Posts Tagged “feature”
The trucking industry brought in $700.4 billion in revenue in 2014, according to a report released this week by the American Trucking Associations. That’s the highest total revenue in history for the industry and the first time trucking has surpassed the $700 billion mark, ATA says.
The combination of a significant jump in freight volume in the year and tightening capacity spurred the revenue uptick, says ATA Chief Economist Bob Costello.
ATA’s report,its annual American Trucking Trends, also showed the trucking industry moved 68.8 percent of all domestic freight, or 9.96 billion tons, in 2014.
And the $700.4 billion in revenue accounted for 80.3 percent of all freight transporation spending, ATA says.
Owner Operators/Independents
Owner-operators, led by independents and flatbedders, had a record year for net income, according to averages from ATBS, the nation’s largest owner-operator financial services provider. Leased operators and independents together cleared an average $56,167 during 2014. That’s 7 percent above the 2013 average, $52,406. Strong freight demand, a driver shortage and plunging diesel prices contributed to the increase.
The 2014 total “is $2,000 higher than we predicted and most of it comes from the fourth quarter fuel cost reduction,” says Todd Amen, ATBS president and CEO. “All segments had a really good year.” Net income for independents and flatbedders topped $60,000. Independents’ income showed the biggest gain over the year, 8.7 percent. Flatbed haulers, however, experienced virtually no change in income in 2014. That reflects flatbedders experiencing stronger demand and rates a few years before dry van and reefers haulers, says Gordon Klemp, head of the National Transportation Institute. NTI’s National Survey of Driver Wages tracks compensation of drivers at medium-size and large fleets. “Most of the independent contractors operating in the independent and flat markets are on percent of load type programs, so their pay adjusts quicker,” Amen says. “The independents are certainly more in the spot market as well. So these two segments reflect a really good freight market last year. They have higher highs in good times and lower lows in bad times, more volatile than the other segments.”
2014, net income for the groups tracked by ATBS was:
- Independents: $60,157
- Dry van: $54,490
- Flatbed: $60,510
- Reefer: $52,064
Klemp says falling fuel prices helped owner-operator earnings in two ways. One is owner-operators receiving less than a 100 percent fuel surcharge pass-through have seen their share of fuel costs dropping proportionately. The other is that because surcharges are adjusted weekly after the U.S. Department of Energy releases its average fuel prices, a surcharge will overcompensate an owner-operator as long as prices continue to fall during the week.
Sign-on bonuses have been stable in recent months, Klemp says. The mid-point is $3,000 to $6,000, with the top tier $6,500 or more. Team bonuses remain very strong, and he has seen them as high as $15,000. Many fleets use bonuses selectively by region, to meet demand, and often keep high bonuses in place only briefly.
Pazazz, a new apple variety will roll out nationally in 2016.
According to a recent article in Progressive Grocer, Minneapolis-based Honeybear Marketing has helped leading retailers across North America and Canada boost sales when seasonal apple sales typically slow sharply .
Des Moines, Iowa-based Hy-Vee has been a key retail participant in Honeybear’s varietal development program for the past three years. Bill Kelley, AVP and director of produce purchasing for the 235-store regional retailer, said that introducing new varieties is fundamental to Hy-Vee’s mission of bringing unique and healthy food items to their customers.
Kelly cites its “great color, firm texture and a burst of flavor that quickly brings customers back into the store for repeat purchases.”
Aside from Hy-Vee, Central Market, Cub Foods and Coborns have also created multi-tier Pazazz apple displays and sampling stations at premium front-of-store locations in order to increase consumer exposure to the new variety.
Pazazz is grown in Minnesota and Washington. Additional orchards in New York, Washington, Wisconsin and Nova Scotia, Canada will generate more volume to expand the scope of the Pazazz program. The variety was originally developed by Doug Shefelbine from Holman, WI;
Harvested shipped in late fall with a careful balance of sugars and starches, Pazazz is available from late December onward as the starches convert to sugars, which gives the apple a blend of high brix with a perfect complement of sweet and tart flavors, exceptional crispness and great texture.
Florida spring produce shipments overall have been pretty good. However, as we get closer to June volume typically declines on most items and just how long good loading opportunities continue depends in large part on when it becomes too hot for vegetables to grow.
In south Florida, watermelon shippers are finishing their season, which is overlapping the early- to mid-May start of central Florida watermelon shipments. Overall, Florida is shipping high volumes of watermelons and as we near the Memorial holiday weekend (May 23-25), approaching 1500 truck loads per week.
Central Florida should be loading large supplies through late May, while northern Florida shipments will soon start in light volume. North Florida typically overlaps Georgia’s typical early- to mid-June start with watermelons.
Georgia watermelon shipments should hit good volume around June 10-15, though southern Georgia regions near Adel, Ga., and Tifton, Ga., frequently start a week earlier.
Florida/Georgia Pepper Shipments
Florida pepper volume began improving in early May, while Georgia shippers were gearing up for a mid-May start.
South Florida peppers had some quality problems, primarily from colder weather, but those issues have mostly been resolved with the seasonal transfer of shipments originating out of Central Florida. Depending upon when summer heat starts taking its toll, Florida could be shipping peppers into mid June. Currently about 250 truck loads of peppers are being shipped out of Florida, which is relatively small compared to the 850 truck loads per week of sweet corn.
Meanwhile, Georgia pepper shipments should be hitting stride as we enter June.
Central Florida watermelons and vegetables – grossing about $3000 to Chicago.
Over the past decade an estimated 30 percent of stone fruit trees in California’s San Joaquin Valley have been yanked out of the ground. This has resulted in fewer stone fruit shipments for produce truckers.
Growers and shippers in many instances replaced the trees with other crops, primarily because they were flooding the market every year, resulting in lower prices.
California stone fruit shipments are underway and moving into good volume. You should also be aware that shipments will be heavier the first half of the shipping season for peaches, plums and nectarines. While all supplies will be lighter the last half of the season, plums will be in particular short supply. Stone fruit supplies will be best during May and June, but tailing off in July.
Produce growers tend to increase plantings as volume declines from year-to-year and prices for product increase. However, unlike potatoes and most other vegetables items it will take stone fruit growers at least five to 10 years to replace trees and have fruit bearing trees for higher shipments.
With California’s winter weather being one of the warmest on recent record this year, the state’s stone fruit shipments have been fluctuating more than normal.
San Joaquin Valley stone fruit – grossing about $4600 to Chicago.
Salinas Valley vegetables – grossing about $5400 to Atlanta.
Here’s a glimpse nationally at shipping areas such as Florida spring vegetables, potatoes from Arizona and looking ahead a few weeks to peaches from New Jersey, as well as with Mexican grapes.
Florida vegetable shipments are still moving in good volume and nothing is probably providing more loading opportunities than sweet corn. Big volumes are expected through the Memorial Day weekend, May 23-25. In recent weeks Florida sweet corn shipments have exceeded 1 million crates per week!…..After the holiday, Florida corn will be declining, but South Georgia will start shipping corn in late May with much bigger volumes in early June.
South Florida watermelons have been commanding the best trucks – grossing about $4000 to New York City. That’s about 25% more than rates for Florida red potatoes and nearly 20% more than Florida veggies.
Arizona Potato Shipments
Arizona red potato shipments kicked off about a week ago and now the yellow and mini potato varieties will get going any day now. Most of the potatoes are grown and shipped from an area South of Phoenix in the Casa Grande area.
Mexican Grape Shipments
Since there is still a lot of imported Chilean grapes in the distribution pipeline, some Mexican shippers have delayed shipments for a relatively short period of time. Grapes imported from Mexico are expected to be similar in volume to a year ago with a little over 16 million boxes. The 2014 crop finished at 16.2 million boxes.
New Jersey Peach Shipments
Looking ahead several weeks, New Jersey peach shipments will get underway in July and continue into September.
New Jersey is the fourth largest peach shipping state in the country, with approximately 80 orchards on 5,500 acres.
The California drought, which has prompted emergency conservation efforts in its fourth year, has forced California farmers to abandon thousands of acres or pay more to water them, according to a recent article in the Pittsburg Tribune-Review. Anxious grocers and restaurants are watching closely for impact on the supply and price of berries, walnuts, avocados, tomatoes and other pantry staples.
Over a fifth of all American farms growing fruit, tree nuts and vegetables are in California, according to the USDA. The Golden State grows more than 200 crops and is the nation’s dominant supplier of nuts and produce including grapes, olives, peaches, raspberries, strawberries and lemons.
Issues on the farms have not reached the produce aisle. Typically, increases in farm prices for fresh fruit and vegetables show up at the retail level a month later. But a confluence of factors have counterbalanced the price pressures from water scarcity, the Tribune-Review article states.
A complicated array of transportation and labor costs, the contracts that restaurants and supermarkets have with suppliers, market competition and macro economic trends are among the factors that determine the price of food. Only 19 cents of every dollar spent on food is tied to farm costs, said Annemarie Kuhns, a USDA economist.
Price inflation has been tamped down so far because the strength of the dollar against foreign currencies made foreign produce cheaper, Kuhns said. Low fuel prices has eased transportation costs.
That could change as fuel prices rebound and the drought extends further into the growing season. Water-intensive crops such as berries and nuts, where California holds an overwhelming share of the market, stand to be the most affected, said Timothy Richards, a business professor at Arizona State University.
“If we don’t have that supply from California during the season, then prices will run up,” he said.
California accounts for 86 percent of avocado production in the United States, and if unable to replace that supply with avocados from Mexico, it would have to raise menu prices.
Salinas Valley mixed vegetables – grossing about $4200 to Dallas, $7100 to New York City.
Importers of Mexican produce at Nogales are frustrated over the lack of adequate truck supplies, high freight rates and are looking to the railroads to solve some of their problems, according to a recent news story in The Packer, a weekly newspaper for the fresh produce industry.
Struggling to acquire enough refrigerated trucks, complaints were common as the holiday season approached in late 2014. One importer described it as the worst holiday season they ever experienced getting enough trucks. However, some say the equipment shortages extend well beyond the holidays. As a result importers are taking a look at rail service.
Rail is conducive to a number of Mexican vegetables crossing the border at Nogales ranging from had shell squash, cucumbers and other hard grown Mexican items.
The Union Pacific Railroad is currently upgrading 20 miles of rail near the U.S.-Mexican border to make it easier for inspectors to check loads. There also is development of a rail switching yard in Tucson, which would help rail service.
If rail service is fast enough, items such as bell peppers also would be considered. One shipper complained of paying up to $6 per box in some cases to ship product from Nogales to the East Coast this past vegetable season.
Nogales is pretty dead this time of the year with the exception of the Mexican grape season which has just got underway.
By Loblaw Companies
BRAMPTON, ON – Smaller misshapen produce that tastes great and is good for you, is now available at Real Canadian Superstore® and select no frills® locations in Ontario and select Maxi® stores in Quebec. Furthering its commitment to offer affordable, quality products to customers, Loblaw Companies is introducing the no name® Naturally Imperfect™ line of fruits and vegetables today. Starting with apples and potatoes, no name Naturally Imperfect produce costs up to 30 per cent less than traditional produce options found in store.
“We often focus too much on the look of produce rather than the taste,” said Ian Gordon, senior vice president, Loblaw Brands, Loblaw Companies Limited. “Once you peel or cut an apple you can’t tell it once had a blemish or was misshapen. no name Naturally Imperfect, is a great example of Loblaw and our vendors coming together to find an innovative way to bring nutritious food options to consumers at a great price.”
Produce involved in the no name Naturally Imperfect program was previously used in juices, sauces or soups, or may not have been harvested due to their small size. With this program, Loblaw Companies is working to ensure farmers have a market for smaller, misshapen fruit ensuring it does not go to waste.
The Tampa (FL) Port Authority plans to construct a refrigerated warehouse, which apparently touched off a battle between another Tampa Bay port over which one would dominate the fruit importing business.
The TPA plans to invest $20.8 million in a cold storage and transload facility at the port of Tampa Bay.
The warehouse would mark the port’s return to the fruit importing business and is viewed as competition by neighboring Port Manatee in Palmetto, FL.
Port Manatee officials expressed concern that the other port would try to dominate fruit handling after the authority voted to authorize construction funding.
The port’s projects to deliver goods directly from ship to market and would include a 50-60 car capacity rail siding that could help the port better serve Midwest customers.
“Port Tampa Bay has the unmatched capacity to build unit trains,” a PTA spokesman said. “Part of the port’s overall growth strategy is to be able to serve shippers in the state of Florida with alternative, cost-efficient transportation solutions, so that they will not have to use out-of-state ports for their shipments.”
The port handles approximately 8 million tons of containerized cargo each year with tropical fruits and vegetables among its biggest items, according to port information.
The port’s 207,000 square feet of refrigerated space is used by Coral Gables, Fla.-based Del Monte Fresh Produce NA Inc., and Fresh Quest Produce Inc., in Plantation, Fla.
Responsible for handing nearly a third of all cargo moving in and out of Florida, the Tampa port port’s yearly 36 million net tons of volume is dominated by dry and liquid bulk items.
At 521,825 million net tons, general and containerized cargo accounts for less than 2% of its business.
Salinas Valley Vegetable Shipments
Supply gaps on leaf lettuce, cauliflower and other items in the Salinas Valley have cut shipments and made it more difficult for produce truckers to figure out when loads will be available. However, as we enter May loadings should improve and be more predictable.
Caution should also be used loading Salinas vegetables due to adverse effects from weather, which has experienced periods of very warm and cold temperatures. There also has been reports of wind burn and tip burn, that hurt quality, as well as yields. Just make sure your receiver is aware of any quality problems. Some product is being shipped three to four weeks earlier than normal due to above average temperatures.
Loadings of green and red leaf are particularly light due to the weather issues. The wild swings in volume have made it difficult for truckers and shippers a like.
California Strawberry Shipments
Watsonville strawberries shipments also have come on earlier this season. Strawberries, which started in February, have posted phenomenal early-season volume shipments in Salinas and Watsonville. Through April 11, the district shipped 4.1 million fresh trays, up from 1 million last year and 890,424 in 2013. Statewide in California the totals were 43.4 million, up about 4 million over 2014.
All spring holidays — Cinco de Mayo (May 5th), Mother’s Day (May 10th), Memorial Day (May 25th) — should have plenty of strawberry shipments leading up these events. Other berry shipments will experience great volume in May ranging from California raspberries, to blackberries and blueberries.
Salinas Valley vegetables and strawberries – grossing about $5000 to Chicago, $7100 to New York City.