Posts Tagged “Allen Lund Company”
By Iyer Amruthur, Business Development Specialist, ALC San Antonio
The Legend of Topo Chico has a near and dear place in every Texan’s heart as the premier choice for natural sparkling mineral water. From an ancient story of an ailing Aztec princess whose father, Movtezum I Ilhuicamina, searched far and wide for a cure; wise priests told the king his daughter must bathe in the mystical waters to the north of them. The tribe embarked on a search, for health.
The king took his daughter to the springs by a mole-shaped hill called Topo Chico. After bathing in, and drinking the waters, legend has it that she was immediately cured. Now we see this same spring as one of the most popular sources of beverages in the world! Topo-Chico began selling its mineral water to the U.S. in the 1980s, with its primary market being the Mexican-American communities.
Texas was the biggest consumer of the Topo Beverage, and soon it developed a cult following which exploded in 2010. With retro-green-tinted bottles, and a mythical location in one of Monterrey, Mexico’s inactive volcanoes, they took the market by storm. That is until they closed one of the biggest deals in their history.
In 2017 Coca-Cola, the world’s largest soft drink company acquired Topo Chico for 220 Million Dollars. With the added supply chain, marketing, and business expertise they were able to expand their sales by 25% in the first quarter. Before the acquisition, 70% of all Topo Chico sales were in Texas but with Coke’s distribution network, they were able to easily reach areas they were unable to before. Soon they started to pop up in convenience stores, additional Walmart’s, and even Costco.
Coke understands the effect the supply chain can have on companies. One thing that the company recognized about Topo-Chico is that the following was cult-like, it was based in certain demographics, and it had a certain image people loved. As Kellam Mattier, a VP of innovation at Coke said, “It’s important for us to maintain the relevance with the core Topo Chico fan base while introducing the brand to new people.” This helps the original company, traditionally regional, to bring that same company feel to the whole nation.
Now with 2021 on the horizon, Coke will debut Topo Chico’s first Hard Alcoholic Seltzer in Latin American cities and will be launching in the U.S. in 2021. This shows the perfect synergy, and what happens between a loved brand, and an expert distributor. Logistics has a lot of the focus on trucks, but before trucks even hit the road, someone needs to make routes, orders, and deals. This is what Coke brings to the table, and why you may see Topo Chico in a store near you soon.
With the bottled-water industry booming to $16 billion in 2017, the market was shifting slightly away from soda. In this gap today, Topo-Chico fits perfectly and is growing just like the legend from long ago.
Iyer Amruthur is a business development specialist in the ALC San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.
By Braden Goodere
Business Development Manager, ALC San Francisco
Resilience is an important part of this industry and this year is no exception.
I believe this quote by John Rockefeller perfectly describes the current state of our industry. “If you want to succeed, you should strike out on new paths, rather than travel the work paths of accepted success.”
The way growers, shippers, retailers, and transportation providers deal with ever constant change, have determined their success in the new “norm” we live in today.
Sales obviously has had to adapt, as well. The conventions that take place throughout the year have all taken place virtually and the in-person handshakes have been replaced by video chat requests. The most common word used to describe this year’s market is “uncertain” and with many clients working from home they depend on us more than ever to not just provide fair rates but to educate them about what we are seeing and hearing in the market.
Although rates started out lower than expected for summer, freight rates increased quickly and the usual decrease after the 4th of July never happened. This left many clients scrambling, looking to secure capacity for their supply chain.
Our team at Allen Lund Company stood by our clients, growing year-over-year and absorbing costs on a percentage of our freight. Much of the success in expanding our base over the past seven months is due to the hardworking, essential employees throughout our offices working diligently with our clients to navigate the road ahead.
As we prepare for the holidays, our industry and companies’ resilience will once again be put to the test. California outbound freight is now seeing dry van rates surpass the refrigerated freight market. Many of the large cultural festivals that occur during this time are not taking place in person, however, we still anticipate drivers continuing to take time off to spend time with family.
Keeping an open dialogue with the companies we work with allows them to keep surprises to a minimum and in turn, help them service their own customers and consumers. While the upcoming holidays will be different for everyone, we know that our customers depend on and appreciate the resilience of our team.
Braden Goodere began working for the Allen Lund Company in September of 2013 as a business development specialist. In September 2019, he was promoted to business development manager. Goodere joined the company with many years of experience in agriculture, having grown up on a ranch. He attended Cal Poly-SLO and received a BS in agribusiness finance.
The Allen Lund Company has committed to sponsorship and participation in Navidad en el Barrio, an organization established in 1972 by Danny Villanueva, former NFL player, to provide a healthy Christmas dinner to the most underserved families in Southern California. This will be ALC’s 16th year supporting this event. This year due to the pandemic, distributing Christmas dinners to 10,000 families is the goal with all of the proper protocols in place.
“We look forward to working with Navidad en el Barrio every year”, commented Nora Trueblood, director of marketing for the Allen Lund Company. “This year has been challenging to make sure that the warehouse and distribution processes all meet COVID-19 protocols but we will ensure that the communities of Southern California will have plentiful dinners to feed their families this Christmas.”
The Allen Lund Company coordinates transportation for perishables from growers to Southern California. Depending upon the size and location of the donation, ALC will combine products in the most efficient way to move to Los Angeles, where the donations are divided for the Christmas dinners.
Over the years, Grimmway Enterprises, Inc., Wada Farms Marketing Group, LLC, Duda Farm Fresh Foods, Mission Produce, Inc., Rainer Fruit Co., and so many other companies have joined ALC in the effort to give the least served in Southern California a proper Christmas dinner. Donations will be accepted the week of December 7th and the dinners distributed Saturday, December 12, 2020.
| If you have an interest in participating in this event contact Nora Trueblood at 800.475.5863 or if you would like to donate, click here. Donate |
About Allen Lund Company:
Specializing as a national third-party transportation broker with nationwide offices and over 550 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 Food Logistics magazine as a 2019 Top 3PL & Cold Storage Provider for TransKool Solutions, 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 allenlund.com
By Steve Hull, Manager, ALC, Portland
What a strange year it’s been so far in 2020, with so many changes and challenges in the perishables space! One item, that could greatly affect the business models and proprietary information of grower/shippers, has gone under the radar.
In a nutshell, a minority of motor carriers and carrier trade associations (such as OOIDA) are pushing the Federal Motor Carrier Safety Administration (FMCSA) to update the terms and enforcement of an existing section of federal code relating to freight costs paid between grower/shippers, brokers, and carriers. 49 CFR 371.3(c) was initially written back in the days of deregulation in 1980, and requires brokers to allow carriers to view the rates paid by the transportation buyer to the broker.
In practical terms, however, carriers have rarely asked to view that information. The majority of renewed interest in the regulation came about in Q2 of this year. Coinciding with historically low shipping volumes nationwide, normal supply and demand market forces caused a sharp fall in freight rates to carriers. Basically, a lack of supply (not as many available loads) caused a decrease in demand (lower freight rates). Carriers in turn, wrongly accused brokers of price gouging and other unscrupulous business tactics.
How does this all apply to grower/shippers? Just like forklifts, pallets, and packing material – the linehaul freight cost of getting your goods to your customer is something you purchase out of your operational budget. When the code was written back in the 80’s, it was more normal for carriers to pay a ‘commission’ to the broker. But now, the way most freight transactions occur has changed.
Per an article about this topic on Overdrive Online, Jason Craig, of C.H. Robinson stated on a recent listening session with the FMCSA, many brokers treat the contracts with shippers and carriers, as “separate transactions” and that “the price paid by the shipper does not affect the price paid to the carrier any longer.”
If changes are made to the code, the proprietary pricing you pay to a broker could be mandated to be given to a motor carrier. For every load. In essence, your buying power and negotiated pricing would be laid bare for all to see.
An important point as well, you could be barred from inserting language into any shipper-broker contract to keep your pricing from being disclosed. A dire scenario would be one that causes you to change your business practices.
You could even decide to end yearly, or quarterly, RFPs to brokers! All because a few carriers didn’t like the rates they were being offered by some brokers for a few weeks in early 2020. (And to get you up to speed on rates in Q3 and Q4, per DAT, there are many lanes that are seeing record high truck rates being paid to carriers.)
What can you do? You can read up on these broker carrier issues here. And more importantly, FMCSA is still accepting comments from anyone interested in voicing their opinion. The comment period is open until November 18, 2020.
You can use this link to submit your thoughts, comments, and concerns. You can also reach out to your freight broker, to discuss how any changes would affect your specific business.
Steve Hull is manager of the Portland office and has been with the Allen Lund Company for 24 years. Hull is a graduate of the University of Southern California completing a dual major in political science and U.S. history.
By Veronica Marshall
Broker’s Assistant, ALC Boston
Everyday there are millions of drivers on the road in the U.S. Unfortunately many of these drivers see or experience the dangers of driving while fatigued.
We have to take responsibility for our own actions. If we feel tired but think we could go another five miles or so, don’t do it. Some people are unaware of how tired they are and begin to fall asleep behind the wheel.
Truck drivers do not sleep enough for the amount of work that they do, making them more likely to have accidents late at night or early in the morning. That is why it is best for all drivers to get adequate rest and be aware of their lethargies.
Truck driving is a popular industry and can become competitive. It is important for us to remember that the safety of everyone on the road is our top priority.
Can you imagine if all our truck drivers were tired, set the wrong temperature or crashed and never made it to their destinations? Not only is being alert important for driving but you also need to be attentive to temperature controls, especially with refrigerated freight.
The produce cannot be too cold or hot during the trip. Every product, especially produce, is different when it comes to temperature requirements. The products have a limited time to stay fresh in our trucks, which is why we must be vigilant.
If deliveries are late, the integrity of the produce could begin to deteriorate. With everything going on in the world today we need our produce delivered in the shape that it was picked up in. This is why truck drivers need to be alert and attentive when transporting produce.
Here are some tips on how to remain alert and attentive while driving:
- Ensure you are getting adequate sleep on a daily basis.
- Avoid alcohol and drugs.
- Avoid taking medications that may cause drowsiness.
- Be aware of warning signs to know when you should take a break. Warning signs can include frequent yawning, eyelids feeling heavy, blurred vision, inability to concentrate, feeling your head start to tilt or fall to one side.
Overall, its is important for all truck drivers to sleep well before long hauls, follow hours of service regulations, and recognize and acknowledge feelings of fatigue. If needed, find a rest stop or safe place to pull over and rest. The safety of truck drivers and other drivers on the road is a top priority.
Veronica Marshall began working for the Allen Lund Company in April of 2019, as a broker’s assistant for the Boston office. Marshall earned a degree in accounting from the University of Massachusetts Boston.
By Kelly Miller, Assistant Manager, ALC Los Angeles
There is so much uncertainty surrounding this pandemic, we are bound to see impacts on our food system and the supply and demand of fresh produce. Growers, packers, processors, transportation and shipping are some of the industries that have been affected. Halts and delays due to insufficient labor in the fields will cause dwell times to increase for drivers and ultimately delay transportation to stores as well as price hikes and availability of products. Tom Stenzel, CEO of The United Fresh Produce Association, estimates that the produce industry will take a $5 billion dollar hit from the Covid-19 outbreak. Stenzel stated that “restaurants and other foodservice outlets account for as much as 40% of fresh fruit and vegetable sales” and it’s unfathomable to be shifting that amount to retail outlets.
So far, we have not seen a shortage of produce in our stores which is great for consumers. Many people are looking to increase their consumption of fresh fruits and vegetables hoping to boost their immune systems in order to stay healthy and combat this virus. Behind the scenes, industry members are dealing with logistical complications like making sure the labor force in the fields, packing houses and stores are safe and employees are able to work.
In the transportation industry, there is a growing concern for driver shortages due to health issues as well as limited resources out on the road. Many rest stops have been closed which means limited bathroom or shower availability. These are just a few challenges that drivers are facing and some have even decided to retire early due to the pandemic. I don’t know about you, but I would not want to work without these necessities.
I would personally like to take the time to thank all the essential workers. Drivers, growers, manufacturers, grocery store employees and the healthcare workers for they are the heroes in this pandemic!
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Kelly Miller began working for the Allen Lund Company in October of 2001. She started her career as a transportation broker, was promoted to operations manager and now is the assistant manager of the Los Angeles Sales office.
By Nora Trueblood
We have been inundated with information, some mostly correct, some not, specific to COVID-19. I don’t know about you, but I am quite exhausted by it all. Every one of us is on a different journey because of the pandemic, and I personally continue to recognize that a person’s opinion is just that…their opinion. I do think it is safe to say, that we are all trying to manage and figure out our own journey through life as we deal with COVID-19.
Keeping it Fresh is distributed to many of our perishable/produce customers, and I wanted to take the opportunity in this issue to bring to your attention some of the great philanthropy that is taking place during this crazy time. Many of these growers/shippers work with the Allen Lund Company in everyday business, but many also donate food to Navidad en el Barrio, a project that has existed since 1972, and one that ALC has supported since 2004.
So, a hearty thank you from the Allen Lund Company and the recipients of these generous donations to:
- The Wonderful Company Donates 1.6 Million Halos Mandarins
- Grimmway Donates Truckloads of Carrots During Pandemic
- Rainier Fruit, with T&G Global, Donate Apples to Local Schools Amid Quarantine
- Tanimura & Antle Supplies HarvestSelect Boxes to Retailers
- Dole Food Company gives 2.2 Million Pounds of Fresh Produce to Communities in Need
We still have quite a road ahead, and we wish all of our industry friends the best as we maneuver through our current challenges.
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Nora Trueblood is Director of Marketing and Communications, Allen Lund Company Corporate of La Canada, CA. She began her career with ALC in 2002 as Director of Marketing & Communications. Prior to joining the company, Trueblood worked as the event manager with the Montrose Arts Council and Alpine Dance in Montrose, CO, had her own production and event planning company and spent 7 years with Lorimar Television.
By Derek Robinson
If you ask any truck driver out there, especially produce drivers, what is one of the biggest headaches they face each and every day you will end up with a resounding answer across the room…”Hours of service!”
A truck driver has always needed to be part mechanic, dispatcher, and accountant but with the HOS in place today they need to be part calculus professor as well. At least that is the way it seems when you look at ELD’s or log books and work out all of the math and hope a DOT inspector does not find a mistake while he is looking over your shoulder.
Since perishable shippers rely on reefer service, September 29th will be a great day. Drivers will be given a little more control of their destiny, and shippers will have more open windows for pick up and deliveries. The Federal Motor Carrier Safety Administration (FMCSA) listened to owner operators, carriers and fleet managers and are offering more flexibility while maintaining the highest safety standards. What does this mean for drivers?
Short-Haul Exception: The maximum allowable workday is changing from 12 to 14 hours and the distance is extending from 100 air-mile radius to 150 air-mile radius. As any produce driver out there knows when it comes to multiple sheds, this will be a major benefit!
Adverse Driving Conditions Exception: This can extend the duty day by two hours if adverse driving conditions are encountered. Snow, ice, sleet, fog or unusual road or traffic conditions that were not known prior to beginning the duty day or immediately before beginning driving after a qualifying rest break or sleeper berth period, or immediately prior to dispatching the driver.
If you are subject to a 30-minute break requirement: This requirement can now be satisfied by taking an on-duty, not driving break, in addition to an off-duty break. After an 8-hour driving period there will be a few options, including combination of activities as long as the 30 minutes are consecutive and satisfied by time. These options include: off-duty; in sleeper berth; and off-duty, not driving.
Sleeper Berth Provision: This allows drivers to split the 10-hour off duty period after meeting certain requirements: One period is at least 2 hours long, the other involves at least 7 consecutive hours in the sleeper berth, both must add to at least 10 hours. When paired together, neither period will count against the 14-hour driving window. An 8-hour sleeper berth period by itself can no longer be excluded from the 14-hour driving window.
To all of our produce professionals out there, here is to putting the drivers and shippers back in the driver’s seat! September 29th cannot come fast enough.
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Derek Robinson is a business development specialist in the Savannah office and has been with the Allen Lund Company since 2015. Robinson attended Savannah Technical College, specializing in Aviation Structural Mechanics.
By Jennifer Brearley Transportation Broker, ALC Richmond
In Tuesday’s article, we discussed some of the most important things to consider when selecting a carrier for sensitive, refrigerated loads. In addition to carrier vetting, it is also crucial to ensure that hot product is not being loaded into the trailer and equipment failure or human error are avoided. Below are some tips that could help you steer clear of these issues leading to rejected loads and claims.
Prevent hot loads before they get on the truck.
- Refer trailers are not designed to set product temperature. They are designed to maintain it.
- Freshly picked loads that sit on the dock in extreme heat waiting to be loaded may be out of temperature tolerance at loading. According to the article, The Keys to Preventing Rejected Loads in Refrigerated Transportation, “as much as 32% of all cargo is loaded at the wrong temperature. Poor loading practices like these can result in loads spoiling in transit if the temperature is incorrect. No matter how chilled the reefer is, the temperature is going to rise – this causes condensation, which results in spoilage.”
- Ensure the driver understands proper pulping practices. Prior to loading, and during unloading drivers should pulp and record temperatures of at least every other pallet of the product loaded on to their trailer.
- Drivers should be instructed not to accept the warm products at the shipper. Once they sign for it, they are responsible for it.
- Document all communication with the driver and the shipper regarding temperature discrepancies prior to loading.
- In transit pulping when possible is preferred as well. Newer refrigerated trailers have advanced temperature monitoring that will notify the driver and dispatch if something is wrong which is helpful in today’s world where most loads are sealed.
Avoid equipment failure and human error.
- Proper routine maintenance is a must. Loading an unknown carrier with a sensitive product is a huge risk. The vast majority of loads hauled pick up and deliver without incident. A temperature claim resulting from poorly maintained equipment will result in unrecoverable costs and damaged relationships. Ask drivers you are unfamiliar with about their maintenance routines. You will be able to tell pretty quickly how diligent they are about it. There are up to 200 possible alarm codes in newer reefer units. That can be 200 potential problems. Add to that a damaged chute, leaking trailer, or damaged seal and the risk of loss multiplies.
- Incorrect unit settings can happen for a number of reasons. Human errors can result in a ruined load. -20°F instead of 20°F are vastly different and such errors result in a disaster for the cargo inside the trailer. Regular communication from pick up through delivery is crucial. It is easy to assume that the temperature today is the same as it was yesterday. This is a dangerous assumption.
Educate yourself on the products your customer ships, the methods the shipper utilizes for loading trucks, and the general function of refrigerated trailers. This is the most important part of the vetting process. In order to effectively communicate with the carrier, you have to know what you are talking about.
Rejected loads are undoubtedly something we want to avoid. While these vetting processes may not prevent every rejected load, they can certainly help to lower if not eliminate the avoidable ones. (Part I was published on July 28th.)
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Jennifer Brearley began working for the Allen Lund Company in February of 2019 as a transportation broker. She joined the company with five years of domestic and international shipping experience. Brearley attended Western Governors University and received a BA in Interdisciplinary Studies.
It’s the middle of summer and 97° here in Virginia and throughout the country. The summer demand for refrigerated fresh products under tight deadlines is at its peak. Allen Lund Company specializes in moving this type of product, successfully transporting thousands of produce loads a year. But, what happens when your load is rejected? This is one of the most frustrating challenges in refrigerated transportation. Rejected loads can lead to insurance claims, contract loss, and a damaged reputation.
How can we prevent avoidable cases of rejected loads and the claims associated with them?
Vet the carriers and drivers moving the loads. Allen Lund Company’s database employs a rigorous vetting process. There is a wealth of resources available when choosing a carrier to represent you.
- Verify that the chosen carrier has reefer breakdown AND spoilage coverage on their policy.
- Seek product exclusions from the carrier’s insurance company.
- Refer to internal notes regarding the carrier’s communication practices, past performance, and on-time percentage. A late perishable load rarely works out well.
- Consider known history the carrier has moving refrigerated product.
- Ask the potential carrier/driver the right questions. Verify that they are experienced in moving temperature-sensitive products.
- Trust but verify. You will come across the good, the bad, and the ugly. Take it all into account when considering whether to do business with a carrier.
In addition to ensuring that you entrust your load with the right carrier, it is also important to prevent hot loads before they get on the truck as well as avoid equipment failure and human error. On Tuesday, August 4 in Keeping it Fresh article, we will continue to discuss the best ways to avoid these problems and guarantee your refrigerated load makes it to the final destination unharmed.
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Jennifer Brearley began working for the Allen Lund Company in February of 2019 as a transportation broker. She joined the company with five years of domestic and international shipping experience. Brearley attended Western Governors University and received a BA in Interdisciplinary Studies.