Archive For The “Trucking Reports” Category
There will be fewer tangerine and mandarin shipments from the top producing states this season…A look is taken at truck demand, rates and fuel costs…Plus, here is a glimpse at the top 10 potato shipping states.
California is expected to ship 21 million boxes of tangerines and mandarins this season, down from 23.9 million in 2016-17.
Florida is projected to have 860,000 boxes, down from 1.62 million last season, with the dramatic decrease due to the adverse affects of Hurricane Irma.
The Wonderful Co. of Los Angeles and Sun Pacific of Pasadena, CA are two of the larger shippers of the citrus.
Truck Demand and Rates
While demand for refrigerated equipment and qualified drivers has been getting a lot of attention, diesel fuel price are nearly a three-year high, adding the costs of trucking operations. According to DAT Trendlines diesel fuel nationally average $3.02 per gallon in December 2017, which was 16 percent more than in December 2016.
The Allen Lund Company of LaCanada, CA, like many other companies, have noticed the economy really taking off. The transportation firm is seeing 280,000 truck loads a year, a 17 percent increase from the previous year.
Another sign things are looking up for the U.S. economy is the increase in Class 8 truck sales. Over 300,000 Class 8 tractors were sold in 2017. When those trucks are delivered throughout the coming year, trucking capacity will be better.
The Wall Street Journal recently reported analysts are expecting long-term contract rates which shippers negotiate with carriers should increase between 5 percent and 8 percent this year.
Top 10 Fall Potato Producers for 2017
Total U.S. fall potato crop 399,840,000 cwt. Total U.S. Crop 441,310,000 cwt.
| RANK | State | Production (hundredweight) | Percent of Total
U.S. Fall Crop |
| 1 | Idaho | 131,330,000 | 32.8% |
| 2 | Washington | 99,000,000 | 24.8% |
| 3 | Wisconsin | 29,150,000 | 7.3% |
| 4 | North Dakota | 25,160,000 | 6.3% |
| 5 | Colorado | 21,530,000 | 5.4% |
| 6 | Oregon | 21,400,000 | 5.4% |
| 7 | Minnesota | 18,430,000 | 4.6% |
| 8 | Michigan | 18,000,000 | 4.5% |
| 9 | Maine | 15,040,000 | 3.8% |
| 10 | Nebraska | 9,070,000 | 2.3% |
| All others | 11,750,000 | 2.9% |
Source: USDA-NASS
2017 Minnesota Crop Production Report
Fall potato production in Minnesota was 18.4 million hundredweight (cwt.) according to the USDA, National Agricultural Statistics Service. That is a 9.7 percent increase over 2016. Planted acres at 46,000 was up 3,000 and harvested acres were up 3,500.
The coming months should be good for hauling imported Chilean grapes arriving at U.S. ports on both coasts….Meanwhile, a number of specialty produce items are popular for the Chinese New Year celebrated in February.
Imported Chilean grapes are expected to be arriving at U.S. ports with more volume than in recent years, although arrivals this winter started about a week or two later than a year ago, when arrivals were earlier than normal.
Imports to North America from Chile continues to increase accounting for a larger share of the volume. About 39,000 tons had been shipped this season from Chile through early January, down from 79,000 at the same time last year. But as mentioned, the grapes matured later this season in Chile.
Observers believe the overall grape volume will exceed 90-million cartons, which would be slightly more than average. Arrivals are now coming in good volume, with a steady flow of produce continuing through April. For several years, North American imports have accounted for about 45 percent of the Chilean grapes, that number has been approach 50 percent more recently.
Chinese New Year items
Specialty produce items popular for Chinese New Year promotions should be in good supply for the weeks surrounding the February 16 holiday. The holiday festival itself lasts for two weeks celebrating the Year of the Dog.
Among the items that will be shipped are ginger, bok choy, gai lan and other Asian vegetables, as well as citrus items such as pummelo, kumquats and Buddha’s hand, dragonfruit and young coconut, as well as Snow peas and snap peas. Other items sometimes connected to the holiday are Turmeric, Chinese long beans, daikon, starfruit, jackfruit, yu choy and lokam oranges.
World Variety Produce of Los Angeles markets under the Melissa’s brand and is one of the largest shippers of specialty produce items in the U.S. The company is sourcing leafy greens from California, other vegetables from Mexico and fruit from tropical areas.
Thomas Fresh of Calgary, Alberta is a produce repacker who handles produce specialty an other fresh items.
(Photo was taken by Bill Martin during an 11-day trip Chile in January 1992.)
During the next couple of months Mexican asparagus will be crossing the border at someplace besides Nogales….Also, 2017 closed out the year with some record setting trucking freight rates in the U.S.
Asparagus out of the Mexico’s Caborca region in northern Sonora, Mexico will be crossing the U.S. during February and March. Volume is expected to increase 15 percent over last year. Quality is reported to be good.
“The weather in the Caborca region has been excellent and pending continued good weather, we anticipate promotable quantities in February and March in a full range of sizes,” said Katiana Valdes of Crystal Valley Foods of Miami in a news release. The company is a grower/shipper and importer. Mexican asparagus is imported as product from Peru comes to a seasonal low. The Mexcian “grass” crosses the border into the U.S. through San Luis, AZ, located just south of Yuma.
Yuma vegetables – grossing about $8700 to New York City.
Record December Freight Rates are Reported
According to a press release by DAT, a load board, freight rate and trucking trends company, the average reefer rate for December was $2.46 per mile, 3 cents higher than the November average and another all-time high. Spot truckload van rates averaged $2.11 per mile nationally, up 4 cents compared to November and the highest monthly average since DAT started tracking freight rates in 2010.
Truckload freight availability in December was cushioned by retail shipments, demand for fresh and frozen foods, and e-commerce fulfillment. Available truckload freight was 25 percent higher than in December 2016.
However, overall freight volume in December fell 3 percent compared to a strong November, according to the release. Some of the factors in that decline were inclement weather in parts of the U.S and the December 18th electronic logging device mandate. That combination of strains on equipment and drivers meant that shippers and freight brokers paid premiums for available trucks.
Overall citrus shipments from the nation’s three leading states are expected to be lower this season for various reasons.
California citrus shipments of navel oranges and lemons will be down this season. It also means lighter than normal loadings towards the end of the season, and perhaps shipments ending sooner than usual.
California is expected to ship 35 million boxes of navel oranges, down 11 percent from the 2016-17 season. While California lemon volume should remain about this same this season at about 20.5 million boxes, it will be lower than normal.
Southern California citrus – grossing about $8000 to New York City.
Florida Citrus Shipments
In Texas, grapefruit has received a lot of interest after Hurricane Irma significantly reduced volume from Florida. Florida will probably ship about 4.65 million boxes of grapefruit, down more than 40 percent from the 2016-17 season. Florida grower-shippers have had a tough time, with Hurricane Irma estimated to have caused at least $760 million in losses to the citrus industry there.
Shipments are down 40 percent to 55 percent depending on grove location. Quality also has been an issue due the hurricane winds that really beat up the fruit, as well as weakening the trees.
Imports from Mexico and Morocco have resulted in Seald Sweet of Vero Beach, FL filling gaps left by Florida citrus, and the company has been bringing imported fruit into its Florida packinghouse.
Duda Farm Fresh Foods of Oviedo, FL reports its orange volume is down an estimated 29 percent, grapefruit off by 65 percent and tangerines and mandarins plunging by 80 percent. Duda’s grapefruit shipments that usually continue into March, ended in early January.
Duda has an import program as well, including clementines from Morocco.
Texas Citrus Shipments
Texas grapefruit shipping estimates have been lowered from 5.3 million boxes to 4.1 million boxes. Shipments are ahead of estimates, with about 56 percent of the overall crop remaining to be shipped, compared to 68 percent the same time in 2017. Loadings by truck, however, should stay strong through the spring.
Lower Rio Grande Valley citrus – grossing about $3400 to Chicago.
T
here’s a lot of talk about soaring truck rates, including produce, and how long these levels will last, considering January is typically one of the poorest months for decent rates. Nobody really knows, so it is going to be very interesting once spring produce volume starts kicking in with March.
In January, some truck rates exceeded $10,000 from the Imperial Valley of California to New York City. This compares to a $6,000 to $6,200 rate in January 2017. Two years ago, the rates were $5,800 to $6,000 to New York.
Florida has a similar situation where produce rates from central and south Florida to Baltimore were up 30 percent a week ago compared with the previous week, grossing $2,700 to$2,900. The same time a year ago those rates were $1,900 to $2,200, and $2,100 to $2,200 two years ago.
While Florida volume is seasonally low compared to what it will be in April and May, product is moving fast partly because the Sunshine State has a significant freight advantage over Mexican vegetable shipments to many eastern seaboard markets.
In the Red River Valley of North Dakota and Minnesota a bumper red potato crop is 46 percent larger than a year ago. Yet some observers believe potato shipments could be up to 20 percent more if the trucks were available.
Potato rates from Grand Forks, MN are $3 per hundred weight (cwt) higher than last year to South Florida, putting the gross freight rate at $6000. Rates to Boston from the valley are up $2 per cwt. and $2.50 to Chicago.
Significant credit has to be given President Trump cutting regulations, as well as the recent tax bill which is helping spur the economy. Business is booming for many. This has increased demands for transportation services, plus there is a scarcity of qualified drivers, leaving many shippers scrambling to ship sold product. There also are the adverse consequences of the electronic logging device mandate, making it difficult if not impossible to fudge on hours of service.
Many see a need for changes in hours of service. For example, time spent waiting at loading docks counts against operating hours. Produce is a supply and demand business and demand simply is outstripping the supply of available drivers.
Dozens of different types of produce items, led by vegetables, represent crossings at the Mexican border into Nogales, AZ, as well as into the Lower Rio Grande Valley of Texas. While produce haulers are feasting on higher freight rates, produce shippers are hoping freight costs will subside soon.
Last week rates on Mexican produce coming through Nogales were higher for some destinations with driver and equipment shortages reported. For example rates from Nogales to Los Angeles were generally ranging from$1,800 to $2,000 per load, a 6 percent increase from a week earlier, but 50 percent higher than the $1,200 rate at the same time during the past two years.
A few rates exceeded $10,000 from Nogales to New York City last week, but recently have dropped as much as 15 percent.
Tomatoes (all types) are providing the heaviest volume at around 1,150 truck loads a weeks. About 900 truck loads of cucumbers are crossing the border each week with squash and bell peppers also having good volume.
Shipments Through South Texas
In the Lower Rio Grande Valley of Texas some shippers can’t remember such serious truck shortages for this time of the year. One citrus shipper needed 20 trucks to cover his loads a couple of weeks ago. For a six-week period ending with the first week of January, rates for citrus from the valley to L.A. have soared from $2700 to $5500. Overall, South Texas produce rates are generally up about 20 percent from a year ago.
Produce rates from South Texas to Chicago have been ranging from $4000 to $5000, with the average being around $4500, still quite a strong rate. Produce haulers were grossing around $8800 to New York City.
Mexican tomatoes are providing the heaviest volume with about 1000 truck loads a week, with avocados about one-half this volume. Other leading items range from limes to various types of tomatoes and broccoli.
South Texas grapefruit and oranges are averaging about 350 truck loads each week.
Columbian imported avocados are being introduced to the United States…Meanwhile, it is springtime in Chile and it’s that time of the year for arrivals of Chilean grapes and well as other fruits.
Last August the USDA approved hass avocados imports by the U.S. from Colombia. It won’t be heavy volume for sure but observers see slow, but steady increases in 2018. Colombian agriculture officials said in a news release that hass exports will start this month from a farm near Antioquia, a production area that has been approved for exports to the U.S.
Hass avocado exports from Colombia will increase by 20 percent to Europe and North America, according to the officials with the Colombian Agricultural and Livestock Institute. The USDA reports through November 2017, imports of Columbian avocados totaled 29,300 metric tons.
The Columbian institute works with 33 hass avocado production sites including buffer areas. After complying with plant health requirements put in place by USDA and Colombian officials, all those sites will be authorized to export to the U.S.
Chilean Fruit Imports
California grape shipments to U.S. markets are on their last leg. Quality has been variable in recent weeks although plenty of pretty sweet grapes have been loaded for this late in the season. As California finishes up it season, Chilean import grapes are already arriving by boat at U.S. ports, but at this point mostly at Philadelphia. As fruit volume increases from Chile, other ports such as those at Los Angeles will begin receiving product. It is early in the Chilean grape season and around 375 truckloads of the fruit are arriving weekly, but volume is increasing with the majority of the volume coming during the next couple of months. Chilean peaches and plums also are coming in by boat, but in very light volume that also is increasing.
(Photo was taken by Bill Martin in January 1992 on a trip to Chile. It was photographed at a grape packing plant in Northern Chile.)
The USDA sees in it latest estimate Florida citrus remaining on schedule to ship 46 million boxes this season….Meanwhile Vidalia onions are in the ground for the season starting in April.
That estimate is a 33 percent plunge from the 2016-17 shipping season, but is unchanged from the December estimate, a first for this season.
The Florida citrus industry took a hammering from Hurricane Irma, which stripped fruit from trees and also stressed many to the point that growers expected increased fruit drop would happen throughout the season. Some trees were uprooted entirely, and others were damaged by standing water in the days after the storm.
The USDA estimate calls for 19 million boxes of early, midseason and navel varieties (down 42 percent from 2016-17) and 27 million boxes of valencias (down 24 percent).
Florida continues to face its lowest citrus forecast in more than 75 years.
Florida’s famous citrus industry and its growers continue to struggle with the unprecedented damage caused by Hurricane Irma and this damage, combined with the cumulative impacts of citrus greening, leaves Florida’s growers in desperate need of government support. Industry officials continue to work with Florida Governor Rick Scott and leaders in Washington to get Florida’s growers the relief they need to rebuild and replant.
The USDA estimate for California citrus was also unchanged from December, with the state projected to ship 35 million boxes of navel oranges and 11 million boxes of valencias. Texas is expected to ship 1.83 million boxes of oranges, up 11 percent from last month’s forecast and up 34 percent from the 2016-17 season.
Florida citrus – grossing about $3200 to New York City.
Vidalia Onions
The Vidalia onion district in Southeastern Georgia accounts for about 22 percent of the total sweet onion shipments in the United States. The product is in the ground and should be available for loading in April. Georgia cold and even freezing weather can be okay with planted onions in the ground, as long is the temperature doesn’t plunge to low for too many hours. There will be more information in the coming weeks.
The New Year started off with good news for owner operators and small fleet owners, but had those in the produce industry anguishing over the cost of transportation rates.
A few coast-to-coast rates out of California actually topped $10,000 with the beginning of January. Produce rates have soared as much as 30 percent from some shipping areas. It has caused some int he produce industry to consider rail service, something they seldom think of when rates are more in line.
Depending on whether you are a trucker or a shipper and whether you have contract rates or are dealing in the spot market has a big affected on how you view the rate changes.
Washington state apple rates out of the Yakima Valley in early January to Boston were grossing about $8,400, which mean an additional one dollar cost onto a each 40-pound box of apples. While produce haulers like it, not so with produce receivers.
Vegetable shipments out of the Imperial Valley of California to New England led by head lettuce was grossing about $8400, about $2200 more than at the same time two years ago.
Electronic logbooks, which recently went into effect are being blamed for some higher rates, although it doesn’t appear the new regulations are really being enforced, at least yet. The new devices make it more difficult for truckers to fudge on their hours of service and if adhered to means drivers can travel fewer miles per week.
While it may be difficult to pinpoint the exact reasons for higher produce rates, undoubtedly an improving U.S. economy is creating a bigger demand for refrigerated equipment. Trucking is a hard life and a demanding one and with better economic conditions, many drivers are seeing other jobs becoming available, not only to make more money, but allowing them to be home more with family. Still, January is supposed to be one of the slowest times of the year for produce truckers as less volume of fruits and vegetables are generally available. If rates are ever in the tank it is often during the first quarter of the New Year.
By Chilean Fruit Exporters Association
SANTIAGO, CHILE — Chile’s blueberry exporters have achieved the highest weekly export figure in the history of the sector in the country, having shipped some 11,575 tons of fruit during week 51. With 45% of the 2017-18 campaign now completed, a total of around 46,000 tons of Chilean blueberries have been exported over the season as a whole, during which time producers and exporters have benefited from favorable climatic conditions.
According to the Chilean Fruit Exporters Association’s Blueberry Committee, the season has continued to progress in a normal manner, setting it apart from the previous campaign when the crop arrived several weeks early leading to complications in export markets.
During the last week of December (week 52), Chile exported 9,600 tons of blueberries, and it is estimated that over the coming weeks shipments will continue to be maintained at around 9,000 tons, the Committee said in its latest Crop Report.
To date, the US remains the principal market for Chilean blueberries, having received 55% of volumes exported during the current season, followed by Europe at 25% and Asia at 16%.
In terms of organic blueberries, a segment which is being tracked by the Crop Report for the first time, Chile exported 411 tons of fruit in week 52, contributing towards 2,630 tons for the campaign to date as a whole.
Chilean organic blueberries have so far accounted for around 6% of total exports in the ongoing 2017-18 season; a percentage which is expected to increase when harvesting begins in central the Araucan region and other areas further south.