Posts Tagged “California”
Since a significant rise in early June of rates for hauling fresh produce from some major shipping areas — particuarly the west coast, it has been a pretty quiet summer as rates have remained relatively stable, and few serious truck shortages have occurred.
While some produce items may have record shipments this year, such as California grapes and Washington state cherries, other areas ranging from Michigan fruit to South Texas vegetables, as well as California stone fruit, have taken some hits from the weather. I’m sure there may be other factors involved ranging from more contract rates, which tend to provide more rate stability on a seasonal, if not a year around basis. The struggling economy, with a lot of pitfully low rates for dry freight, may have more carriers seeking higher paying produce loads, particularly this time of the year.
Nationally, here’s a glimpse at loading opportunities for fresh fruits and vegetables.
South Carolina peaches are still being shipped , primarily in an area located south and southeast of Columbia stretching to the Georgia state line. Speaking of Georgia, peach loadings are on their last leg and should be finished within a week as the latter part of the season had exceptionally light production. South Carolina won’t be far behind.
In South Texas, various citrus, tropical fruits and vegetables from Mexico continue crossing the border into the Lone Star State. They join lesser amounts of produce grown and shipped from the Lower Rio Grande Valley.
Southern New Mexico continues to ship onions…..In Michigan, blueberries and various vegetables such as cucumbers and squash are providing loads.
In Idaho, the country’s largest potato shipper continues to provide hauls from the 2011-12 harvest. New product should become available for hauling next month.
In the Columbia Basin of Washington state, potato and onion loads remain available. An excellent crop of sweet cherries are now coming out of Washington’s Yakima and Wenachee valleys, along with late season apples. Shipments of Washington pears are virtually finished.
In California, the vast majority of produce shipments are now coming from shipping areas north of Interstate 10.
Salinas Valley vegetables are generally grossing – about $7700 to New York City.
Washington states potatoes and onions from the Columbia Basin – about $3000 to Chicago.
South Carolina peaches – about $3400 to Boston.
Georgia peaches – $3300 to New York City.
During some summers when produce shipments are in peak volume, so much product needs to be moved, and the demand for refrigerated equipment is so great, that already high rates then go through roof. It certainly has not happened this summer, and if anything, produce rates declined leading up to the Fourth of July holiday. The Fourth, being on a Wednesday, is felt by some to lessening the impact on rates.
Rates from major some shipping areas, for example in California, dropped 5 to 10 percent and more from the San Joaquin Valley, Salinas Valley, and Santa Maria.
A number of factors apparently resulted in the lower, although still healthy produce rates. For example, stone fruit shipments out of the San Joaquin Valley are down this year, freeing up some equipment. Other areas are shipping a lot less produce than normal such as Michigan (with fruit) and many Southeastern (watermelons, bluesberries and vegetables) states and in the South (Texas watermelons and melons in loutheastern states).
Still, the heaviest produce volume, on a national basis, usually occurs between May and August – and that still holds true this year.
In California, table grape shipments are winding down in the Coachella Valley, but the big volume is yet to come – from the San Joaquin Valley. Grapes have started from the Arvin (Bakersfield) district….The Salinas Valley remains heavy with vegetables shipments.
Southeastern Arkansas is in peak loadings with tomatoes.
Kentucky and Tennessee are now shipping tomatoes, zucchi, strawberries and peppers. Most shipments are on a regional basis.
Although we usually don’t think too much about ports and imported produce this time of year, various ports around the U.S. are receiving summer citrus. for example, there are arrivals of navel oranges from Peru. There is various types of citrus arriving from South Africa, Argentina, and Uruguay.
San Joaquin Valley fruit and vegetables – grossing about $7,500 to New York City.
South Texas watermelons – $3000 to Chicago.
The strong, but seasonal produce trucking rates off the West Coast sound pretty good, until one starts to consider what it takes to get a Westbound freight haul. The hard economic times in the USA has taken its toll on many truckers. Some in trucking report dry freight grossing as little as $2000 from the Mid-west to California.
Bradley Cook drives a truck for Frank’s Transport, a one-truck operation out of North Miami Beach, FL. HaulProduce.com recently caught up with him at a Flying J Truck Stop, after delivering a load of juice. He was hoping to get a load of freight out of Tulsa, OK for the West Coast to pick up a load of produce.
The 35-year-old has been trucking either long haul or locally since 1998, and this is about as tough as he has seen it.
“I’m working this truck like a dog trying to make ends meets,” he says, pointing to the conventional Peterbilt he is driving. The owner operator he is driving for once had three trucks, but now it is down this single tractor.
It is not easy when outbound dry freight is paying only $1.35 to $1.40 per mile, while eastbound produce loads are grossing about $2.25 per mile, “if you are lucky. The people paying for the East bound (produce) want to pay you the Westbound rates,” he says, “although they pay the better rates because they have little choice.”
It also does not help that other produce shipping areas often do not pay that well. He cites per mile rates of out of Florida being $1.25, while Texas loads are averaging about $1.50 per mile. The high cost of number 2 diesel fuel only makes it worse.
“The price of fuel is so high the produce people and everyone else are relying on the freight charges of 20 years to help make up for it (cost of deliveries),” Bradley says.
Adding to the challenges of hauling produce are the delays in loading and unloading the often occur.
“With produce, I often face delays anywhere from one to eight hours. The product may still be in fields, even though I’m at the facility on time to load,” Bradley states. “I am picking up in California and supposed to deliver in Massachusetts. If I am late for delivery (because of loading delays), that Massachusetts receiver will not pay full price for that load upon arrival.”
Another primary “beef” with Bradley is dealing with four wheelers, and particularly those driving cars who cut off big rigs.
If a wheeler cuts me off then hits the brakes, I’m going to hit my brakes, but I can’t stop on a dime. I’ll end up going five truck lengths through that guy’s vehicle,” Bradely states.
In some Western states he notes speed limits on some highways are 80 mph. “You can cut me off, and I’m going to end up killing you (with my truck, which can’t stop),” he says.
Bradley believes as part of obtaining a driver’s license four wheelers should have to ride in big rig for three weeks to get a better understanding of what it is like to operate an 18 wheeler and “experience the centrifical forces of nature.”
Similar problems exist with four wheelers who tail gate big rigs and when the trucker hits the brakes, if the other driver is not paying close enough attention he can end up “going through your DOT approved trailer bumper — and die.”
Normally we would see a bump in rates for hauling produce as the Fourth of July holiday approaches – when Independence Day falls on any day but Wednesday. This is not to say there will not be a increase in produce rates, but some observers are saying it may not be as high, or may not even occur this year for the holiday. Regardless, strong demand for refrigerated equipment will continue before and after the Fourth, and rates are expected to remain healthy in the coming weeks.
In Southeastern Arkansas, peak tomato shipments are continuing. While it has been an excellent growing season, triple digit temperatures have moved in. If the extreme heat continues the mid July conclusion to tomato shipments may happen even before that.
In Virginia, some are not aware the state ranks fourth nationally in tomato shipments, and 6th nationally in potato, apple and snap bean volume.
Moving to the Northwest, Washington state cherry shipments are in heavy volume. Loadings should continue until September and the state is on a course for record shipments.
In California, rates have had only minor fluctuations since early June. The Salinas Valley has lighter than usual volume with broccoli and cauliflower, plus lettuce shipments have been hampered as East Coast receivers took advantage of coastal shipping areas such as New Jersey, which started weeks earlier than normal. This put Eastern lettuce shipments on a collision coarse with West Coast lettuce shipments. Eastern receivers could save $7 to $8 per carton on lettuce, just on shipping costs, when they purchased eastern lettuce as opposed to that product from California.
Salinas Valley vegetables – grossing about $8500 to New York City
Refrigerated equipment is in tight supply in a number of areas around the country, but it could be much worse. Less than bumper sized crops in several areas is easing some of the pressure for trucks. California’s San Joaquin Valley stone fruit crop is down from a year ago. Central and southern Georgia fruits and vegetables were hit hard by inclement weather during the spring. Watermelons in Texas and some parts of the east coast were also victims of bad weather.
The new apple season will be launched in only a few weeks and crops were decimated in Michigan, Ontario and parts of New York state.
Thus, when folks complain about California rates hitting $6,000 to the Mid-west and $9,000 to the East Coast, with a little more favorable weather conditions in various parts of the USA and Canada, demand for refrigerated equipment could have been worse – resulting in even higher rates on produce hauls. Still, there comes a point when rates reach a certain point, that retail prices for fruits and vegetables rise, and at a certain there is consumer resistance to high the costs.
Whether talking availablity of equipment, volume of fruits and vegetables, as well as the quality of the product — and let’s not forget the availability of professional drivers – many factors can result in the final equasion for supply and demand….If and when this economy ever turns around, produce shipments will be receiving a lot more competition as many drivers will choose to haul other things, which is not as demanding and risky as loads of fresh produce.
Southern Californa citrus and fruit – grossing about $9000 to Boston, sometimes more.
Salinas Valley vegetables and berries – about $6200 to Chicago.
Remember when Wal-Mart introduced produce departments to their stores a number of years ago. They did an excellent job! You can thank a guy named Bruce Peterson for that. Anyway, Bruce left the huge chain a while back and Wal-Mart produce departments, at least in many stores, have went down hill. My local Wal-Mart often has substandard produce, and definately not enough staff to keep the shelves stocked properly, not only in produce, but in the grocery and other departments as well.
Anyway, I just bought my first peaches of the season at my local Wal-Mart. I purposely bought peaches from California, as well as – honestly I’m not sure where the 2nd peaches are from. The shipper is based in South Carolina, but he may be selling some peaches for growers in Georgia. The label didn’t say in which state the peaches were grown.
I would give the California peaches a “C” and the Eastern peaches a “C-minus.” The West Coast peaches had excess juice, which really tasted more like water. The East Coast peaches were seriously lacking in juice. Peaches from both California and South Carolina, or is it Georgia, were dry.
Looking at the photograph I took of a peach from California (on the right) and the East Coast peach (on the left), both have nice color, although both are lacking in size. Just goes to show, as Bo Diddley once sang, you can’t always judge a book by looking at the cover. Hopefully, both coasts will have better peach quality in coming days.
Since California rates shot upward on June 4th by $1000 dollars or more from California to the midwest and east coast, rates have pretty much maintained that level (around $6000 to Chicago and about $9000 to the east coast). Now the question is whether loads for the 4th of July holiday will take another jump. Since the 4th falls on a Wednesday, there are differing opinions whether rates will go any higher, as opposed to if the holiday fell on, say a Monday or a Friday, making for a long holiday weekend.
In California’s Westside District of the San Joaquin Valley, cantaloupe and honeydew shipments will be starting around Independence Day. Normal shipments are expected, although there’s plenty of apprehension among some melon shippers over the ramifications of the cantaloupe listeria outbreak last year with Rocky Ford region cantaloupe in Colorado. That outbreak adversely affected cantaloupe shipments for other production areas as many consumers stopped buying melons.
In Southern California, record shipments of avocados continue. The region is shipping about 30 million pounds of avocados weekly to points around the USA, with a total for the season expected to hit 415 million pounds!….California cherry loads from the Lodi-Stockton area will be winding down within the next week or so, which will end with a record of around 23 million boxes, up 3 million boxes from the amount shipped a year ago.
Meanwhile, there’s heavy volume with vegetables coming out of the Salinas Valley, and increasing stone fruit shipments from the San Joaquin Valley.
San Joaquin Valley stone fruit – about $5500 to Chicago.
Salinas Valley vegetables/Watsonville strawberries – around $9200 to Boston, and can be a few hundred dollars higher or lower depending upon the day of the week, demand for trucks, etc.
We are quickly approaching time for shipments of produce for the Fourth of July holiday. Since Independence Day falls on a Wednesday, a lot of consumers will only have that one day off work, although many do tie extra days off around the holiday.
But to help you try and plan your schedule so you can be home for the holiday, here’s a look at some shipping areas that will be pretty active a week or so before the Fourth, hopefully increasing your chances for faster loadings, transits and getting to your destination.
In the West, the Watsonville district will be the only California area shipping strawberries, but it good volume. The nearby Salinas Valley should be rockin’ with plenty of vegetable loads. The same goes for the San Joaquin Valley shipping stone fruit and vegetables.
In Washington, the eastern part of the state has moderate volume with blueberries, but better volume will be coming from Yakima and Wenatchee with late season apples from storage, as well as with cherries, with loadings at a peak.
At Nogales, watermelons from Mexico crossing the border have more than doubled over the past decade. Yet, loading opportunities are being limited, depending upon with whom one talks, because of the escalating drug cartel violence south of the border.
In Michigan, decent blueberry shipments are expected for the Fourth of July, plus vegetable volume is increasing.
New Jersey blueberry shipments will be supplying most Eastern markets for Independence Day. The state also is shipping vegetables.
In the Southeast, Georgia continues with Vidalia onions, Ft. Valley area peaches and vegetables from the central and southern part of the state.
Overall Florida produce shipments are down subtantailly by this time of the year, but Belle Glade is shipping a lot of sweet corn.
California rates to the East Coast topped $9000 this week, at least from the Salinas Valley, where vegetable volume is really cranking up, plus there is building volume with the nearby Watsonville district strawberries and other berries. Rates also have increased from other regions of California, ranging from the San Joaquin Valley, to Santa Maria and in the Southern part of the state. Truck supplies have definately tightened up, but so far, my sources are reporting you can get a truck, if you’re willing to pay for it.
In Arizona, rates remain strong as Mexican melons and table grapes are moving in good volume across the border into the USA.
If for some reason, you are stuck in New Mexico, the new crop of storage onions from the Southern part of the state are now being shipped. Rates are usually less on onions with a significant factor being you can haul them on flatbeds and other non-refrigerated equipment.
Texas remains active for produce loads, in large part thanks to Mexico. There are a variety of Mexican vegetables and tropical fruit crossing into South Texas. The Lower Rio Grande Valley is shipping watermelons, although weather troubles has reduced loading opportunities there. The Winter Garden District, just south of San Antonio is loading onions.
Salinas Valley vegetables, Watsonville berries – grossing about $9000 and more to Boston.
San Joaquin Valley stone fruit – about $4000 to Atlanta.
Nogales melons and grapes – about $5000 to Chicago.
New Mexico onions – $3000 to Chicago.
Texas produce – $3000 to Atlanta.