supervalu, Dollar General, Aldi, Wakefern Corp., Safeway and Meijer were also mentioned in comments by survey respondents.
The Zipline report stated trucking companies were divided 60-40 on whether the ELD mandate improved safety.
Some reported that it forced drivers to stop, rest and follow hours-of-service requirements, but other companies reported drivers were speeding more, driving in inclement weather, and driving while tired to maximize their hours.
Companies pointed to the driver shortage, rather than the mandate itself, as the main cause of rising rates. However, there were a few comments about drivers leaving the industry so as not to have to deal with the new regulations. Still, most companies pegged the mandate as a contributor to higher rates rather than the main cause of them.
Records for both truck rates and shipping volumes were broken in the second quarter of 2018, according to a new report from the USDA.
The Agricultural Refrigerated Truck Quarterly, reviewed truck rates from April through June this year and provided an outlook for refrigerated trucks through the end of 2018.
“Indicators point to sustained high rates and tight capacity for the trucking industry, including the refrigerated truck market, through the end of 2018 and possibly beyond,” the report said.
In addition, the report said Hurricane Florence may have effects on the truck market in the months ahead, adding pressure to an already tight market.
“With demand for truck services projected to remain high, these combined factors could keep truck capacity scarce and rates high for the foreseeable future,” the report said.
Hauling the freight
Trucks continue to be the dominant carriers of freight, carrying 70.2 percent of domestic freight in 2017, according to the American Trucking Associations. Strong economic growth kept truckers rolling in the first half of the year, as real gross domestic product increased 4.2 percent in the second quarter of 2018, the USDA reported.
While the economy was heating up, unemployment reached a 10-year low of 3.8 percent in May.
Construction, manufacturing, or local driving positions through ride-sharing services offer competition to long-haul trucking positions.
Some trucking companies have increased drivers’ wages as a result.
Through the first half of 2018, ATA reported the freight tonnage hauled by trucks increased 7.9 percent,up from a 3.8 percent increase in 2017.
The report said DAT Solutions reported strong demand for trucking services caused truckload spot rates to reach a record high in June, topping a 15-month run of spot market rate increases. In the refrigerated truck market, DAT reported the national average spot market truck rate hit the highest point ever recorded, at $2.69 per mile in June, up $0.58 from June 2017, and $0.11 higher than the contract rate. While increases in contract rates typically lag four to six months, after a sustained increase in spot market rates, this year the lag has been only a few weeks.
Refrigerated truck market
Strong demand for trucks and large volumes has mostly affected truck rates for shipments of 500 to 2,500 miles, according to the USDA. The U.S. average refrigerated truck rate reached a record high in the second quarter, for shipments between 501 and 1,500 miles ($2.96 per mile), up 12 percent from the previous quarter ($2.64 per mile).
The U.S. average truck rate for shipments between 1,501 and 2,500 miles was still higher than usual at $2.45 per mile, but was 3 percent lower than the record high of $2.54 per mile, set in the first quarter of 2018. In contrast, average truck rates for shipments less than 500 miles, and over 2,500 miles, have remained within normal ranges.
Fruit and vegetable shipments
Reported U.S. truck shipments of fresh produce during the second quarter of 2018 were a record 9.65 million tons, 21 percent higher than the previous quarter, and 1 percent higher than the same quarter last year.
Shipments from Mexico were the highest in the second quarter, totaling 2.85 million tons and accounting for 30 pecent of the total reported shipments of fresh fruits and vegetables. Loadings from California totaled 2.24 million tons, accounting for 23 percent of the reported shipments. Movements from the Pacific Northwest totaled 1.55 million tons, representing 16 percent of the reported total.
The study noted until 10 years ago, California and Florida were the two biggest suppliers of fresh fruit and vegetables, during the second quarter. In recent years, both states have lost market share to the Pacific Northwest and Mexico, the USDA said.
The volume of shipments from Mexico through Texas reached a new high of 1.30 million tons during the second quarter of 2018, an increase of 8 pecent over the same period last year (1.21 million tons).
Five commodities accounted for 42 percent of the reported truck movements during the second quarter of 2018:
- Watermelons, seedless (11 percent);
- Potatoes (11 pecent);
- Apples (8 percent);
- Onions, dry (7 percent); and
- Strawberries (4 percent).
WP Rawl of Pelion, S.C., a grower/shipper/processor of leafy greens, again participated in Wreaths Across America’ Honor Fleet. The company has participated in the event for the past three years, according to a news release.
Volunteers all over the U.S.honor fallen veterans each December by participating in an annual wreath-laying ceremony. The wreaths, adorned with a red bow, are placed on the graves of fallen veterans.
The annual tribute began in 1992 with Morrill Worcester and his wife Karen Worcester at Arlington National Cemetery. In 2007 Wreaths Across America was formed to honor fallen veterans and since has grown to over 1,400 locations, in 50 states, at sea and abroad. The mission of Wreaths Across America is to ‘Remember, Honor and Teach.’
This year, WP Rawl picked up the wreaths in Columbia Falls, Maine and carried them to Beaufort National Cemetery in South Carolina. The truck’s exterior was displayed with a picture of a national cemetery and included a message of awareness for Wreaths Across America.
“It was very nice to see the turnout this past weekend at the National Cemetery in Beaufort. It was packed. I enjoyed seeing everyone pitching in and helping out,” Darren Gambill, WP Rawl truck driver and a U.S. Army Veteran. The playing of the bagpipes was very moving. It was great to be able to experience this for the first time.”
“Many of our Rawl family members and family of employees are veterans or families of veterans,” Ashley Rawl, vice president of sales, marketing and product development for the company, said in the release. “Participating in Wreaths Across America is a great way to show our gratitude to veterans like Darren as well as honor those who made the ultimate sacrifice for us.”
By The Idaho Potato Commission
Eagle, Idaho – It’s no surprise that during the six week period between Thanksgiving and New Year’s Day more Idaho® potatoes are sold than during any other time of year. From creamy mashed potatoes for Thanksgiving to crispy latkes for Hanukkah to steaming big bakers for New Year’s Day, the versatile vegetable shines during the holiday season! While the preparation options for potatoes are endless, Idaho grows enough potatoes to feed millions of folks in the United States and around the world all year long.
Chew on This…
- Approximately 311,000 acres of Idaho® potatoes (that’s about 13 billions pounds) are harvested each year.
- That’s enough to fill 500 football stadiums 10 feet high!
- Ninety percent of those 311,000 acres will grow russet potatoes like Burbanks, Norkotahs, Rangers and Westerns.
- The remaining 10% will grow niche varieties like golds, reds, fingerlings and more.
- 412 pounds of Idaho potatoes are sold every second!
- Wondering how the potatoes are used?
- 43% are used in processed products (frozen and dehydrated)
- 43% are sold fresh
- 14% are grown for certified seed
- Idaho® potatoes are transported across the country via trucks (70%) and rail (30%).
- What makes Idaho® potatoes different from potatoes grown in other states? It’s a combination of Idaho’s rich volcanic soil, warm days, cool nights and an abundance of clean, fresh water from the majestic mountains.
- Who loves Idaho® potatoes the most? News Yorkers! Followed by folks from Ohio, Florida, Pennsylvania and Texas.
Visit www.idahopotato.com for more fun facts, recipes and cooking tips.
About the Idaho Potato Commission
Established in 1937, the Idaho Potato Commission (IPC) is a state agency that is responsible for promoting and protecting the famous “Grown in Idaho®” seal, a federally registered trademark that assures consumers they are purchasing genuine, top-quality Idaho® potatoes. Idaho’s growing season of warm days and cool nights, ample mountain-fed irrigation and rich volcanic soil, give Idaho® potatoes their unique texture, taste and dependable performance. These ideal growing conditions are what differentiate Idaho® potatoes from potatoes grown in other states. For more information, visit www.idahopotato.com.