Posts Tagged “Dallas”
Apple shipments will remain good through the remainder of the season (late July) as about 36 million bushels of fresh-market apples, mostly in Washington state, remain in storage for shipping. This is about 21% more than last year at the same time.
The 21% figure also represents how many more apples remain to be shipped compared to the 5-year average. Less than 1 million bushels of apples remain to be hauled from other states besides Washington.
There was more fruit remaining in storages for all major apple varieties to be shipped compared to last year at this time.
Washington state apples – grossing about $6500 to New York City.
Watermelons
While watermelon shipments in Florida got underway in early May, it will be the end of the month before there is decent volume. Weather and disease factors will reduce Florida melon loading opportunities this season…Both Texas and Arizona are loading watermelons, with good volume not arriving until around the Memorial Day weekend (May 25-27).
Sweet Onions
Looking ahead to the Northwest, Walla Walla, WA growers have planted approximately 600 acres of the Walla Walla sweet onions this year, down slightly from the 2012 season. Sweet onion shipments should get going around mid-June and running through mid-August. In total, Washington state last year shipped non-storage onions from about 2,500 acres, up slightly from 2011.
Potatoes
Idaho continues trying to shed itself of another mammoth crop of russet potatoes. The state is averaging nearly 1,700 truckload equivalents of spud shipments weekly, although a significant amount of this is moving by rail….Second heaviest potato shipments are currently coming out of the San Luis Valley of Colorado, where about 575 truckload equivalents are moving each week.
San Luis Valley potatoes – grossing about $1700 to Dallas.
Idaho potatoes – about $5525 to Boston.
I spent Thursday at the Great American Truck Show in Dallas visiting with as many drivers and exhibitors as possible. It was the first show I’d been to in five or six years. Dates of the show are Thursday, Friday and Saturday, August 23-25.
It appears to be a little larger than when I last attended, and there seemed to be more trucks entered in the Pride & Polish competition. There are over 500 exhibitors, according the GATS program. The first few hours of the first day of the show had light traffic, but it picked up significantly the last half of the afternoon. Traditionally, there will be a lot more attendees today and Saturday.
While there are some of the big name companies at the show such as Peterbilt and Great Dane, there are obviously a number of the big boys that continue to not exhibit at Dallas.
Still, it is a good show, with the usual workshops and country performers with big names, but past their glory days.
Apparently there is still good demand for drivers as quite a few carriers and logistics companies were exhibiting putting, their best foot forward to sign up owner operators and company drivers.
The show continues to be under air conditioning, which includes the Pride and Polish competition. Dallas can be brutal in August, although yesterday it was only 95 degrees, with low humidity.
Show hours today and Saturday are 10 a.m. to 5 p.m.
— Bill Martin
Better treatment of truckers was a primary theme at a session titled, Transportation Best Practices for the Produce Industry, held during the annual show of the United Fresh Produce Association, May 1, at the Dallas (TX) Convention Center.
The theme of the meeting is based around a set of transportation guidelines released earlier this year by The North American Produce Transportation Working Group (NAPTWG). The group has released a document combining various transportation guidelines for the produce industry to use, with the end result being better treatment of truckers leading to more refrigerated equipment and drivers being available to haul fresh fruits and vegetables.
A member of the audience tells the panel there is a shortage of 200,000 drivers and “we’ve got some problems coming up” with an improving economy.
Panel member Ken Lund, vice president, support services, Allen Lund Co., said the average age for truckers is over 55, and not that many drivers are entering the industry. There are 2.7 million Class 8 trucks and 98 percent of those are companies with 10 trucks or less. Most refrigerated produce haulers have a one truck operation, he says.
“We want drivers to be treated well,” Lund states. He adds that today more retail receivers are treating drivers better.”
Lund notes the USA is looking at an eight and one-half to nine percent unemployment rate, yet there are “tens of thousands of openings” in transportation. “But there are not a lot of people entering the industry and we want to make it better for them.”
He points out the Allen Lund Co. has a transportation education program for drivers providing them various kinds of information such as how to take the pulp temperature of produce to ensure product being loaded has been pre-cooled.
Panel member Frank Swanson, category manager, U.S. Foods said, food safety is a concern for his company. “We look at how to get transportation companies that take care of the product and maintain the correct temperature.”
Panelist Ken Nabel, president, Kingston and Associates Marketing, LLC points out a lot of military personnel are coming home, receiving discharges and should provide a lot of potential for jobs as drivers.
Another member of the audience asks the panel what is the leading cause of produce loads being rejected?
Bret Smith, director of commodities procurement, Safeway Inc., responds the majority of kicked loads results from temperature problems with fruits and vegetables, as well as issues relating to quality.
“We need to know if a problem exists in route, not when the load arrives,” Smith says. He adds having a driver check list, plus ensuring the driver has been trained to “check all components” associated with the load helps to avoid problems with claims.
Lund points out that there are seperate points on the NAPTWG website for shippers, truckers and receivers. Those points can be found at: www.naptwg.org
What is the number one issue for produce transportation in 2012?
Nabel believes it is the cost of diesel fuel.
Smith cites “having good companies (carriers) with a good driver base.” He also says the high cost of goods Safeway must purchase for its stores is a concern. On the plus side, Smith believes docks used to consolidate loads are becoming more efficient, which is making consolidated loads more attractive to drivers.
Lund, obviously looking weeks ahead to the peak spring and summer shipping season for produce states, “When rates get high, a lot of people jump into the market (especially) when rates hit $10,000 from California to New York….Prices (rates) have gone up. Ten years ago it was $3,000 from California to Atlanta; now it’s $10,000. If we had those prices 10 years ago….” he notes
The transportation broker then adds, “Thre are a lot of shady brokers out there and a lot of double brokering going on.” Lund relates a lot of times a shipper will list the Allen Lund Co. on the document as a shipper. “We are not a shipper, we’re a broker. This is where a lot of theft occurs, as well as double brokering.”
On another topic, the panel discusses railroads and its role in hauling fresh produce.
Smith of Safeway says the retail chain has not been very successful using rail, although the company continues to consider it.
Swanson of U.S. Food cites the service of RailEx, a company working with major railroads, providing coast-to-coast unit trains. He likes the RailEx “door-to-door” service, but says over all the service is very limited.
Lund points out that only one to two percent of the nation’s fresh produce is shipped by rail.
“Some people on Capitol Hill think 50 percent of produce should be on the rails. But the infrastructure changes would be monumental,” Lund says.
Ending the session was an audience member asking the panel about 18 wheelers being powered by natural gas.
Lund says there has been a lot of testing in this area, however the infrastructure for cross country trucking is not available. Most trucks using natural gas are doing local hauls.
(For more information on the NAPTWG, see press release published on HaulProduce, titled, Transportation Group Releases Best Practices. It ran on Jan. 17, 2012)
If you want to know how produce trucking issues are viewed by some folks in the produce industry, you should have been at the annual convention of the United Fresh Produce Association, held in Dallas. Specifically, the session was held on May 1st by wholesalers/distributors and titled Examing Today’s Transportation Challenges and Alternatives.
The 60-minute meeting was held in the same Dallas Convention Center that will host the Great American Trucking Show August 23-25.
Among the issues dealt with were the driver’s shortage, detention, and hours of service. (Within the next few days I’ll provide more coverage on the session ranging hours of service to stolen loads and dicussions of alternatives to trucks for moving produce).
On the program was moderator, Ron Carkoski, head of Four Seasons Produce, Inc.; Alex Crow, national trucking manager, Hellman Perishable Logistics; Ken Nable, president of Kington and Associates Marketing, LLC; Dan Vache’, vice president, supply chain management, United; and Gary York, general manager, C.H. Robinson Worldwide, Inc.
Concerning the availablity of drivers, Crow noted there was only a “moderate” shortage of drivers — amounting to about 200,000. “We need to treat drivers as professionals. We are feeling the shortage,” Crow related. His logistics company had even hired professional “head hunters” to find more drivers. “We (as an industry) expect drivers to be professional, but often don’t treat them like professionals.”
Crow believes the driver shortage results from issues such as not paying them enough, to excessive waiting times for loading and unloading. “With the multi pick ups and multi drops we have to let the customers (receivers) know they need to pay (extra) for that.”
York at C.H. Robinson concurs. He points out driver salaries trail other occupations and many would be truckers chose higher paying jobs in construction and elsewhere.
“In 2004 we saw 1.6 million housing starts. Today there are about 600,000. Housing starts next year are projected to be about one million, and “drivers tend to go where the work is. As the economy improves, the driver shortage will increase, and transportation will cost more in driver wages.”
Vache’ of United, who has an extensive background with in-tranist temperature recording devices (such as Ryan Instruments and SensiTech), adds, “Drivers are tired, not just of being treated like second class citizens, but third and fourth class citizens. They are away from home a lot and they have families to support. What can we do to make it more attractive for drivers to enter trucking?”
York urges shippers and receivers to work on efficiency in reducing wait times at the docks. There also needs to be faster turn around times between loads. He notes while detention charges certainly are not “mainstream” in the produce industry, detention charges are being applied more than in the past.
A benefit for drivers will be advances in technolgy, York believes, which can be used to expedite action on loads involving claims. Technology can help “lay the blame” in a claims dispute and thus reduce the amount of claims arising.
Regarding efforts to increase gross vehicle weights for Class 8 trucks from 80,000 to 97,000 pounds, no one expressed much hope Congress will deal anytime soon with this issue.
Vache’ says increasing truck weight limits will be safer because of the industry continues to improve its safety record, equipment is better, etc. Heavier loads will also reduce the number trucks on congested highway.
York calls the idea of bigger trucks “appealing.”
Nable adds that heavier trucks will reduce the “footprint.” In other words, it would be good for the environment.
While the panel emphasizes the pros of increasing weight limits, the downside from a driver’s point of view were largely ignored. For example, increased weight limits will result in more wear and tear on trucking equipment, consume more diesel fuel, and result in higher costs of operation for the trucker. Will the produce industry willingly increase rates accordingly? Most truckers I have talked to believe they will be expected to haul the heavier loads without additional compensation. The prospects of the produce industry increasing freight rates for hauling heavier loads was not addressed by the panel.