Posts Tagged “feature”
Maersk plans to eliminate Panama Canal vessel transits on a north-south service between Oceania and the U.S. East Coast, citing the ongoing drought that has reduced ship transits and container carrying capacity through the waterway, Journal of Commerce reports.
The Copenhagen-based carrier said Wednesday that its OC1 service linking Australia and New Zealand with the ports of Philadelphia and Charleston will instead use a 50-mile rail service across the Isthmus of Panama to handle cargo between the Atlantic and Pacific.
As a result, the OC1 service will be broken into two loops, Maersk said. The Pacific loop will drop off northbound cargo at Balboa for the land bridge service via rail to Manzanillo, where the Atlantic loop will retrieve the cargo and resume waterborne service.
The carrier did not say whether the nearly 26-day transit time from New Zealand to Philadelphia would change due to the land bridge. It said that while northbound cargo will not be delayed, southbound cargo may see some delays.
Other Maersk services from Asia to the US East Coast will continue to use the Panama Canal.
Along with the Panama Canal, Maersk said the OC1 would omit Cartagena, Colombia, as a call. It also directed shippers to the option of its PANZ service between Oceania and the US West Coast.
Maersk said the decision to omit the Panama Canal crossing on OC1 was “based on current and projected water levels in Gatun Lake,” which provides the water to raise and lower vessels in the canal’s locks. As of Wednesday, the Panama Canal Authority (ACP) said Gatun Lake was at 81.6 feet, compared with a five-year average water level for January of 86.9 feet.
Low water levels have forced the ACP to only allow 24 ships of any size to transit the Canal daily, down from the 35 to 40 ships it could handle before the ongoing drought that has reduced Gatun’s water levels. Ships must also carry less cargo as the Canal is limiting the maximum depth of neo-Panamax vessels to 44 feet from 50 feet. Smaller Panamax vessels, such as the ones in the OC1 service, are restricted to a 39.5-foot depth versus the typical 45 feet.
In early December, ocean carriers in THE Alliance said they were preparing to divert east-west vessel services from the Panama Canal due to the potential for transits being reduced to as few as 18 by February. But with better-than-projected water levels on Gatun Lake, the ACP did not implement that further reduction.
(Note: Since this press release the state of California has issued a state of emergency that covers Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara and Ventura counties in Southern California due to torrential rains and flooding. Strawberries could be a primary crop adversely affected by this weather. An update will be provided on how crops and shipments are affected.)
By Bobalu Berry Farms
Oxnard, CA — As the company heads into the 2024 strawberry season, partners at Bobalu Berry Farms are reviewing how the crop looks today compared to the very unsettled beginning at this same time last year.
Thankfully, January has been much more forgiving in 2024 than 2023 with the volume coming out of Oxnard, currently double of what it was at this time in 2023. The plants are healthy, staying somewhat dry, and providing excellent fruit, even though we are still technically in Winter.
The Oxnard region has received its share of rain already, but with dry days in-between and nice breezes, the plants are thriving. Additionally, Santa Maria is showing some signs that the spring season there will begin very soon.
“While this is all very good news for our strawberries, the challenge we are facing now is the inclement weather in our receiving markets”, says Anthony Gallino, VP of Sales. “When you can’t get trucks to the east coast due to blizzard conditions and flooding rain, that affects all of us”, he adds.
Consumers typically begin filling up their shopping carts at this time of year with fresh strawberries from California to help them get that taste of Spring during the winter across the country. However, when they can’t get to the store due to weather conditions, demand takes a hit, so the Bobalu team is working to keep the pipeline full, and is diverting some fruit to markets that are not impacted by weather at this time.
“The fruit from our ranches here in Oxnard and from our partner fields in Mexico is excellent right now and we are ramping up for the Valentine’s Day demand”, says Gallino. The company expects to have promotable volume to supply their partners with high quality fruit and stems for the upcoming holiday.
Once Bobalu Berry Farms gets into February, the sales team will be focused on promoting the Spring crop from Oxnard, Mexico and Santa Maria as they prepare for an early Easter this year.
By Ocean Mist Farms
CASTROVILLE, CA – Ocean Mist Farms, the leading grower and marketer of fresh artichokes in North America, announced their winter artichoke season in Coachella is well under way peaking with harvests of their Gold Standard (green globe) artichokes, as well as first picks of highly sought-after purple artichokes. Peak season on artichokes means promotable volumes to retailers through February.
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The first Frost-Kissed® crop of the season was also being harvested a couple weeks ago out of their southern growing region in Coachella, Calif. According to Director of Sales, Joe Angelo, “These exclusive artichokes were not available last year as they only occur after frosts, much to the disappointment of artichoke aficionados who know that the darkened skin on the outer leaves is strictly cosmetic, doesn’t affect the eatability or quality of the artichoke and, in fact, the frost seems to seal in a more intense and distinctive nutty flavor.” Continuing, “A possible second wave of Frost-Kissed artichokes may be available next month, weather contingent.”
About Ocean Mist Farms
Ocean Mist Farms, a fourth-generation family-owned business in Castroville, Calif., the largest grower of fresh artichokes in North America.
The company’s full line of 30+ fresh vegetable commodities include their Gold Standard green and purple artichokes, as well as a valued-added and Season & Steam product line.
By Charlie Fabricant, ALC Corporate
With the growth in awareness around climate change, the supply chain industry is taking significant strides to reduce greenhouse gas emissions while maintaining the crucial service of keeping our economy flowing. Many companies across all sectors, driven by altruism or differentiation, are incorporating ESG-focused improvements. In 2021, 73% of S&P 500 companies tied their executives’ compensation to ESG metrics. Governments are investigating additional ways to push organizations to decarbonize. One avenue that many regulators are exploring is requiring companies to publicly share their annual carbon emission data. Both California and the EU have already passed emission disclosure bills, and the SEC is expected to release U.S. wide regulations this Spring. With the transportation sector currently leading all business sectors in carbon emissions, ALC is developing low-carbon shipping programs to help our customers with their reduction and reporting goals.
To provide a very brief explanation of GHG (greenhouse gas) accounting, there are three “scopes” of emissions. Scope 1 and 2 cover direct (owned assets) and indirect (purchased utilities) emissions, which are largely controllable by reporting companies. Scope 3 includes more complex calculations from production to disposal, including all emissions associated with a manufacturer’s or retailer’s supply chain, a significant aspect of which is transportation. For example, if you were a car manufacturer, your scope 3 would include the emissions associated with the first metal being mined through the post consumer disposal and everything in between (excluding emissions captured in scope 1 and 2). The SEC regulation was originally proposed in 2022, but has been pushed back multiple times due to the difficulties associated with reporting scope 3 emissions. Due to the truckload market’s fractured nature, many shippers work with multiple transportation partners, further increasing the difficulty of consolidating this data.
So, now that I have made ESG seem scary, here’s the soothing part…In order to address environmental concerns, our company uses an EPA and CDP (Carbon Disclosure Project) based calculator which provides truckload emission data. In addition, we’re developing a ‘Green Carrier Base’, recruiting low-emission carriers for sustainable shipping needs who will have a reportable emission reduction when compared to traditional fleets. Investigations into alternative fuels, such as renewable diesel, compressed natural gas, and eventually electric charging, are also underway with the goal of setting up a fuel delivery program for interested carriers and shippers through our partner, one of the U.S.’s largest energy providers. We’re also partnering with a unique carbon offset company which prioritizes additionality and building local coalitions of small-businesses and community leaders to ensure long-term environmental and economic benefits. We all live together on the same planet, and reducing our carbon footprint should be important to us all. Reach out to me if you’d like to have a conversation.
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and became a transportation broker along with the company’s Environmental, Social, and Governance (ESG) coordinator. In 2024, he was promoted to ESG programs manager.
charlie.fabricant@allenlund.com
Cold winter weather combined with a number of tropica storms in October, including two hurricanes, has severely limited shipments of vegetables from Mexico’s main winter production areas.
Divine Flavor of Nogales, AZ reports there is no solution for the vegetables coming out of Sinaloa for the entire season, describing it as one of the most challenging on record.
Most of the Culican vegetables in the state of Sinaloa are in short supply. Much of the woes result from the hurricane Otis last October, where there was a lot of significant damage, excessive rain, humidity, and disease.
Bernardi & Associates, also in Nogales, notes weather issues have caused a lack of supply with no letup in sight, adversely affecting nearly all commodities.
Bernardi reports short tomato supplies, when under normal condtions would mean peak volume by now. The supply problems extend beyond Sinaloa and include many of the production areas in Sonora and Baja California as well.
GR Fresh of McAllen, TX. reports volumes of all vegetables are down considerably.
The first ship of 2024 with Chilean fruit arrived at the Port of Los Angeles th week of January 22nd, carrying more than 5,300 pallets of table grapes and stone fruit.
According to a press release issued by the port, it is the only one in the U.S. West Coast that receives specialized refrigerated cargo vessels carrying palletized fruit from Chile.
Departing from the Port of Coquimbo on January 3, the Ivar Reefer was operated by Cool Carriers, a company specialized in directly transporting fruit and other fresh produce. The modern refrigeration and ventilation systems, as well as the thermal insulation of its vessels, allow for optimal conditions and minimal risk of damage to the perishable cargo.
The vessel is the first of dozens that will arrive at the Port of Los Angeles, during the winter season, from January to early April.
“We have become the primary stop for Chilean fruit imports on the West Coast that are distributed as far north as Canada and as far east as Texas,” Port of Los Angeles executive director Gene Seroka noted in the release, adding that “being able to efficiently accommodate and process a variety of cargo for our customers – such as today’s fresh breakbulk shipment – remains an important priority for our Port.”
In 2021, the Port of Los Angeles invested nearly $1 million to upgrade its breakbulk building at Berths 54-55, a marine terminal operated by SSA Marine.
The building serves as the Port’s main staging area for pallets of Chilean products, which SSA Marine then quickly distributes using the Port’s extensive network of refrigerated truck services and cold storage facilities.
For more than 25 years, Chilean growers have relied on this specialized port terminal to deliver their fresh produce to North American consumer markets.
U.S. retailers are focused on table grape imports and fruit in cold storage as the domestic harvest period has come to an end and shipments are now coming in from Peru, Chile, Brazil, and South Africa, according to a report by San Lucar.
Peru
With Piura already over, Ica is now in full export season. From early April up to late December, 41,014,134 total 18 pound boxes have been shipped being the most exported White seedless (46%; 19,055,266 boxes), Red Seedless (25%; 10,215,686 boxes), Red Globe (17%; 7,066,089 boxes) and Black seedless (5%; 1,863,095 boxes).
Of these exports, 56% are destined for the U.S., 10% to Latin America, 24% to Europe, and 9% to Asian markets.
Even though Peru is expected to export fewer grapes this season year-on-year, until week 51 of 2023, the country had exported 23% more than the same period last year.
Brazil
The export period out of Brazil lasted until week 52, the last of 2023. The South American country exported a total of 5,473 containers. Of the total volume, 3,923 of the containers were shipped into the EU and 1,453 into the U.S.A.
Chile
Reports out of Chile show that shipments to the U.S. started four weeks earlier than last season and unit week 51 of 2023, it had already exported 1,279,642 boxes.
NEW YORK — Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from Grocery Doppio’s December 2023 Digital Grocery Performance Scorecard.
Grocery finished the year strong in December, with a 12.6% jump in overall sales, and 9% in digital sales, as compared with November.
This left grocers ‘mildly optimistic’ about business opportunities in 2024, with 57% reporting that they expect a better year in 2024 than they had in 2023. Here’s how they ranked their top business opportunities for 2024:
- launching/growing retail media: 81%
- scaling personalization: 76%
- increasing profitability: 64%
- improving price/promotion: 64%
For grocery shoppers, on the other hand, cost control and wellness are the biggest influencing factors to their immediate priorities. 83% of shoppers said they are focused on savings, discounts and promotions at this time, and 69% said they prefer easy-to-understand deals like “$2 off” and “2-for-the-price-of-1” rather than % discounts. Meanwhile, 67% plan to shop healthier foods in 2024, 23% intend to buy more organic produce, and 64% desire to dine together as a family more frequently.
The December 2023 performance scorecard is based on aggregated data from 2.3 million U.S. shopper orders, plus polling of 42,267 grocery shoppers and 4,081 grocery executives between January 1, 2022 and December 31, 2023.
More key findings from Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard” include:
- 74% of grocers expect to discount/promote the same amount or more in 2024 than they did in 2023.
- 86% of shoppers plan to buy both in-store and digitally in 2024.
- Grocery pickup increased by 3.4% in December, compared with November 2023. And 17% of shoppers will increase their use of pick-up services in 2024.
“Inflation has not abated, and shoppers remain focused on price going into 2024,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “As basket sizes and average price/item continue to grow from month to month, the pressure is on grocers to come up with the attractive promotions and discounts that shoppers desire.”
“Shoppers are looking for healthy options, cost saving opportunities, and satisfaction of other individual interests,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “To maintain customer loyalty and improve profitability in 2024, grocers need the ability to generate highly accurate and scalable personalized search results and recommendations in their digital channels.”
The December 2023 Digital Grocery Performance Scorecard is one of many resources available on Grocery Doppio. Grocery Doppio is a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth.
Grocery Doppio brings together research-driven grocery content, fact-based observations, and industry expert perspectives, to deliver a monthly performance scorecard that identifies improvement opportunities for grocery retailers.
To download Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard,” click here.
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.
About Wynshop
Wynshop is an ambitious team of digital innovators obsessed with a solitary mission—helping grocers and other local store-based retailers grow wildly successful online businesses. Its refreshingly easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and gives retailers the ability to control every facet of their customers’ digital shopping experience. This results in a more personalized customer journey and amplified shopper loyalty.
By Pacificpro Sales LLC, Belleville, WA
Good volume shipments are expected this entire season through the summer into new crop, on the primary varieties.
The entire 2023 Washington apple crop is currently in storage and controlled atmosphere rooms and is shaping up to be a great season for growers and consumers alike.
The harvest began in mid- August with the Gala variety and finished in November with the latest season variety to be harvested, the Pink Lady. Estimates put the total crop size in the 134 million box range. This is up over the 5-year average and a significant increase from the 2022-23 crop of 104 million boxes, a 29% increase.
The large crop is due to the ideal growing season in the spring and summer of 2023. The lack of any significant freezes after the bloom, no significant hailstorms or other weather damage, and 90-degree temperatures this summer resulted in a very clean crop with great sizing, color, crispness and flavor.
The warm days but not overly hot days, which would be more than 100 degrees, are great for sizing and sweetness, and when coupled with the cooler nights, results in great color and condition.
The Gala variety tops the list as the largest volume Washington apple variety this season at roughly 20% of the total crop or 26.5 million boxes, followed by the Honeycrisp, Granny Smith, Red Delicious and Fuji.
The iconic Red Delicious has been usurped in recent years by the Gala as the largest Washington variety. The Honeycrisp saw a significant jump in total volume this year due to the larger crop and better quality resulting in higher pack-outs.
The newest broadly grown variety, the Cosmic Crisp, continues to grow in both availability and popularity, accounting for roughly 5% of this season’s total Washington crop.
BEAVERTON, OR — Spot truckload rates rose in December, and the gap between spot and contract van rates closed to its narrowest point since March 2022 when prices to move truckload freight were near all-time highs, said DAT Freight & Analytics, which operates the DAT One online freight marketplace and DAT iQ data analytics service.
A convergence of spot and contract rates would signal an end to the current cycle of falling prices for truckload services.
“At 39 cents, the spread between spot and contract van rates is still substantial but was down 7 cents compared to November,” said DAT Chief of Analytics Ken Adamo. “The price to move van freight under contract hit its lowest point in nearly three years. Entering 2024, shippers are in a strong position as they negotiate contract rates, and carriers on the spot market have some optimism that the market will turn.”
Freight volumes fell for all three equipment types
The DAT Truckload Volume Index (TVI) fell for all three equipment types compared to November:
- Van TVI: 221, 8.7% lower month over month
- Refrigerated TVI: 182, down 5.7%
- Flatbed TVI: 203, down 14.7%
The van and refrigerated (“reefer”) indexes were down nearly 2% year over year.
“Lower van freight volumes suggest that shippers drew from inventory ahead of the holidays,” said Adamo. “Disappointing freight volumes and less demand for over-the-road truckload services tempered the bump in spot rates.”
Spot rates increased for all three equipment types
Spot line-haul rates, which subtract an amount equal to an average fuel surcharge, increased for all three equipment types compared to November:
- Line-haul van rate: $1.65 per mile, up 7 cents
- Line-haul reefer rate: $1.98, up 4 cents
- Line-haul flatbed rate: $1.87, up 4 cents
Changes to DAT’s broker-to-carrier benchmark spot rates were mixed. The spot van rate averaged $2.10 per mile, up 3 cents compared to November. The reefer and flatbed rate dipped 2 cents to $2.47 and $2.41 a mile, respectively.
he contract van rate fell 4 cents to $2.49 per mile, the lowest since February 2021. The reefer rate was down 6 cents to $2.88 a mile, while the flatbed rate fell 3 cents to $3.14.
Load-to-truck ratios indicated a soft market for carriers
DAT’s national average load-to-truck ratios slumped, driven by the decline in freight volumes:
- Van ratio: 1.9, down from 2.1 in November and from 3.4 in December 2022
- Reefer ratio: 3.4, down from 4.4 in November and from 5.7 year over year
- Flatbed ratio: 5.1, down from 5.9 in November and from 9.8 year over year
Load-to-truck ratios measure the number of loads posted to the DAT One marketplace relative to the number of trucks. Changes in the ratio typically reflect the pricing environment for truckload services on the spot market.
About the DAT Truckload Volume Index
The DAT Truckload Volume Index reflects the change in the number of loads with a pickup date during that month; the actual index number is normalized each month to accommodate any new data sources without distortion. A baseline of 100 equals the number of loads moved in January 2015, as recorded in DAT RateView, a truckload pricing database and analysis tool with rates paid on an average of 3 million loads per month.
Spot truckload rates are negotiated for each load and paid to the carrier by a freight broker. National average spot rates are derived from payments to carriers by freight brokers, third-party logistics providers and other transportation buyers for hauls of 250 miles or more with a pickup date during the month reported. DAT’s rate analysis is based on $150 billion in annualized freight transactions.