Archive For The “Trucking Reports” Category
Imports of tomatoes by U.S. tomato imports was unchanged in 2017, while Mexico continues to be the dominant supplier, although imports from Canada are increasing….Meanwhile, further plunges in citrus shipments are seen in years ahead.
Total fresh tomato imports in 2017 amounted to $2.177 billion, down 4 percent from 2016. Volume of all U.S. tomato imports came to 1.78 million metric tons, unchanged from 2016..
The USDA reports imports from Mexico accounted for 85 percent of the value ($1.842 billion, down 6 percent from 2016) and 90 percent of the volume (1.612 million metric tons, unchanged from a year ago) of tomato imports.
Canadian Tomatoes Increase
Imported tomatoes by the U.S. from Canada were up both in volume and value. U.S. imports of Canadian tomatoes in 2017 were $312.9 million, up 13 percent from 2016. Volume of Canadian tomatoes shipped to the U.S. was 165,400 metric tons, up 7 percent from 2016. Canada represented 14 percent of the value and 9 percent of the volume of total U.S. tomato imports.
The Dominican Republic and Guatemala shipped lesser tomato volumes to the U.S., together accounting for less than 1 percent of total U.S. tomato imports.
Citrus Decline is Predicted
Noticeable decreases in Florida’s citrus shipments are projected to be an issue for U.S. citrus over the next 10 years, according a new report from the USDA’s long term projections issued in mid-February.
Over the next decade, fruit, tree nuts and vegetable shipments are forecast to increase at a modest 0.6 percent annually, when measured by farm weight.
Citrus, however, will suffer declines in shipments during the next decade, plunging from 17.49 billion pounds in 2018 to 14.04 billion pounds by 2027, a drop of 20 percent.
“While the value of production is expected to grow over the next decade due to higher prices, citrus production continues to decline slowly over the projection period, primarily due to loss of bearing acreage in Florida and the spread of citrus greening, a citrus disease spread by insects for which no cure currently exists,” the USDA report states.
The report said citrus greening has the potential to threaten the “entire citrus industry if not closely monitored.”
The USDA said declines in citrus production are projected to be offset by increases in non-citrus fruit.
The value of U.S. fruit, vegetable and nut production will top $65.8 billion by calendar year 2027, up from nearly $52 billion in 2018. The value of production will grow about 2.7 pecent per year for fruits, nuts and vegetables. Of the total value, fruits contribute nearly 40 percent of the total value, tree nuts 18 percent and vegetables 42 percent.
U.S. Potato Shipments are Similar to a Year Ago; A Look at Mexican Product Crossing into South Texas
U.S. potato shipments are remaining fairly steady week to week with total shipments quite similar to a year ago….Meanwhile, here is a look at Mexican produce items crossing the border in the Lower Rio Grande Valley.
Roughly the same amount of U.S. potatoes remain in storages to be shipped from the major potato states that existed at this same time in 2017 as of February 1st.
Storages held 202.55 million cwt. (per hundredweight) at the beginning of February, compared to storages holding 203.10 million cwt. a year earlier. Potatoes remaining to be shipped accounted for 51 percent of the volume by fall storage states, only one percent more than 2017. Potato disappearance is down three percent to 197 million cwt., and season-to-date shrink (loss of product due to quality) has also fallen, down five percent from 2017 to 15.4 million cwt.
The 13 key fall crop producing states listed in the USDA report account for 91 percent of all potato volume.
The leading potato shipping areas last week shipped about the following number of truck load equivalents: Idaho, 1750; Colorado, 625; Columbia Basin (Washington) and Umatilla Basin (Oregon), 340; Wisconsin, 285; Red River Valley of North Dakota and Minnesota, 250; and Nebraska, 185.
San Luis Valley of Colorado potatoes – grossing about $2400 to Chicago.
Stevens Point, WI potatoes – grossing about $3200 to Atlanta.
Rio Grande Valley
Mexican vegetable shipments and tropical fruits are crossing the border at Pharr, in South Texas, on a fairly steady basis from week to week, although volume is not exceptionally heavy on most items. The biggest tonnage is coming from tomatoes and avocadoes. Both commodities are averaging about 1,000 truck loads per week. Tomatoes consist primarily of vine ripes, followed by plum or romas. However, keep in mind the Mexican avocado loadings will soon start declining as the season comes to an end before returning in a few months.
Mexican strawberries are amounting nearly 450 truck loads weekly, with limes have similar, but increasing volume. Otherwise, there are watermelons and cucumbers, with a host of other items with much smaller volume.
In the Lower Rio Grande Valley, Texas grapefruit amounts to around 250 truck load weekly, with much smaller volume found with oranges.
South Texas and Mexican produce – grossing about $5700 to New York City.
Western produce shipments may not be setting many records right now, but in general provide the best loading opportunities in the U.S.
Vegetables are in good volume from Arizona, where it be the Yuma district or Mexican product crossing the border at Nogales. Head lettuce and romaine lettuce account for the heaviest volume with about 2000 truck loads a week from Yuma and to a lesser extent the Phoenix area. Much fewer shipments of broccoli and cauliflower also are available.
Yuma, AZ vegetables – grossing about $7100 to New York City.
Mexican vegetables coming into Nogales distribution centers are led by bell peppers and other peppers totaling about 900 truck loads weekly, and various squash at around 750 truck loads of sweet corn. There’s also decent volume with tomatoes and squash.
Mexican vegetables from Nogales – grossing about $5800 to Miami.
In the Pacific Northwest apple growers and shippers not only know how to produce great product, they’ve developed keen marketing skills over the decades. Apples easily provide the single heaviest domestic fresh produce volume this year. Over 3000 truck load equivalents are being shipped from Washington state’s Yakima and Wenatchee valleys. They also are shipping much lighter volumes of pears.
Washington apples – grossing about $5100 to Chicago.
Southern Washington’s Columbia Basin along with the adjacent Umatilla Basin in Northern Oregon are shipping moderate amounts of onions and potatoes. Combined the two products are averaging 1000 truck loads a week, although the biggest volume is with onions.
Idaho potato shipments are averaging over 1800 truck load equivalents, although similar to Washington apples, a significant amount is moving by rail. Western Idaho and Malheur County Oregon are loading about 650 truck loads of onions weekly.
Twin Falls, ID potatoes – grossing about $5900 to Orlando.
Colorado russet potato shipments from the San Luis Valley are amounting to around 575 truck loads per week.
San Luis Valley potatoes – grossing about $1700 to Dallas.
Produce trucking can be frustrating this time of year as spring is still a month away (March 20th), rates are down from earlier in the year, and spring vegetable shipments have yet to seasonally take off.
An interesting note is imported truck loads that include everything from Nogales and South Texas, as well as ports on both coasts, there were 7000 fewer truck loads shipped than during the same week in 2017. Part of the explanation is many imported produce items are maturing on a more normal schedule this year, compared to last year when warmer weather resulted in a lot of early crops.
Florida spring shipments won’t hit volume for several weeks, but there are signs of life. The new season for red potatoes out of Southern areas is underway, and we are seeing light but increasing volume with vegetables such as beans and cabbage. Tomatoes (mostly mature greens) are averaging around 750 truck loads weekly, although most loads out of the state involve multiple pick ups. Plant City area strawberries are averaging around 500 truck loads a week.
Florida produce – grossing around $3000 to New York City.
Port of Philadelphia
Chilean fruit arrivals are growing in volume. Early season Chilean grapes haven’t been that impressive quality-wise, but it’s good enough you shouldn’t face claims issues over it. There also is increasing volume with peaches, plums and nectarines. However, the biggest single volume item may be pineapples from Costa Rica and other Central American countries.
Otherwise, it is pretty much slim pickings from the Eastern time zone. You’ve got light volume out of New York state with apples, cabbage and storage onions. Eastern North Carolina is shipping around 250 truck loads of sweet potatoes each week, which is more than double the other leading states of California, Mississippi and Louisiana combined.
Michigan is moving about 150 truck loads of apples weekly, primarily from the Grand Rapids region. Some shippers buy items such as potatoes and onions from Western states, repack them, and then ship it out.
By Stemilt Growers
WENATCHEE, Wash. – Honeycrisp apples will have a longer Honeycrisp season this spring and summer. Stemilt Growers will be expanding their Honeycrisp shipping season through mid-summer with a new brand called Honeyhill™.
“Honeyhill™ is an exciting addition to include in our family of brands as we will be offering one of the most popular apple varieties for a longer timeframe,” states Roger Pepperl, Stemilt marketing director. “We’re choosing the best Honeycrisp apples for Honeyhill™ boxes…. that taste as if you had just picked them from the tree back in the fall.”
Stemilt is not allowing just any Honeycrisp apple to be packed under the Honeyhill™ name. Only high-color Honeycrisp apples will qualify for the Honeyhill™ brand. The main strain that is producing high-color and high-quality Honeycrisp apples late in the season is Royal, a new sport of Honeycrisp apples that is actually quite different than the rest of the pack.
“The Royal Honeycrisp is a beautiful strain with great color and finish. Its real advantage is that our teams can pick full-colored fruit at the right starch levels in order to store well in our controlled atmosphere rooms. When we pull these apples out at a later date, the starches have converted to sugars with good acides that deliver that amazing fall flavor in the spring and summer months,” said Pepperl.
Planted in some of Stemilt’s most pristine orchards throughout Washington State, Stemilt’s field team works effortlessly to ensure each Royal Honeycrisp can maximize it’s time on the tree. The Royal strains ability to color well allows Stemilt to pick the fruit in an ideal window where the fruit starch levels allow it to be stored for long-term success. Stemilt also utilizes shade cloth and windscreens to further care for its Royal Honeycrisp apples.
Organic Honeycrisp apples are also available and currently being packed under Stemilt’s Artisan Organics™ label. “We all know organic is a growing category….,” states Pepperl. “We’re excited about Honeyhill™.
About Stemilt
Stemilt Growers is a leading tree fruit growing, packing and shipping company based in Wenatchee, Washington. Owned and operated by the Mathison family, Stemilt is the leading shipper of sweet cherries and one of the nation’s largest suppliers of organic tree fruits. Stemilt has also demonstrated a commitment to sustainable agriculture and social responsibility since 1989, when founder Tom Mathison launched the company’s Responsible Choice program.
Avocado shipments from both California and Mexico are looking strong, while a big increase is seen coming for imported golden kiwifruit.
Mexican avocado shipping volumes are big the second and third week of January, but reaches a peak in the fourth week of the month leading up the big game February 4th. It is known as the Super Bowl effect.
The Hass Avocado Board reports 204 million pounds of avocados were shipped into the U.S. during the first four weeks of January. Of the total amount of avocados, 93 percent were imported from Mexico, with 3.6 percent coming from from California, with 2.7 percent from the Dominican Republic with Chile supplying 0.7 percent.
Despite widespread shortages of trucks being reported around the U.S. in the first half of January, it apparently had minimal affect on shipments for the Super Bowl.
California Avocado Shipping Forecast
Avocado shipments are currently originating both from Mexico and California, although the vast majority are coming from South of the U.S. border.
For example, West Pak Avocado Inc. of Murrieta, CA sources most of its avocados from Mexico and California and sees good supply and quality this season from both areas. Mexico will have strong volume continuing into the summer. California should have good shipments totaling around 374 million pounds.
There was limited California volume is available for the Super Bowl because it is so early in the season, when the limited shipments are typically directed to California receivers. National California avocado shipments typically ramps up in March and April.
Golden Kiwi Shipments
The golden kiwifruit season for imports from New Zealand recently ended, but importers already are laying plans from the new arrivals coming in May.
Golden kiwifruit imports more than doubled in 2017, with the SunGold variety from Zespri accounting for 80 percent of the category. The company is based in New Zealand and set a record with 27.8 million pounds of the fruit imported.
Zespri is planning a 50 percent growth for the coming year and extend the season at the season into March and April.
Mexican mango imports are now taking center stage for U.S. markets, while the imported pineapple season from Costa Rica is starting out with flying colors.
While increased mango volume from Peru was seen December and January, Mexican volume started in late January and now is closing in on 1 million mango boxes per week.
During 2017 Mexican mango volume exported to the United States hit a record at 80 million cases. In fact, Mexico accounts for 62 percent of the mangos exported to the U.S.
Mexican mango exports have increased from 59 million in 2014, to 80 million cases last year.
There was a drop in Mexican exports from 2013, when a then-record 70 million cases were shipped to the U.S. However, there was increased Mexican mango volume each year for at least 10 years, with 40 million cases shipped in 2004.
A total of 23 Mexican states produce mango, with about 25 percent of Mexico’s mango crop being exported fresh.
Imported Pineapples
Strong supplies of imported pineapples are seen through the first half of 2018. Dole Food Co., Westlake Village, CA is a leading importer of the tropical fruit. Costa Rica provides about 80 percent of pineapples in the U.S. as the first half of the year looks better than recent few years. A normal dip in Costa Rican volumes is expected in the late summer and early fall with volumes returning in the fourth quarter. Mexico also is expected to have good supplies, although volume to the U.S. is much less than with Costa Rica.
Over the last four years, cut pineapple has grown much faster than bulk in the U.S.
As recently as 1991, Hawaii provided half of the total U.S. fresh pineapple supply. That year, total supply of fresh pineapple totaled 503 million pounds, of which Hawaii accounted for 250 million pounds and imports provided 254 million pounds.
Fast-forward to 2006 and Hawaii supplied only 192 million pounds of fresh pineapples and import volume ballooned to 1.4 billion pounds.
By 2015, Hawaii’s contribution to the fresh pineapple supply disappeared altogether, while imports supplied all the fresh pineapple supply of 2.3 billion pounds. Hawaii’s demise in the pineapple industry was primarily due to high costs of operation, compared to other areas around the world..
It is a bit amusing watching the produce industry’s reaction to transportation rates and other issues.
Little thought is given to transportation – trucking or rail – until there are problems. Those problems almost always center first on what’s the cost of the truck? Find the cheapest truck available is pretty the industry’s unwritten motto.
This has typically been most true after demand for refrigerated equipment subsides entering the fall as produce volume is seasonally lower. It continues until around March or so when spring produce shipments are increasing and demand for equipment rises accordingly.
Since last year this has all changed. Another cycle in trucking has arrived. These cycles typically last maybe three to five years. The cycle that has ended saw rates for produce truckers remain pretty stagnant. A sluggish economy with stagnant wages did not present as many attractive employment opportunities.
That’s now in the rear view mirror as demand for trucks, and drivers is often outstripping supply. Now there’s near panic is some produce industry corners. Not only are freight rates substantially higher, but getting a truck at any cost is often a challenge.
Truck rates have recently backed off some, but spring is coming soon and we’ll see how long that trend lasts.
The federal mandate for electronic logbooks certainly isn’t going to help no one. Truckers currently are allotted 14 hours of operating time, but how often do they waste much of this time at loading and unloading docks? When multiple pickups and drops are involved, the problems is only compounded.
While truck rates have plunged from only a month ago, they are still much higher than a year ago.
Rates from the California desert are currently about $7,400 to New York City, off 15 percent from three weeks earlier. However, the current rate is still 20 percent above the same time a year ago.
For a load of apples out of the Yakima Valley in Washington state the gross freight rate is around $4,600 to Dallas, 20 percent below only a few weeks ago, but very similar to rates at the same time last year.
Rates from south and central Florida for tomatoes and veggies are mostly below $3000 now, which is 20 percent more that a year ago.
Mushroom shipments look good for the first quarter of 2018, which will be an improvement, at least for some areas of the country….Meanwhile, the forecast for Florida citrus shipments takes another hit.
Shipments of mushrooms from Texas and Florida should be better this year as the region has recovered from hurricane damage last fall. While mushrooms are grown indoors, production still depends on the quality of compost, which is grown outside.
As long as growers don’t have to deal with frozen compost, a relatively mild fall has led to improved conditions. At the same time companies such as Oakshire Mushroom Farm of Kennett Square, PA, which markets mushrooms under the Dole label, see adequate labor as a continuing problem, like other operations, because mushrooms are a very labor-intense crop.
Monterey Mushrooms Inc. of Watsonville, CA also anticipates an good crop for early 2018. The company has 10 farms strategically located around the United States and Mexico and it makes its own compost.
White mushrooms still constitute most mushroom shipments, but brown mushrooms continue to gain. Ten years or more ago, white mushrooms represented over 90 percent of shipments. That has now shrunk to about 70 percent, because baby portabellas are still increasing in popularity. Portabellas have been fairly stable, accounting for around 6 to 7 percent of total volume. Specialty mushrooms, particularly shiitake and oyster, also are gaining in volume.
Florida Citrus Shipments
45 million boxes of oranges from Florida are predicted to be shipped, down 2 percent from the USDA January forecast.
The 2017-18 crop will be the smallest in over 75 years, assuming the estimate is accurate. Hurricane Irma devastated much of the production in the state when the storm hit last September, compounding the low production numbers caused by citrus greening disease.
The current crop projection is off 35 percent from the 2016-17 season.
The forecast for valencias is now 26 million boxes, down 4 percent from the January estimate.The projections for non-valencia oranges and grapefruit are unchanged at 19 million boxes and 4.65 million boxes, respectively.
Before the hurricane, private estimates suggested Florida was set to produce 75 million boxes of oranges this season.
By The California Avocado Commission
IRVINE, Calif. – After weeks of reviewing the impact of wind and fire to California avocado groves, the California Avocado Commission (CAC) announced a 2018 crop forecast: 374.6 million pounds of avocados. The total, despite the ravages of Mother Nature in California’s avocado growing regions, is nearly double the yield of last year’s crop and considerably better than some had feared.
“The CAC 2018 pre-season crop estimate of 374.6 million pounds of California avocados means there will be solid volume…,” said Tom Bellamore, California Avocado Commission president. “Despite some harsh blows from Mother Nature, California avocado growers are resilient, and the industry is expecting a good year.”
The shipping forecast comes after a series of weather events, including the Lilac fire in Riverside county and the Thomas fire in Ventura and Santa Barbara counties. The Thomas fire, which began on December 4 and burned more than 280,000 acres over more than a month, was the largest wildfire in recorded California history. Wind and mudslides also have taken a serious toll on the region. However, the impact on California avocados was relatively limited.
“Many California avocado growers experienced loss, both personal and professional, and our hearts go out to them. Across the industry, though, only about 5 percent of the crop was damaged,” said Bellamore.
To support the 2018 crop, the California Avocado Commission will continue its Made of California marketing campaign with new creative executions. Customized marketing plans for targeted customers will be a focus, and CAC has a full slate of innovative programs in development.
About the California Avocado Commission
Created in 1978, the California Avocado Commission strives to enhance the premium positioning of California avocados through advertising, promotion and public relations, and engages in related industry activities. California avocados are commercially cultivated with uncompromising dedication to quality and freshness, by more than 2,000 growers in the Golden State. The California Avocado Commission serves as the official information source for California avocados and the California avocado industry.