Posts Tagged “California”
I arrived in Chicago yesterday (June 4) and the talk both with people in trucking and in the produce industry was the rates had shot up $1,000 on 
loads from California to Chicago. There sure was a lot of complaining from produce companies, but big smiles on the folks in transportation. It should come as no surprise to anyone. It happens around June 1st every year as produce spring shipments increase and refrigerated equipment comes into short supply, although trucks seemed to be available, if you were willing the pay the price.
The down side to the rising produce rates, is, as every year, the westbound dry freight rate are awful. Dry freight from Chicago and the Midwest is grossing only $2400 to $2500 to the West Coast — and some of it is even cheaper. That may pay for the number 2 diesel, but it’s not going to cover the cost of the driver, or the truck.
Another downside is be wary of companies with which you may not be familiar. Some receivers will look for any little thing to make a deduction from your load. I’m talking about things as petty, for example, as the product in your trailer being one degree off the recommended pulp temperture. That $1000 extra you thought you were making with the rising rates, isn’t going to look near as good when you are paid, if you face a deduction of $200, $300, $400 or more.
As of today, here’s what some loads are paying coming into Chicago.
From California to Chicago:
6 pick ups, five drops, grossing $7,000
5 pick ups, one drop, grossing $6400 (Think I’d take the next load instead, see the next one listed!)
Fresno, 1 pick up, 1 drop $6400
Nogales melons and grapes – $5000 to Chicago
West Texas (90 miles north of Laredo), potatoes – $2400 to $2500 to Chicago.
By Bill Martin
Special thanks to Eclipse Dist., Elburn, IL for the rate information.
Central Florida potatoes – $3000 to Chicago.
Supplies of refrigerated trucking equipment continue to tighten as spring 
produce volume continues to increase, and is being reflected in rates, which are rising.
The pressure to increased rates on produce loads, as usual, is being led by California. More specifically, the San Joaquin and Salinas valleys continue to build in volume. In the San Joqauin Valley, even though an April hail storm knocked out about 15 percent of the stone fruit crop, there will still be around 40 million boxes of peaches, plums and nectarines for hauling this season. The valley also has a lot of vegetables, which doesn’t even include grape shipments that won’t begin until July.
In New Mexico, one normally doesn’t think of produce loads. But if you are in the area, onion shipments are in light volume the Hatch (Las Cruces) area.
Peach shipments from the Ft. Valley, GA area are moving in decent volume, although loadings for the overall season are forecast to be down about one-third. Shipments are expected to finish in late July, a couple of weeks earlier than normal…..South Carolina peach shipments have started and should continue into August.
Georgia peaches – grossing about $2600 to Baltimore.
$8000-plus loads from Salinas to New York City are becoming more common.
Buying two of my favorite fruits with any good taste has been a real challenge t
his year — until this week.
Finally had some cantaloupe from Costa Rica that was out of sight! I know when my cantaloupe is tasting as it should when I don’t have to sprinkle salt on it.
My next pleasant surprise came with California strawberries. I had began to think I’d just grown tired of eating strawberries, until this week. What finally hit me was I’d just grown weary of fruit lacking in taste. You’d cut one open and it there was more white color than red. This quart of clamshell strawberries also wasn’t detriorating. Lately it seemed I have to eat the whole quart at once because the next day, the fruit was be going to “crap.” I’ve had these strawberries at the house three days and they remain firm, tasty, with a beautiful red color — and no decay.
Maybe, they finally realized they should have been shipping it protected by Tectrol, which slows the aging process.
Another one of my favorites are watermelons. I often find it difficult to buy great tasting melons until around the 4th of July. You get all the early season stuff out of the way, and warmer, more consistent weather helps produce better watermelons.
Expect watermelon retail prices to be pretty stiff, especially in the eastern half of the USA. For various reasons, melon crops have been hit pretty hard and supplies will be much tighter than normal. Out West, supplies are much better and you may not face as much stick shock.
Supplies of refrigerated equipment from shipping areas c0ast-to-coast 
continue to tighten as seasonal fresh fruit and vegetable volume rises. The result is buyers of produce are being forced to pay higher freight rates and truckers now have the upper hand in rate negotiations.
Truck supplies are especially short in California, Nogales, South Texas and in Florida.
The truck supply situation will continue, and worsen, after Memorial Day as receivers replenish supplies.
California hasn’t even got cranked up yet with produce shipments, although they are certainly getting there. If you are a produce hauler, let the good times roll.
The week of May 21st there were already a few loads out Southern California, Santa Maria, as well as the Salinas and San Joaquin valleys topping $8000 to places like New York and Boston.
In Arizona, rates for Mexican grapes crossing the border at Nogales, increased the past week by double digits. The most extreme example was a 30-plus percent hike in rates to Dallas.
Speaking of Texas, strong demand for reefer loads out of the Lower Rio Grande Valley continues. There’s a lot of watermelons and other Mexican fruits and veggies coming into the USA.
In Florida, rates have been all over the board — especially for hauling red potatoes. If you hit it right when truck supplies are really short, you could gross $2000 MORE on a load to the Northeast. Most of the state’s watermelon shipments are coming from areas north of Orlando, with shipments now coming from Georgia.
Salinas Valley vegetables- grossing about $8200 to Boston with some loads higher.
Mexican grapes from Nogales – about $3400 to Dallas.
South Texas produce – about $5500 to Boston.
Florida potatoes – anywhere from $3000 to $5000 to New York.
Vince King has been trucking since 1978 hauling dairy products, frozen 
chickens and fresh produce. He loves hauling refrigerated freight, but dislikes trucking in California and the attitudes of many drivers.
A resident of Cuba, NY, located near Buffalo, HaulProduce caught up recently with Vince at the Pilot Truck Stop at Warner Robins, GA. “I haul dairy, chickens and produce — it really doesn’t matter to me which one. The only difference is setting the temperature (on the reefer unit) right for the different loads. I’ve grown to love that reefer unit over the years that’s behind my truck,” he relates.
Vince drives a 2009 blue Freightliner housing a 470 h.p. Detroit, equipped with a 13-speed transmission. He pulls a 53-foot Utililty trailer with a Thermo King unit.
“I love this truck. My boss asked me what I wanted and what color. My previous truck was a 2004 black Freight, says, Vince, who drives for Sargent Transportation Lines Inc. of Cuba, a small fleet with 20 over-the-road trucks. “The money is good and they keep me hopping or I wouldn’t still be here.”
Vince, who has been with Sargent 16 years, had just delivered dairy product in Florida the previous day, which had three drops. He was on his way to pick up frozen chicken in Doraville, GA for delivery to U.S. Foodservice near Albany, NY. He also hauls potatoes and onions off of the West Coast.
“I don’t like California. I used to run it every week, but now there is just too 
much ‘crap’ out there.” Vince cites all of the excessive regulations on truckers in California, adding, “You can’t sneeze there without getting a ticket. I just took my son out there on a trip. I’ve decided I just don’t need the hassles.”
Since becoming a trucker 34 years ago, Vince has considered buying a truck, but has always decided to remain a company driver. “I thought about becoming an owner operator years ago, but right now I wouldn’t even consider it because of the economy. It’s really hard to find a good company where you can make it with a lease. Over the years I’ve seen what these companies can do, especially with these lease-purchase plans.”
One of the best aspects of trucking is simply being out on the road, Vince says. He typically leaves the house on a Saturday evening or Sunday morning to pick up a load. He is usually home by Friday at the latest. If he’s doing an East Coast run, he’s usually gone only a couple of nights.
His least favorite part of trucking, which he dislikes even more than the excessive regulations, are the attitudes of a lot of drivers.
“I don’t even mean just the new breed, but some of the older drivers as well. Sometimes it is just sickening,” he states.
What is his biggest challenge in trucking? “Trying to figure out what the other drivers are going to do before they do it. A majority of this is with the older drivers, the four wheelers and the campers,” he says. “To a certain extent there is a lack of professionalism in trucking. I”m not just talking about the baby boomers, because you have the ‘me’ generation. It’s me, me, me. That is not the way things should be done.”
There are fruits and vegetables being shipping from a number of California 
districts. As strawberry volume declines from Ventura County, there’s good volume from Santa Maria, as the Salinas Valley gears up to get rockin’. The same can be said for Salinas vegetable tonnage, which is building as well. Southern California is shipping citrus, plus there are avocados and tomatoes from shippers located between L.A. and SanDiego. Mexican tomatoes are crossing the California border at Otay Mesa. Coachella Valley grape loadings are on the rise and should be peaking most of June.
CALIFORNIA RATES RATES ARE ON THE RISE. WE’RE APPROACHING THAT TIME OF YEAR WHEN THE PRODUCE INDUSTRY STARTS PAYING FOR ITS SINS OF LOOKING FOR THE CHEAPEST TRUCK, KICKING OVER LOADS FOR WHICH THEY’VE PAID TOO MUCH FOR PRODUCT AND GENERALLY BEING BAD BOYS TO TRUCKERS.
While Nogales is pretty much finished with vegetables from Mexico, Mexican grapes crossing the Arizona border are hitting full stride.
In Washington state, there’s light volume of potatoes from the Columbia Basin and the nearby Umatilla Basin in Oregon, but onion shipments are about finished….About the only thing that leaves in Washington are Yakima Valley apples and pears.
Washington apples and pears – grossing about $4900 to Cleveland.
Mexican grapes from Nogales – about $4100 to Chicago.
Southern California produce – about $7600 to New York City.
Looking ahead in Washington state, unless weather changes everything, 
record cherry shipments are being predicted. Coming out the Yakima and Wenachee valleys, cherry shipments kick off the second week of June and will continue into mid July. Meanwhile, if you’re in the region, steady shipments of late season apples and pears continue.
In Nogales, AZ, the U.S. Custom and Border Protection has expanded lanes for trucks importing Mexican produce to eight lanes. Mexican grapes are now crossing the border and an estimated 8 to 9 million cartons are expected to be shipped to points throughout the U.S. and Canada.
Looking down the road a bit, vine ripe tomatoes out of Southeastern Arkansas could start shipping one to two weeks early this year. Light volume is expected by late May, with good volume coming within a week or so. Shipments are expected to continue into mid-July.
Blueberry loads are now available from Southern Georgia, joining other items ranging from greens to squash, cucumbers and peppers. Southern Georgia’s Vidalia onions are now in peak movement to markets, particularly in the eastern half of the country.
In California, grapes and melons are coming out the desert, while Southern California continues to ship berries, avocados, citrus and some veggies. Look for building volume on vegetables from the Salinas Valley….May should be an interest month as we monitor building produce volume, availablilty of refrigerated equipment, and its effect on freight rates…..As always, truckers’ abilities to find westbound freight to pick up fruits and vegetables in California and the Northwest will be a challenge.
Tod Taylor has been trucking off and on for over 25 years, but it’s the onlyprofession he’s known for the past seven years. He has 
pretty much done and seen it all during his career and is thankful the equipment has improved immensely.
He still has vivid memories of his first job trucking in January 1986 when he was driving for a company with a 1982 cabover. “They left me in New York City for three weeks, mainly to pick up and drop trailers. I vowed I’d never go back there,” he recalls.
He hasn’t strayed much from those feelings today. A company driver for Professional Services Transportation Inc. (PSI) of Huntsville, MO, Tod says he refuses to drive inside of Interstate 287 in New York. He, as well as PSI pretty much also avoids trucking in California because of the rules, regulations and gridlock.
“You can’t make any time in California or New York. You are dealing with too many things that eat the clock up,” he states.
While hauling meat is the primary focus for PSI, the company also transports its share of fresh produce. In fact, he finds some similarities between the two categories of loads.
Tod had just hauled a load of meat from Milwaukee and made two drops inAtlanta. Now he was parked at an Atlanta truck stop and in 14 hours (3 a.m.) was scheduled to make his first of three more drops. Sounds a little like some produce hauls, in which he also aired some opinions.
“If the produce people would get their act together, it wouldn’t be bad (hauling fresh fruits and vegetables). You wait three days to pick up two skids. You wait for those skids because the product has to be harvested. Trucking just don’t pay enough to do that. When I get lucky and finally get loaded, then they don’t want to pay you anything to haul it,” he reflects.
Tod believes a minumum of two dollars per mile is needed to haul produce out of California and many other places, “but most guys aren’t getting that. They want you to drive 3,100 miles for $2,800. You can’t do that, especially when you are there three to four days waiting for a load. It’s not worth it.”
At age 50, Tod has never owned his own truck, although he has considered it from time to time. However, he has always decided against being an owner operator “because I don’t need all of the extra headaches.”
Tod drives a beautiful 2012 Kenworth T-660, which had only 37,000 miles on it. He loves the truck that is powered by a Paacar 455 h.p. engine, 15-speed automatic transmission, and pulls a 53-foot Great Dane holding a Carrier refrigeration unit. The truck is a light oak leaf color with an 84-inch studio sleeper. The cab has a lot of modern features including a GPS system built into the dash.
He concludes, “Trucking has come along way from that ’82 cabover freight shaker I used to drive.”
I’ve recently returned from a produce show in Dallas and although freight rates on 
California produce loads have recently been steady, or in some cases declining a little, most people I’ve talked to (shippers, wholesalers, truck brokers, trucking companies) only see this as the calm before the storm. In coming weeks as volume builds throughout many California shipping districts, they are expecting rates to show significant increases. $9000 produce rates from the West Coast to the East Coast are expected to be common. Some would not be surprised if rates hit $10,000.
Here’s the outlook for loading opportunities on the huge volume of summer fruit that annually is shipped from California.
Strawberries – Mostly available right now out of Southern California and to a lesser degree from Santa Maria. Yet California ships 88 percent of the nation’s strawberries and it really cranks up in a few weeks when Watsonville starts shipping in volume.
Blueberries – These berries are now being loaded out of the Arvin district and as the season progresses will move northward in the San Joaquin Valley to Delano and Kingsburg. California expects to ship 15 to 20 million pounds of “blues” this year.
Melons – watermelon and honeydew from the Bakersfield area kicks off in mid-June, followed by cantaloupes around July 1st.
Stone Fruit – It was in 2008 around 60-million 25-pound cartons of peaches, plums and nectarines were shipped, but last year loadings were down to an estimated 47 million cartons. Don’t expect anymore this year. California has been shipping too much stone fruit that doesn’t taste very good, and are replacing some orchards with improved varieties….Cherries are a different story. Californians know how to grow good tasting cherries! This year the state should be loading decent volumes of cherries by the third week of May. Shipments should be in the 8 to 10-million box range; 12-million boxes in the unlikely event perfect weather continues.
Table Grapes – The Coachella Valley is currently shipping grapes and will continue through June. Shipments will then transition to the Arvin/Bakersfield district, where the huge volume will begin and gradually moves northward through the San Joaquin Valley. California may have record shipments this year, and top 100-million boxes for the first time.
Apples – California isn’t really known for apple shipments as it is dwarfed by Washington state. However, it does have 16,000 acres of orchards and available loads should be similar to last year. Shipments of the gala variety begins in late July and runs through mid-September. This variety will be followed by granny smiths in August and and fujis in September and cripps pink in October.
Oranges – The 75-million-plus cartons of navels are pretty much history for this year, while smaller loadings of valencias are now being shipped. About 28 million, 40-pound boxes of valencias should be shipped.
There’s some really sweet, tasty late season grapes from Chile in your produce department now. Enjoy them while they last, because 
the season for these imports are just about over…..Never fear though, grapes from Mexico should start arriving in your supermarkets within the next couple of weeks. There also will be the first domestic grapes arriving, from the Coachella Valley near Palm Springs, CA. Many retailers I’ve spoken with actually prefer the Mexican grapes over the Coachella grapes. Keep in mind that a lot of the Mexican grapes are actually owned, or financially backed by grape growers from the U.S. — especially from California.
I’ve been a little disappointed overall with California strawberries thus far. Some have been better than others, but overall, the quality could be better…..Of course, I have to qualify this since I shop at a small town Wal-Mart, with absolutely not competition. Wal-Mart’s produce departments have really went down hill in the past several years.
You should be finding those wonderful sweet onions in your stores by now — especially those from Vidalia, GA. Of course, Texas grows some pretty good sweet onions as well.