Posts Tagged “avocados”
A mild winter, great spring and increasing produce volume is gradually 
increasing demand for refrigerated equipment in several areas of the country. This is resulting in rising freight rates, although higher diesel fuel prices is certainly putting a damper on many truckers getting too excited about these changes.
In Florida, we’ve seen rate increases of 10 to 15 percent in the past week as volume continues to build for spring vegetables, and red potatoes. Watermelon shipments are underway, but we’re another week or so away from good volume.
In southeast Georgia, light shipments of Vidalia onions are occurring, but decent volume won’t hit until around April 15th.
On the West coast, we’re seeing a few more $7000 freight rates to New York City and Boston, but the majority of rates remain a few hundred dollars less. But this is an indicator of what’s coming as volume continues to build from Southern California, the San Joaquin Valley as well as the Salinas area.
Mexican vegetables, melons and mangos crossing the border at Nogales, AZ are showing small rate increases as this area enters it’s final peak volume month for shipments.
I keep hearing about shortages of equipment for hauling sweet potatoes out of eastern areas of North Carolina, but there seems to be no increases in the freight rates. Could there be a correlation? Duh!
North Carolina sweet potatoes – grossing about $2250 to Chicago.
Southern California, avocados, berries, etc – about $6800 to New York City.
Nogales vegetables – about $5800 to Philadelphia.
South Florida veggies – about $3600 to Boston
Volume and shipments continue to seasonally build in California, resulting in 
more demand for refrigerated equipment. This means rising freight rates, which have increased five to 10 percent and more recently.
There will be huge increase in avocado shipments this year — as much as 25 percent more out of Southern California. Cinco de Mayo, the Mexican festival widely celebrated in the U.S. May 5 will mean big shipments of the fruit. The amount of avocados shipped to U.S. markets with be split about evenly from those loaded in California, and with avocado border crossings from Mexico. Southern California also will be loading berries and citrus.
Various types of lettuce shipments are increasing from the Huron District in the San Joaquin Valley. Broccoli and cauliflower loadings have started from the Salinas Valley. Light volume with strawberries, broccoli and cauliflower has got underway from Santa Maria.
There have actually been a few $7000 freight rates from California to the East Coast. It’s going to be interesting in another month of so to see how high freight rates have risen as produce volume and demand for refrigerated equipment builds.
Southern California produce – grossing about $6700 to Boston.
NOTE: Cinco de Mayo is a celebration of a much smaller, less trained Mexican military unit that defeated the French in battle in 1862.
Avocados should be one of the best buys in your local produce department as produce continues to arrive from Mexico and will continue to do so into May. 
There’s also Chilean avocados which will be on retail shelves into late March. California avocados also are available and will continue well after the imported fruit is no longer available — into September. Even when California has sole possession of the market, prices should remain reasonable. The state expects to produce as much as 415 million pounds of avocados this season, 25 percent more than a year ago.
During the last quarter of 2011 the cost of fresh fruits and vegetables actually declined overall by eight percent, but we may not have necessarily have seen the benefits in our retail stores. Why? A major reason is the cost of fuel keeps rising to get the product delivered.
That means you may not have noticed the savings, for example, with oranges which had an average price of 93 cents per pound in January, compared to 98 cents per pound in December. Another example are tomatoes, which were costing on average $1.54 per pound in January, down a penny from December, but off five cents from the same time a year ago.
Produce shipments out of Southern California are entering decent volume for 
strawberries, but avocado loadings will be limited for awhile. Better weather conditions compared to a year ago have strawberries loadings more than double over 2011 volume. About 25 to 30 percent of California’s total strawberry shipments come from Ventura County and south. Overall, California is forecast to ship 176 million trays of strawberries this year.
As for avocados, Californa expects to move nearly 400 million trays. Loading opportunities from California have been less than normal as many West Coast shippers are holding onto product waiting for big volumes from Mexico and Chile to subside. Expect significant increases in California avocado shipments come April.
From the Bakersfield area, there’s about 300 truckload equivalents of carrots being shipped weekly….There also is fair volume with items such as lettuce, celery, cauliflower and broccoli being loaded from the Coachella and Imperial valleys of the California desert.
Southern California berries, citrus is grossing about $5500 to New York City.
Imperial Valley veggies – about $3600 to Chicago.