Posts Tagged “feature”

Some Loading Opportunities in Arkansas and New Mexico

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DSCN5453Tomato shipments have started from Arkansas, as the state’s sweet potato loadings continue.  Additionally, New Mexico is now shipping onions.

Arkansas tomato shipments got underway in early June from the Hermitage area in the southern part of the state.  Loadings will include a majority of vine ripe tomatoes, with much smaller volumes in romas and grape tomatoes.  Despite a lot rain this spring, and less acreage due to the wet fields preventing some plantings, growers are predicting over all better tomato shipments than the past two years.

Arkansas may not be known for its sweet potato shipments, but Matthews Ridgeview Farms at Wynne in the Northeastern part of the state has been increasing volume significantly in recent years. It is still shipping sweet potatoes from the 2014-15 season.  Matthews is looking to increase production 15 -20 percent for the 2015-16 season. It ships sweet potatoes through much of the Midwest and to a few receivers in Canada.

New Mexico Onion Shipments

A normal start with New Mexico onion shipments kicked off in late May and  run through late August, with some sheds shipping through mid-September.  New Mexico growers planted about 5,200 acres of dry onions in 2014, according to the U.S. Department of Agriculture.

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S. African Citrus is Arriving at Ports in Newark, Philly, and Houston

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DSCN5851by Western Cape Citrus Producers Forum

Citrusdal, South Africa – Excellent weather conditions in South Africa have contributed to an earlier citrus harvest in the Western and Northern Cape regions of South Africa, resulting in earlier arrivals of citrus to the US.  Containers carrying Easy Peelers and Navel oranges will arrive at the Port of Newark over the next 2-3 weeks.

“Favorable weather conditions and optimum fruit ripeness determined the onset of the harvesting period.  Our growers believe that in terms of fruit color and eating quality, it is perhaps the best fruit in years to start the season. The high eating quality is preferred by the US consumers,” said Suhanra Conradie, CEO of the Western Cape Citrus Producers Forum.

The first conventional vessel will arrive at the Port of Philadelphia at Gloucester City by June 15th bringing with about 3,800 pallets of Easy Peelers and Navel oranges. Two other conventional vessels are scheduled to arrive by June 25th and July 6th.  “The detailed shipping plan has conventional vessels arriving through October usually every 10-12 days, based on market demand. Container vessels with smaller volumes will arrive between to assure a steady supply of our citrus,” said Conradie.

A pilot project at The Port of Houston will continue and is set to receive shipments, and provide key access to expanded Midwest and Far West regions of the US.  “While we have seen 12 percent growth with volumes last year at about 45,000 tons, it is possible that we will ship more during the 2015 season,” said Conradie.

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Northwest Shipping Update: Cherries, Apples and Potatoes

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CherriesEarly season Washington cherry shipments have gotten off to a less than a stellar start, thanks to adverse weather, plus a shipping update on other Northwest produce shipments.

What should have been big time volumes of chelans early in the season, instead has been only a trickle.  Rainiers also have suffered some wind and rain damage.

Volumes were down about 65 percent the week of June 1st.  Loadings also were expected to be off 50 percent the week of June 8th.

This week, the initial harvesting of bings should start from growing areas not hit as hard by the rains.  However, cherry shipments will continue to struggle through June.  In July, late season volumes should be much better.

Blueberry Shipments

Blueberry shipments are just getting underway from British Columbia through Northwest Washington state.  Blues also are just getting started from Oregon and Washington.  Volume currently is very light.

Potato Shipments

Potato shipments in the latter part of the season continue from Washington’s Columbia Basin and Oregon’s Umatilla Basin.  About 450 truck loads of potatoes are being shipped weekly.  The region’s onion season has pretty much wrapped up.

Washington/Oregon potatoes – grossing about $6000 to Atlanta.

Apple Shipments

Washington apple shipments and pear shipments are experiencing steady loadings from week to week.

Yakima and Wenatchee Valley apples and pears – grossing about $6900 to New York City.

 

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Texas Produce Shipments Struggle from Drought, Excessive Rains

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IMG_7039While the agriculturally rich Rio Grande Valley has been spared the brunt of the most recent storms and flooding in Texas, nine months of above-average rain has taken its toll in the fresh produce growing areas, with many acres having already been lost.

There has been 60 inches of rain from the fall through the spring.

Many cities in the Lower Rio Grande Valley have tallied impressive rain totals for May, but they are still in single digits. In comparison, Houston received 10 inches of rain during one 24-hour period over the Memorial Day weekend.

The Texas spring onion crop was probably the hardest hit, losing about 30 percent of its acreage.  Onion shipments have since ended.

Other crops, including melons and vegetables, have been hit hard and the late spring and early summer harvests should be curtailed a bit because of it.  Some growers have seen their entire summer squash program washed out.

The silver lining in the big picture is that the moisture was really need in the drought plagued state.  Texas had been in the midst of a pretty severe drought until it started raining late last summer.

Meanwhile, the Lower Rio Grande Valley remains a key distribution hub, particularly for the eastern half of the U.S., because Mexican grown produce continues to be imported.

South Texas/Mexican produce -grossing about $3200 to Chicago; $5500 to Boston.

 

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Part II – Allen Lund Co.: Freight Rates Not Keeping Up with Costs

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DSCN4660Kenny Lund doesn’t argue with the American Trucking Associations annual study, American Trucking Trends, which shows independent truckers and leased owner operators making $56,167 on average in 2014, which was 7 percent more income than the previous year.  However, the vice president of operations for the Allen Lund Company, a third party logistics provider, says freight rates still aren’t increasing enough and operating costs are high.

For example, gasoline in California is $4 per gallon, while Number 2 diesel is about $3.50 per gallon.  Take on excessive government regulations, plus an economy that leaves a lot to be desired, and Lund doesn’t see the freight rates keeping up with other costs.

“Truckers are making more money, but the rates aren’t up as much as expected, and the economy was expected to be much stronger,” Lund says.

He points out produce trucking is still dominated by companies with five trucks or less.

God bless the owner operators out there.  They don’t realize collectively what they do for this country and how important they are,” Lund surmises.  “We try to convey that as a company and treat these owner operators with the respect they deserve.  They are a critical component in the economic system of the U.S.”

He recently heard someone point out if all access to Los Angeles was cut off, there is only a four-day supply of food available.  Lund calls that thought “sobering” and notes people just do not realize what a great transportation system has been built in this country due to all of the small companies working together.

“With the efficient distribution system throughout the U.S., you can pretty much get strawberries anywhere in the U.S. the year around, and this is true with most major commodities,” he says.

ALC Logistics

As for Allen Lund Company, he is particularly excited about a division of the firm, ALC Logistics.  He developed the company’s Transportation Management System, building it from the ground up.  It is the first one created and provides software solutions ranging from claims management to freight audits, and carrier contracts, among other features.

“It is pretty exciting.  We are running about $1.4 billion through the system, working with the companies we have now, and we are just getting started,” Lund says.

As for the trucking industry itself, Lund is very interested in the development of driverless trucks.  For example the technology is now available where you can follow someone on I-40 from New Mexico to Arkansas and never touch the steering wheel.  He sees this addressing problems associated with hours of service regulations.

“I think we’re only five years or less away from it (driverless trucks),” he notes.

“If you can sell this to the driver by saying you are almost out of hours, then you put it on auto pilot.  The driver can then go to sleep while the truck is moving down the road, and have your hours still available when you arrive at destination,” Lund observes.  “It makes the single drivers like teams.”

(This is part II of a two-part series.  The Allen Lund Company was formed in 1976 by its namesake.  I have known Mr. Allen Lund nearly since the founding of the company.  His son Kenny Lund joined the company 26 years ago this month.  At that time the operation had 32 employees.  Today Allen Lund Company has 500 employees, arranges about 250,000 loads a year, of which about 40 percent is with fresh produce.  The company has 30 offices nationwide and will soon break the $500 million mark in annual sales. — Bill Martin)

 

 

 

 

 

 

 

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A Stone Fruit Shipping Outlook; Are CA Veg Shipping Gaps Finished?

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DSCN4649Here is an outlook for stone fruit shipments ranging from Georgia and South Carolina to California and Washington state.  Also, are California vegetable shipments getting over the ups and downs caused by shipping gaps from the coastal areas?

Initial Georgia peach shipments from the Fort Valley area got underway the week of May 18th.   With the arrival of June, Georgia peaches are now moving in good, steady volume.  Shipments should continue most of the summer…..South Carolina peach shipments  are on a similar schedule with a little more volume.….Meanwhile, California stone fruit moves into volume beginning in late June and continuing through July….Washington state stone fruit shipments will build in volume in August for peak peach shipments during September.

California vegetable shipments this spring have been anything but good and predictable for produce haulers.  Is that about to change?  Maybe, but don’t necessarily bet on it.

Hot weather in the early spring with shipments out of the desert areas and then the Huron District of the San Joaquin Valley, vegetables were maturing ahead of schedule.  However, with the seasonal shift of California vegetables to the coastal areas, colder than normal weather has put harvest and shipments later than usual.  It also has resulted in shipping gaps and lighter than normal volumes in many cases.

 

 

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Part I – Allen Lund Co.: Reasons for Flat CA Produce Trucking Rates

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DSCN4660Many folks involved in fresh produce transportation are wondering what is going on in California.  Despite the state growing and shipping about one-half of the nation’s fruit and vegetables, rates have remained relatively flat during the heaviest volume period of the year.

In search of answers, we turned to Kenny Lund, vice president of operations for the Allen Lund Company of La Canada, CA, a transportation brokerage and logistics company that has been in business nearly 40 years.

“I think we’re in a historic…incredible shift in produce,” Lund states, “where product is being grown where it hasn’t been grown before.  It’s hard to get the numbers, but it’s looking like there’s a 20 percent increase in produce from Mexico.”

He also cites production and shipping increases from Canada, as well as boat arrivals with imported produce from around the globe.

“But there is not an increase from the most fertile land in the world (California); there’s a decrease,” Lund contends.  “I think the decrease is more significant than people will say.”

While acknowledging the drought has a lot to do with it, Lund sees an attack by environmentalists on the California agricultural industry as being a factor.  He points to cuts in water allocations to agriculture and water going elsewhere due to environmental reasons.

He says there has been somewhere between 400,000 and 800,000 acres of California farm land being placed out of production.

“It is political more than anything,” Lund states.  “They build pipelines for everything, but for some reason we can’t do it for water.  You keep seeing a reduction of water in California and an increase in people (living here). The drought is more political than the actual drought.  There is  a lack of water going to the farms.  The Columbia River going into the ocean is enough in itself to handle California farming needs.  But the environmentalists will not let that happen.”

Similar to a statement Lund has made many times about the over regulation of trucking, he says the excessive regulation of farms is “amazing.”  For example he recently talked to someone in charge of compliance with a California farming operation and was told she had to answer to 42 different government agencies.

Lund believes this a contributing factor to Allen Lund Company having more produce loads than ever crossing the border from Mexico into California, Arizona and Texas.

“It’s a contradiction.  50 percent of the nation’s produce is grown in California.  That is under attack by a lack of water due to over regulation of farming, as well as trucking,” Lund says.  “Government is over regulating diesel engines, farming equipment, pumps; all these things are under severe attack.”

Each of these factors are contributing to what he calls a “historic” shift in produce shipments from California.  Lund talks of the Autopista Durango-Mazatlan, a 143-mile highway spanning from the growing regions of west Mexico to Texas ports of entry that opened last year.   As a result business in McAllen, Tx is booming.

While California produce trucking rates are remaining rather flat, Lund says rates are up significantly in Texas, New Mexico and Arizona.  At the same time, Florida is “mixed” because it has a very similar growing and shipping season to Mexico with which it competes.  Still, he notes Florida does not have nearly as many regulations, plus that state has plenty of water.

(This is Part I of a two-part series.  The Allen Lund Company was formed in 1976 by its namesake.  I have known Mr. Lund almost since the founding of the company.  His son Kenny Lund joined the company 26 years ago this month.  At that time the operation had 32 employees.  Today Allen Lund Company has 500 employees, arranges about 250,000 loads a year, of which about 40 percent is with fresh produce.  The company has 30 offices nationwide and will soon break the $500 million mark in annual sales. — Bill Martin)

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New Jersey Produce Shipments to Build in Volume

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DSCN3783Over 100 varieties of fruits and vegetables are grown and shipped from New Jersey, mostly from the Southern part of the state.  Here’s a round up of what is being loaded for distribution, as well as what will be available in the weeks and months ahead.

New Jersey Produce Shipments

New Jersey has 11 primary fresh vegetables:  Tomatoes, sweet corn, peppers, cabbage, cucumbers, lettuce, spinach, eggplant, escarole, snap beans, and asparagus.   Jersey’s top five principal fruits are strawberries, blueberries, peaches, apples and cranberries  (for processing).

New Jersey vegetable shipments:  The Garden state already has been shipping early season spinach, collards, beets, radishes, escarole/endive, Swiss chard, lettuces and herbs such as parsley, dill, coriander and cilantro.  Asparagus loadings got underway in late April.  Cabbage, pickles and turnip shipments started at the end of May.

Beginning in June and July

Cucumbers and squash will start in mid-June.  While sweet corn and tomatoes have normally started by July 4th, neither may have much volume by then this year, due to colder weather moving back the harvest.

Minor quantities of early New Jersey blueberry shipments  should be starting the third week of June, with good volume by the end of June.  In 2014, New Jersey produced about 8,800 acres of berries yielding about 56.7 million pounds — fifth in the nation.

July to Mid September Shipments

Yellow New Jersey peach shipments should start the third week of July, with fair volume by early August.  Larger volume varieties should begin by the early August.  Good yellow peachvolume is expected by mid-August through mid-September. White peach volume begins in the third week of August through mid-September. About 150 peach producers grew 44 million pounds of  peaches on 4,600 acres in New Jersey in 2014 — ranking fourth in the nation.

 

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Toxic Beetles are Reported in Packaged Salads

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BeetleA public warning has been issued by Canadian officials about consumers having found toxic iron cross blister beetles in prepackaged salads.  The warning otherwise is very vague, except to say that there haven’t been any confirmed illnesses or injuries.

The Canadian Food Inspection Agency issued the warning May 29th, but does not say what country the pre-packaged salads are from or what grower or shipper distributed them.  The warning also does not say where the salads were distributed.

“Fresh produce can harbor insects that may be injurious to consumers, but this is rare,” according to the CFIA’s warning.

“The iron cross blister beetle is very distinctively colored, with a bright red head and bright yellow markings on the wings, separated by a black cross. This particular beetle should be treated with caution as it may release an irritating chemical called cantharidin. This chemical may cause blisters at the point of contact.”

The CFIA advises consumers to wash and visually inspect leafy vegetables and remove beetles without touching or crushing them. The warning requests that anyone who finds a beetle to report it to the local CFIA office.

The iron cross blister beetle is generally found in the southwestern U.S. and northwestern Mexico, according to information from the University of California-Davis department of entomology website. Also known as soldier beetles because of their habit of traveling in single-file lines, they are found primarily in late spring and early summer, according to the website, and often occur in immense feeding and mating aggregations.

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WA Apples being Dumped; Plus Updates From FL and Mexican Mangoes

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DSCN0447Here’s an update on Washington state apple shipments, as well as the new crop of Florida avocados, and Mexican mango imports.

While Florida is pretty darned quiet this time of year when it comes to hauling fresh produce, the new crop of avocados has just started being harvested.  Volume will gradually increase throughout the month before hitting stride in early July.  Shipments will continue into next March, or perhaps early April.  About 1 million bushels will be shipped, similar to the 1.17 million bushels hauled last season.

Mango  Shipments

This year’s mango volume has seen shipments of more than 4 million boxes weekly; an 18 percent increase compared to the largest week in 2014,

Volumes are expected to remain steady through the second quarter of 2015.  Mexican mango imports are expected to be 3 percent higher than 2013, which was a record-breaking year for Mexican mango imports.

The forecast is for about 36 million boxes of mangos to be imported during this year’s second quarter.

Imported Mexican mangos, melons and vegetables through McAllen, Tx – grossing about $3200 to Chicago.

Washington Apple  Shipments

Fruit transporters are dumping millions of pounds of apples across Washington, leaving them to rot under hot sun.  State officials call the dumps “historic.”  In Pateros, a hillside is covered with rows of Red Delicious apples.  Trucks pull up several times a day, unloading thousands of apples on top of sage brush and flowers.

Washington growers produced the highest volume of apples on record, plus labor disputes at Washington ports have left cargo sitting, sometimes for weeks.  The Washington State Tree Fruit Association estimates $95 million in lost sales due to apples that could not ship. Growers suffered further deficits from longer storage periods.

The Feds recently helped bail out the industry by purchasing millions of dollars of apples for school lunch programs.

Yakima Valley apples – grossing about $7000 to Miami.

 

 

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