Archive For The “Trucking Reports” Category
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.
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.