Archive For The “News” Category
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
U.S. apple exports exceeded 1 billion pounds during the August to January time period, according to recent USDA data. The volume represents a 47% increase compared to the same period last year.
The increase in export volume was led by Mexico, the main destination for U.S. apples, which jumped from 205 million pounds in 2022-23 to 299 million in the current season.
Another market pushing export growth is India. After India removed retaliatory tariffs of 20% on U.S.-grown apples for the 2023-24 season, mid-season export volumes grew 16 times higher than the 2022-23 season total.
Before the tariffs were imposed, Washington state exported US $120 million worth of apples to India. At the lowest point, Washington growers exported less than US$1 million.
Through January 2024, the U.S. had exported almost 39 million pounds of apples to India, compared to the 584,000 pounds it exported in the same period last season.
In 2023, various trade policies negotiated by the U.S. government, including tariff removals for apples, helped U.S. agricultural producers and exporters of different products gain access to potential markets worth nearly $6.4 billion, according to the USDA.
In Taiwan, U.S. apple exports also enjoyed impressive growth from 51.5 million pounds in 2022-23 to 123 million in the current season. The U.S. remains the main supplier of apples to this market.
Volumes to China are also on the rise. Even though the country has just over 1% share of total exports, shipments this season have grown 84%, reaching more than 19 million pounds.
Colombia also seems to be recovering demand for U.S. apples, following a big drop last season when it imported only 6.6 million pounds. This year, shipments have passed 30 million.
It has been a historic year for apples in the U.S., with forecasts indicating more than 10.5 billion pounds expected for production. The record harvested posted an unexpected challenge to growers: oversupply.
Fall hurricanes and recent drought combined with other factors have reduced some fresh produce volume in Mexico in recent months, but the value of U.S. imports from the country continues to climb.
U.S. imports of Mexican fresh vegetables in 2023 totaled $8.5 billion, up 7% from 2022 and 13% higher than 2021, according to USDA data. For 2023, the USDA reported Mexico accounted for 69% of the value of U.S. fresh vegetable imports.
By selected commodity, U.S. imports by value of Mexican fresh vegetables (with percent change from 2022) were:
- Tomatoes — $2.7 billion, up 10%.
- Peppers — $1.5 billion, up 7%.
- Cucumbers — $805 million, up 14%.
- Other fresh vegetables — $756 million, up 14%.
- Lettuce — $497 million, down 13%.
- Cauliflower and broccoli — $438 million, up 8%.
- Squash — $408 million, up 1%.
- Onions — $403 million, down 1%.
- Asparagus — $360 million, down 1%.
- Beans — $129 million, up 17%.
- Celery — $87 million, up 9%.
- Eggplant — $83 million, up 8%.
- Carrots — $81 million, up 15%.
- Cabbage — $61 million, up 3%.
- Peas — $47 million, up 43%.
- Garlic — $40 million, up 13%.
- Radishes — $30 million, up 12%.
- Okra — $13 million, up 3%.
U.S. imports of Mexican fresh and frozen fruit topped $9.8 billion in 2023, up 3% from 2022 and 12% higher than 2021. Mexico’s share of U.S. fresh and frozen fruit imports was 49% in 2023, trade numbers show.
By selected commodity, U.S. imports by value of Mexican fresh and frozen fruit (with percent change from 2022) were:
- Avocados — $2.7 billion, down 5%.
- Berries (excluding strawberries) — $2.6 billion, up 4%.
- Strawberries (fresh or frozen) — $1.3 billion, up 6%.
- Citrus — $855 million, up 7%.
- Grapes — $833 million, up 26%.
- Mangoes — $476 million, up 1%.
- Melons — $447 million, up 10%.
- Bananas/plantains — $204 million, down 9%.
- Pineapple — $43 million, down 14%.
By Matt Barnes ALC Human Resources
The impact of the 2020 pandemic on the job market reverberates to this day. In 2024, global conflicts, supply chain disruptions, the double-edged sword of technological advances, and remote/hybrid opportunities amplify the sensation that recruiting and retention are more challenging than ever in this ever-changing, roller-coaster landscape. How do companies cope?
In 2021, as resignations surged and companies faced critical labor shortages, impacted employers responded with raises, signing bonuses, and perks to boost employee wellness. This created short-term peaks in starting salary ranges that trickled beyond the most affected industries. As a result, Americans quit 6.1 million fewer jobs in 2023 compared to the previous year, a 12% decrease, and 353,000 jobs were added in January 2024. The unemployment rate stayed at 3.7%, just above a half-century low. These numbers point to a strengthening economy, but just when the data indicates stabilization, the media is reporting mass layoffs at major companies, with predictions of more to come, plus smaller pay increases and hiring slowdowns in certain sectors as large organizations struggle to scale up with the “new normal.” The annual turnover rate for the transportation industry consistently hovers around 50%. This speaks to the volatility of the job market, meaning the “job-hopping” trend doesn’t look to end soon as employees frightened by potential layoffs look for opportunities to secure a more reliable future.
Hiring and retaining good employees has never been an easy task. This is all the more so during turbulent social, political, or economic times. Lucky for ALC, all of those factors are in play in 2024.
Wait, did I say “lucky”?
That’s right. And I’ll double down on it.
In his book, “The Obstacle is The Way,” NY Times bestselling author, Ryan Holiday writes, “You never want a serious crisis to go to waste. Things that we had postponed for too long, that were long-term, are now immediate and must be dealt with. Crisis provides the opportunity for us to do things that you could not do before… In fact, half of the companies in the Fortune 500 were started during a bear market or recession.”
To quote former Intel CEO, Andy Grove, on what happens to businesses in tumultuous times: “Bad companies are destroyed by crisis. Good companies survive them. Great companies are improved by them.”
The companies with the biggest advantage in such a climate have great benefits, culture, and proven stability resulting from sound financial practices, expansion, and opportunities for internal career growth. A quick check of ALC’s recent internal communications (celebrating 20 and 25 year anniversaries, advertising new positions and growth opportunities) and a look at the Managers’ Meeting agenda tells the story of a company perfectly positioned to seize the advantage of a job market in flux and provide opportunities to job seekers on the hunt for long term security.
*****
Matt Barnes has worked in HR, Recruiting, and Personnel Development for 27 years across multiple industries including Manufacturing, Engineering, Healthcare, and Transportation. Matt was hired by ALC in 2022, and promoted to Sr. Director of Human Resources the following year. A graduate of the University of Wyoming, and a native of Tennessee, Matt has used his diverse background and experiences to develop expertise in domestic and international talent acquisition, team building, labor law, employee relations, conflict resolution, and organizational design.
matt.barnes@allenlund.com
The U.S. national orange forecast is dropped 1% this month in comparison to March, but is still 7% above the 2022-23 season.
The lower forecast results from a decrease in production in just one state, Florida. The USDA’s April citrus forecast attributes Florida’s dip mostly attributed to a decrease in production of Valencia oranges, often referred to as “juice oranges,” and grapefruit.
Florida’s Valencia orange shipments are down to 12,000 boxes, an 8% decrease from the previous month, but up 24% from last season’s numbers. Oranges are the most widely grown citrus in Florida and the Valencia variety makes up most of the industry.
The state’s orange juice production has been in a steady decline due to citrus greening disease, HLB. The disease affects the sweetness and color of oranges, leaving larger portions of Florida’s crop ineligible for juice production. National regulations establish juice oranges must reach a Brix level of 10.5 degrees.
A USDA Row Count survey conducted at the end of March showed that 51% of the Valencia crop has been harvested, and the fruit size was below average.
The state also saw a 9% decrease in grapefruit production, from 2.2 million boxes in March to 2 million in April. Other citrus production remained
unchanged for non-Valencia oranges at 6.8 million boxes, and tangerine and tangelos at 500,000 boxes.
Texas saw a 50,000 box increase in Valencia orange production and 100,000 in non-Valencia oranges. California did not see an increase in its orange production but saw a 300,000 growth in grapefruit and 1,000 in lemon.
PhilaPort is known for being a prime destination for imported fruits and this situation is not expected to be negatively impacted due to the collapse of the Francis Scott Key Bridge in Baltimore after being hit by a ship on March 26. It resulted in the deaths of 6 people, and widespread speculation over its impact on other East Coast ports.
The Port of Baltimore does not handle large produce volumes. However, those ships normally going to Baltimore now have to reroute to other East Coast ports. This raised numerous questions about the capacity to handle the additional cargo.
The Port of Philadelphia is a major destination for produce imports in the U.S., and has already received additional ships and will continue to receive more.
PhilaPort has experience with the type of cargo being diverted and is confident it will be able to handle it, without affecting other operations.
At PhilaPort, 54% of the containers handled are refrigerated, establishing itself as the go-to port for produce.
The Delaware River port community encompasses three separate entities, Pennsylvania, New Jersey, and Delaware. Among the three, they account for $6.6 billion in total food imports, with fruits and vegetables accounting for more than $4 billion of that total.
Both New York and Virginia, have larger ports capable of providing the additional offload service, meaning those imports don’t have to be delivered to Philadelphia.
For the automobile industry, one of the largest categories for the Port of Baltimore, it is not expecting a big flood of additional cars.
The Port of Philly gives priority to fruits and vegetables, receiving large shipments from the west coast of South America.
PhilaPort expects no negative impacts on its produce shipments from any diversion noting it has dealt with cargo surges in the past.
Philadelphia received its largest ship ever, the CMA-CGM Marco Polo, a 16,000 TEU ship recently. The model is the largest type of container ship that can land in the U.S. East Coast.
The ship was scheduled to go through the Suez Canal and pick up clementines in Morocco. However, the conflict in the Red Sea meant the ship had to go south around South Africa.
With the opening of this seasonal service, the port is optimistic it will be receiving a lot more fruit in the future.
Since this route starts in China, it should open opportunities for frozen fruits and vegetables from East Asia in the future.
Additionally, members of the Cosco Shipping Lines company intend to start a new service from the west coast of South America to Philadelphia.
The details of this new route have yet to be revealed , but the port expects the service to start soon.
It very well could ship from Chile, Peru, and Ecuador with fruits up to Philadelphia.
This means now the top 5 global shipping companies will have operations in the Port of Philly.
By Isabella Silva, ALC Marketing Coordinator
Recent storms in California have significantly impacted agricultural operations. However, the U.S. Department of Agriculture (USDA) is ready with technical and financial assistance to aid farmers and livestock producers in recovering from these adverse weather events. California’s agricultural sector has demonstrated remarkable resilience, supported by infrastructure enhancements, crop diversification, government assistance programs, and ongoing research and innovation efforts. It’s fascinating to note that California was in a severe drought just three years ago, highlighting the striking contrast in weather patterns. Nevertheless, both extremes resulted in similar agricultural shifts, noting the industry’s adaptability. This article explores the sector’s recovery from floods and projects California’s demand for refrigerated trucks.
According to the UC Agriculture and Natural Resources, investments in infrastructure, such as levees and irrigation systems, have played a crucial role in mitigating flood damage and protecting agricultural lands. Farmers in California have implemented crop diversification strategies by planting flood-tolerant varieties to minimize losses. Partnering with Full Belly Farm in Yolo County, California, the USDA California Climate Hub conducted an extensive case study emphasizing adaptation planning practices as opportunities to alleviate the impacts of extreme weather conditions. Their focus on building soil organic matter not only improves crop fertility, but also increases soil water retention and holding capacity. Ongoing research endeavors aim to develop flood-resistant crop varieties and innovative farming techniques, further enhancing the industry’s resilience against future flood events. As government-sponsored insurance and assistance programs offer crucial financial support to farmers, it’s important to see how this reflects the transportation industry.
DAT reported citrus, almonds, avocado, and strawberry crops are expected to be impacted and have already contributed to 84% fewer truckloads of produce compared to this time last year. However, there’s still ample time for the 2024 produce season to regain its momentum, even with the national produce volumes down 17% from last year. With more resources, solutions, and research each year, California is continually improving its ability to address flooding challenges. This suggests a potential increase in the demand for refrigerated trucks in California’s agricultural supply chain, a positive sign for the industry’s recovery.
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Isabella Silva graduated from St. Edward’s University in 2022 with a BA in Communication, complemented by minors in Psychology and Health Communication. In July of the same year, she began her career at the Allen Lund Company in the Marketing department. Isabella is set to start her MS in Public Relations Innovation, Strategy, and Management at the University of Southern California in May.
isabella.silva@allenlund.com
The Port of Houston is in the midst of numerous upgrades and expansions, while propelling itself into the future.
With strategic investments in new equipment, terminal infrastructure and channel improvements, the port continues to solidify its position as a vital hub for trade in the Gulf region.
“American farmers and ranchers depend on a reliable and efficient transportation system to move their products to market,” Agriculture Secretary Tom Vilsack said in a news release.
According to the USDA, the Port of Houston has faced challenges in handling agricultural exports due to a shortage of chassis, leading to inefficiencies in moving reefers on and off vessels.
“The USDA is pleased to announce the partnership with the Port of Houston and the expanded collaboration with NWSA to further ease port congestion. Through these investments, we continue to deliver on our promise to bolster the supply chain and support American-grown food and fiber,” Vilsack said in the release.
With support from the USDA Agricultural Marketing Service, the port is leasing additional chassis to mitigate these challenges.
“This is an opportunity for new or emerging candidates, or new or emerging commodities to enter the US marketplace. And that’s what makes the Port of Houston so great,” said Dante Galeazzi, CEO and president of the Texas International Produce Association.
Additional improvements at the Port of Houston aim to optimize infrastructure and channel capacity to better serve the region.
This includes widening, deepening and maintaining the Houston Ship Channel, driving the development of landside infrastructure and inland distribution networks, and enhancing efficiency and resilience through innovative technology and other strategies.
“Port of Houston only has room to grow,” Galeazzi said.
The Pro Citrus Network, operating through the Port of Houston, plays a vital role in facilitating the efficient transportation and distribution of citrus products.
Founded in 2004 in California as a grower-shipper, PCN was the first to import lemons into Port Houston in 2008. Since then, PCN has grown throughout Texas and the Midwest.
After outgrowing several leased facilities in Houston, PCN launched sister company Foremost Fresh Direct to service PCN to provide citrus year-round, as well as service other fresh produce and perishable customers needing cold storage, bringing additional commodities including avocados, grapes, melons, pineapples, juice and additional perishable items.