Posts Tagged “feature”
A continuous rise in global shipping and container rates is causing concern in Western and Eastern markets across the globe.
Led mainly by tight capacity, strong demand, and the ongoing disruption in the Red Sea, rates are approaching record highs seen during the COVID-19 pandemic.
Shippers and forwarders in Brazil report they are seeing container freight rates continue to surge on northbound trades to the U.S., Central America, and the Caribbean.
Forwarders say rates have already doubled since mid-June and show little sign of easing until November or December, if not later.
One source told the Journal of Commerce that rates have reached $5,000 to $6,000 per FEU, “depending on how late you try to book.”
“Freight rates are rising drastically,” Fabrizio De Paulis, managing director of Brazil forwarder De Paulis Logistics & SCM Eireli, told the Journal of Commerce. “There’s been a capacity shortage in July, with many vessels sold out, especially Maersk services.”
Highlighting the boom in Brazilian exports to the U.S., the U.S. Census Bureau reported that goods worth $17 billion were imported into the U.S. from Brazil in the first five months of the year, up from $14.6 billion in the same period last year.
Space on the Brazil-USEC trade lane has become very critical over the last few weeks, and all the main carriers operating on this route — Hapag-Lloyd, MSC, Maersk, and CMA CGM — have been increasing their rates,” Mauricio Fisch, director of Brazil forwarder Ocean Express, told the Journal of Commerce.
“If forwarders want a booking without having a service contract with some carriers, they must book the quick spot option at a much higher rate. Otherwise, they have to wait four or five weeks for a booking,” Fisch added.
A similar situation is occurring on European and Asian routes as the Red Sea disruption continues, with Houthi rebels targeting ships linked to Israel, the U.S., or Britain as part of their support for the militant group Hamas in its war against Israel.
According to authorities, this has reduced transit in the Suez Canal by nearly 50% since December 2023, resulting in a reduction of around 40 vessels per day.
Consequently, there has been a 70% increase in vessels navigating the less direct Cape of Good Hope, which increases the distance traveled by 40% and adds delays of two to five weeks.
Rural News Group from New Zealand reports that as the World Trade Organisation predicts a 2.6% increase in exports for 2024, the global shortage of shipping containers and congestion at some Asian ports, is raising the cost of trade. Rates in the region have nearly doubled in the last three months.
On the positive side, the outlet says the current rise in shipping costs is expected to be less inflationary than the surge experienced during Covid-19 as container production, largely driven by demand to move exports from China to the West, has increased substantially over the last few months.
Additionally, the disruptions experienced in the Panama Canal appear to be easing. Although a much smaller chokepoint than the Suez Canal, it still accounts for around 7% of global seaborne trade. The ‘Panama Problem’ was caused by an extended drought in 2023 that reduced the number of vessels able to use the canal and led to draught limits that reduced operating weights.
Currently, water levels in Lake Gatun, the main body of water that feeds the system, have been rising steadily since April, meaning that by early August, up to 34 ships per day will be able to use the canal. This is a major increase on the 24 vessels per day that had access at the start of the year and not far behind the more typical 36-28 vessels that use the canal in normal times.
Delbert Bland learned exciting news about Bland Farms’ Vidalia Sweet Onions upon his recent return from Peru. This year, Vidalia Sweet Onions will be shipped until early October, several weeks longer than usual.
“We have a rather unique opportunity this year because we had a bumper crop,” said Bland, owner of Bland Farms of Glennville, GA. “We put a lot more onions in the storage. Typically, we supply Vidalia Sweet Onions until about the end of August, but this year, we will have a supply until the first part of October.”
This is excellent news for Vidalia Sweet Onion lovers who enjoy the mild, sweet flavor that can only be found in these Georgia-grown gems. Bland attributes this year’s exceptional crop to great weather conditions during the growing season. “The winter didn’t get cold enough to hurt the crop, and we had a great spring,” said Bland.
Typically, Bland Farms, among the largest growers, packers and shipper of Vidalia Sweet Onions, transitions from its Vidalia Sweet Onions to Premium Sweet Onions from Peru in early to mid-August, but with this year’s bumper crop, the company will be exporting the first part of its Peru crop internationally.
“We have to plant in Peru in May before knowing how long the Vidalias will run,” said Bland. “Now we have onions starting to come off in Peru that we don’t need because we have so many Vidalias in storage. So, we’ll export the first part of the crop to Europe and Chile. The onions we have coming off the rest of this month, and next month, we will ship to other locations outside of the U.S. We definitely want to sell Vidalias and keep those on the shelf as long as possible. So, it’s a good problem to have.”
Putting roots down in Peru was the brainchild of Bland, who took the once seasonal operation and expanded in Peru and Mexico nearly 28 years ago in order to supply sweet onions year-round.
“We started with just a handful — one or two containers,” he said. “Now, we have about 1,400 containers in Peru. We used to work with small growers we contracted with, but we shifted away from that over the years and started doing things ourselves.”
Bland’s son, Troy Bland, CEO of Bland Farms, wouldn’t have it any other way. For him it’s this hands-on involvement that sets the family-owned and operated farm apart. “It’s our boots on the ground in Peru and Mexico. This allows us to maintain the highest standards and ensure a consistent supply of Premium Sweet Onions,” Troy Bland said.
Peru’s unique dry and mild climate provides optimal growing conditions for sweet onions. Controlled drip irrigation minimizes water-related risks, unlike the unpredictable rainfall in Georgia which was a big factor for Bland when securing growing areas outside of the U.S.
As October rolls around, Bland Farms will seamlessly transition from Vidalia Sweet Onions to its Premium Sweet Onion from Peru.
“We’ll start importing our Premium Sweet Onions from Peru by the end of September,” said Bland. “It’s a smooth transition for the consumer because the taste and flavors of our Premium Sweet Onions from Peru are almost identical to our Vidalia Sweet Onions. They’re very comparable. We’re excited to continue our year-round production, and we’ve been very blessed to have produced great-quality onions in both places.”
Friesland, WI — Wisconsin red, yellow russet potato harvest is underway at Alsum Farms in Adams, WI with the first potato loads being washed, graded, and packed for fresh market shipments to distribution centers and retail grocers.
“The first harvest of yellow potatoes at Alsum Farm looks promising,” says Larry Alsum, President & CEO of Alsum Farms & Produce in Friesland, WI.
Alsum Farms russet potato harvest began on August 20th with the Russet Caribou and Goldrush varieties. Both early season varieties will be the first of new crop russets to be harvested off the field and freshly washed, packed and shipped to retail grocers in the Midwest and beyond. In addition, new crop Wisconsin organic russet, red and yellow potatoes were available for shipping beginning August 5th.
Alsum offers a wide variety of pack options from 12 ounces up to 50-pound packs; and in poly, mesh, paper or cartons.
Alsum Farms & Produce, Inc. packs potatoes and onions under the Alsum Farms & Produce brand. Organic potatoes are packed under the Alsum Organics and Rainbow Organics labels. Alsum also packs unclassified potatoes under our Family Favorite brand.
For more than 50 years, Alsum Farms & Produce has been a leading grower and shipper of locally grown potatoes and onions and provider of fresh, quality produce.
Alsum Farms grows 3,000 acres of Wisconsin Healthy Grown® Certified Alsum Potatoes along with pumpkins.
Meat was the main ingredient in most Independence Day dishes and a primary driver of high supermarket bills for the recent holiday. An American Farm Bureau Federation report suggests to save money, Americans should focus on preparing mostly side dishes.
The report states hosts feeding a group of 10 will spend an average of $71.22, a record high price that can be first and foremost attributed to inflation. The cost of food for the recent 4th of July holiday was 5% more than last year and 30% higher than in 2019 before the Covid-19 pandemic.
This is the first year that grocery costs have surpassed $7 per invitee, with the total meal costing $7.12 per person.
In 2023, U.S. consumers spent a total of $9.5 billion on food.
According to the World Metrics Report for 2024, approximately 190 million pounds of beef were bought in preparation for the July 4th celebrations.
Two pounds of potatoes cost an average of $1.53, 17% less than last year, recovering from record-high prices due to weather-related production decreases in recent years.
Chicken is the only protein that has decreased in price; 2 pounds of chicken breast will cost an average of $7.83, a 4% decrease since 2023 and down over 13% from the record high in 2022.
The survey pulls prices for a complete, homemade cookout consisting of cheeseburgers, chicken breasts, pork chops, potato chips, pork and beans, fresh strawberries, homemade potato salad, fresh-squeezed lemonade, chocolate chip cookies, and ice cream.
Meat costs are at an all-time high. According to the report, 2 pounds of ground beef cost an average of $12.77, up more than $1, or 11%, from last year. The prices of pork chops and cheeseburgers are up as well.
Lemonade won’t come cheap either. Lemon production is estimated to fall over 16% this year due to the citrus greening disease outbreak in California, where most U.S. lemons are produced. These supply effects have raised lemon prices by 13% on average from last year to $3.20 for 1.5 pounds.
Strawberries and potato chips are both higher than in the last two years. Two pints of strawberries cost $4.61 on average, less than its high in 2021.
The World Metrics report notes that fresh fruit salads are prepared by 41% of Americans for their celebrations.
Fruit salads are one of the most popular desserts for the occasion, usually including a mix of berries, watermelon, and even bananas, the classic red, white, and blue salad.
Volume is expected to be a little lower than 2023 for Michigan apple shipments.
The Wolverine State, produced nearly 32 million bushels — or 1.34 billion pounds — of apples in 2023, according to the USDA.
The official crop estimate for this year will be announced at the USApple Outlook conference in Chicago on Aug. 16, however, Diane Smith, executive director of the Lansing-based Michigan Apple Committee, said it looks like the state’s growers will have another good-sized crop, “but it likely won’t reach 30 million bushels.”
BelleHarvest Sales Inc. of Belding, MI launched its season about 10 days ahead of last year with early varieties paula reds and golden delicious. Picking started the first week of August, and shipping got underway the following week.
BelleHarvest expects to have a slightly larger crop than last year on most of its 15 varieties.
The harvest at North Bay Produce of Traverse City, MI, started two weeks earlier than usual because of warm weather and more rain than normal.
North Bay ships 18 varieties of apples with gala, Honeycrisp, red delicious, fuji and mcintosh, among the most popular. EverCrisp, the last variety to be picked, is an up-and-coming variety.
The company notes harvest usually continues into mid-October, but likely will finish around the first of the month because of the earlier start.
This season’s apple harvest at Riveridge Produce Marketing Inc., Sparta, MI got underway August 9 and volume should be about the same as last year.
Riveridge is reporting good quality with a normal range of sizes on its Honeycrisp, gala, fuji and other varieties.
A new study shows that storing blood oranges in cool temperatures boosts the fruit’s antioxidants and other health benefits.
The fruit, known for its deep red flesh which contains an antioxidant pigment, is rich in useful health compounds that include anthocyanins, flavonoids, polyphenols, hydroxycinnamic acids, and ascorbic acid. All compounds are linked to several health benefits including anti-inflammatory, antidiabetic, antiviral, antiobesity, and antitumor properties.
The study shows that storing the orange at ambient temperatures can degrade the bioactive compounds and shorten its shelf life due to water loss, increased respiration, and fungal decay.
The oranges were harvested from a research plot at the North Florida Research and Education Center in Quincy, FL, and immediately transported to the lab at the University of Florida.
The new University of Florida report shows that storing blood oranges at 40 to 53°F enhances anthocyanin, phenolic content, and antioxidants. When they lowered the temperatures 43 to 46°F, they also preserved fruit firmness, weight loss and sugar content.
The fruit is commonly grown in countries with cold Mediterranean climate like in Italy and Spain. In the United States, blood oranges grow primarily in California.
Florida citrus growers might have a hard time growing the variety in the state, due to its subtropical weather. Anthocyanin develops when the fruit is exposed to cold temperatures for at least 20 days, weather conditions that are rare in the state.
Lead author of the study, Fariborz Habibi says growing the variety might not be viable just yet for Floridian growers.
“Although blood oranges typically command higher prices than other common varieties, such as navel or Valencia oranges, it is unclear if farmers could substantially increase their per-acre income by adding them to their crop selection and then storing them for internal color development,” Habibi explained.
“Improved fruit quality from the storage method presents a promising opportunity for the Florida citrus industry. However, further study is needed before recommending anything to growers.”
Imports of Aspargus from Peru has had steady, consistent volume, but more volume will be arriving soon.
The USDA reported Peruvian asparagus accounted for 37% of the total supply in the U.S. during the week of July 7-13. Other suppliers to the U.S. market in mid-July included Mexico, which accounted for 48% of the total supply, and Canada, which accounted for 4% of the total supply.
Crystal Valley Foods of Miami, FL notes there has been less volume this time of the year due to weather factors. To make up for lower volume from Peru, the company has been sourcing product from Mexico.
Although asparagus is imported from Peru 52 weeks a year, peak supply is typically from about mid-September through November.
Crystal Valley Foods receives most of its Peruvian asparagus imports at Miami International Airport (when asparagus is flown in), as well as the port of Miami.
Its primary asparagus customers are in foodservice and retail chains.
Another shipping season of quality red, white and yellow potatoes from growers in Washington and Oregon is expected.
The 2024 harvest started in late July for some growers, but will not get underway until early September for others, which is typical.
USDA estimates that Washington produced 99.7 million hundredweight of potatoes in 2023, about 10% of which was destined for fresh market.
Total potato production this year will be down due to a reduction in acres planted, according to the Washington Potato Commission of Moses Lake, WA.
About 16,000 fewer acres were planted this year. With excellent weather during the growing season yields per acres are expected to increase.
An overall 8% decline in Washington’s potato production is expected by the commission compared to last year.
Total potato acreage in Washington is projected to be down 10% to 12%.
Growers in the state have planted an estimated 144,000 acres of potatoes, of which about 16,000 acres are for fresh market.
Oregon’s growers produced about 27.4 million hundredweight of potatoes in 2023, according to USDA.
The Oregon Potato Commission of Portland predicts about 10% of that volume is for fresh market.
Oregon grows about 43,000 acres of potatoes.
Double-N Potatoes of Burlington, WA ships red, yellow, white potatoes and purple potatos.
Harvest gets underway the first or second week of September, volume expected to be similar to last year.
Double-N Potatoes ships from September until the end of April.
Valley Pride Sales LLC, also based in Burlington, will start its 2024 harvest in early September.
The company, which ships potatoes year-round, has white, red and yellow potatoes and some small potatoes for consumer packs.
Eagle Eye Produce of Iona, ID ships potatoes the year-round potato out of Mattawa, WA. It’s 2024 harvest has just got started.
The company’s acreage will be down this year because of crop rotations and an industrywide oversupply with grower returns below the cost of production.
Potandon Produce of Pasco, WA, expects to have a higher-quality crop of russet potatoes this year as last season had its ups and downs. A more consistent crop is seen this year.
Potandon’s harvest started in late July. The company ships out of Washington the year around.
Guatemala remained the primary exporter to the United States in 2023, reaching a record export value of $280 million.
Most melons consumed in the United States are grown domestically, but imports are capturing a growing share of the fresh melon market.
The market share of imported melons has increased significantly over the decades – from an average share of less than 10% during the 1980s and 1990s to about 37% in recent years.
Melon imports rose for the third consecutive year to a record high of 3.1 billion pounds, with ample supplies from Guatemala, Honduras, and Mexico.
In 2023, the estimated domestic availability of melons was 7.54 billion pounds, up 1% from the previous year. But, the import share of domestic availability for all melons reached 41.4% in 2023, the highest on record.
Increases in watermelon and honeydew supplies helped offset a decline in domestic cantaloupe production, and watermelon continued to account for over two-thirds of per capita melon availability.
Cantaloupe imports increased 6% in 2023. Over the last three years, 65% of fresh cantaloupe imports have come from Guatemala, the rest of the variety imports come from Honduras and Mexico.
Between July 2023 and January 2024, over 90% of U.S. honeydew imports came from Mexico, 48%, and Guatemala, 45%. The remaining 7% came from Honduras.
Watermelon import volume also increased in 2023. Most watermelon imports are seedless varieties from Mexico and Guatemala. While watermelon makes up 58% of melon import volume, the import share of domestic availability for watermelons is lower than cantaloupe or honeydew.
Ontario may be known for its bustling greenhouse industry, but growers of field-grown vegetables in the Canadian provience have made their own mark and are providing good volume this summer.
Ontario Potato Distributors Inc. of Alliston, Ontario launched its 2024 season with yellow potatoes the week of July 15, which were soon followed by white potatoes.
Ontario Potato ships year-round mostly to retailers but also has some foodservice and wholesale customers.
Procyk Farms (1994) Ltd. of Wilsonville, Ontario began harvesting in early June, a little earlier than usual because of warmer-than-normal weather.
The firm’s product line includes tomatoes, roma tomatoes, sauce tomatoes, red and savoy cabbage, sweet corn, zucchini and red, yellow and green bell peppers. All commodities were shipping by the second week of July.
Procyk Farms will ship until the first fall frost, which usually occurs by the Canadian Thanksgiving, which will be October 14 this year. Volume will be similar to last year.
Sweet corn is the major crop grown by Rouge River Farms in Gormley, Ontario. The company, which started in Ontario with a few acres in the late 1980s, now may be the largest fresh-market sweet corn grower on the East Coast.
Rouge River also has 8,000 acres of green beans, making it one of the largest growers of green beans on the East Coast. This will be the first year the company is growing green beans in Ontario.
The firm also has sweet corn and green bean programs in Florida, Georgia and Virginia.
Exeter Produce of Exeter, Ontario will have an extensive line of field vegetables this summer. Some of the items include broccoli, sweet corn, hard squash, garlic, rutabagas, green beans, cabbage, wrapped cabbage and wrapped broccoli as well as its new napa cabbage product and several new kinds of chili peppers.
The company grows on about 6,000 acres. Most of the local summer items from Exeter Produce will finish by early October, then the company will turn to squash, cabbage, rutabagas and heartier items until Christmas.
The fourth-generation grower ships most of its product to retailers and foodservice operators, 60% of which are in Canada with the remainder in the U.S.
Scotlynn Group of Vittoria, Ontario kicked off its sweet corn season the second week of July.
The company will ship pumpkins from Labor Day weekend through the end of October.
Sweet corn shipments should continue until mid-September.
The company grows 15,000 acres of vegetables in Ontario, Florida and Georgia and ships to retailers on the East Coast and West Coast of Canada and mostly to customers east of the Mississippi in the U.S.