Posts Tagged “feature”

Fresh Produce Imports are Expected to Outpace exports

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DSCN3254+1With the USDA forecasting imports into the United States will exceed exports, that is good news for produce haulers.  Imported produce continues to grow, especially during the winter months.  U.S. ports, particularly in the Southeastern USA are handling more imported fresh perishables than ever.

The USDA is projecting stronger growth for U.S. imports of fresh fruits and vegetables.  Fresh fruit imports in FY 2015 will total $10.3 billion, 8.9 percent higher than 2014 and 23 percent above fiscal year 2013.  Fresh vegetable imports are forecast at $7.1 billion in 2015, 7 percent above FY 2014 and 8 percent above fiscal year 2013. The top imported fresh commodity in 2014 was Mexican tomatoes at $1.6 billion, 1 percent  above 2013. U.S. imports of Mexican avocados surged in value in 2014, rising from $920 million to $1.23 billion.

U.S. imports of fruits and vegetables will continue to outpace exports.  U.S. fresh fruit and vegetable exports will reach $7.9 billion in fiscal year 2015.  Strong exports of fresh fruits and vegetables will help total U.S. horticultural exports reach record levels. At $7.9 billion, fresh fruit and vegetable exports for fiscal year 2015 (October 2014 through September 2015) are forecast 6.4 percent ahead of fiscal year 2014’s total of $7.42 billion.

The U.S. exported $600 million in fresh berries to Canada in FY 2014, representing the biggest commodity export value to any country.  U.S. berry exports to Canada were 2 percent down from 2013,  but 5 percent above 2012.  U.S. exports of lettuce to Canada topped $400 million, and both grapes and apples tallied more than $200 million in export sales to Canada.  The top export to Mexico was apples at $257 million, down about 25 percent compared with 2013.

Imports from distribution centers near South Florida ports – grossing about $2300 to Chicago.

 

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Mexican Produce Ramping for Shipments through Nogales

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DSCN3905Nogales produce shipments have been light and inconsistent for the past couple of months, which is pretty typical this time of year.  However, volume should show significant increases once we are past Christmas and heading into the New Year.

Everything from Mexican grown peppers to cucumbers, squash, eggpland, beans, tomatoes and melons should be crossing the border into Arizona in good volume.

A lot of people are keeping a close eye on the volume coming through Nogales to see if the port is losing business to the port of entry in McAllen, Tx, which is now receiving vegetables from West Mexico, with the completion of the 143-mile Autopista Durango-Mazatlan  highway.  West Mexican vegetables have historically moved through Nogales to destinations across the United States and Canada. With the new highway opening, it cuts a days travel time off of loads destined to points east of the Rocky Mountains.

While some Nogales distributors see the area losing business to Mexico, most say this is not the case.  Between September 2013 and April 2014 movement across the Arizona border had increased 17 percent.  Another advantage some are citing with Nogles over McAllen is the Arizona distribution facilities are fairly close together, while more spread out in Texas.  This is a disadvantage for truckers picking up product at multiple distribution centers in McAllen.

Finally, some products in central Mexican – especially toprical fruits and avocados – that used to go through McAllen, are now being hauled westbound over the new Mexican highway and crossing the border at Nogales, for destinations in the Western half of the United States and Canada.

Mexican produce crossing at Nogales – grossing about $4100 to Chicago.

 

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Florida Grapefruit Shipments are Expected down Only Slightly

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DSCN4685by Florida Department of Citrus

Florida citrus growers are optimistic after the first citrus crop forecast of 2014-2015 was released by the U.S. Department of Agriculture with groves looking healthier and exterior quality having improved compared to the last couple seasons. The forecast includes a projection of 15 million boxes in Florida grapefruit shipments (four million white and 11 million colored), which though a slight decline from the previous season is an indication of grapefruit production stabilization for the industry.

Florida remains the largest grapefruit production region in the world with just over 44,900 acres of grapefruit trees. It’s estimated that there are 4.6 million bearing grapefruit trees in Florida.

“Despite the slight reduction to the size of the overall grapefruit crop, we expect the improved exterior quality to allow for more Florida grapefruit to be packed and shipped to our key export markets compared to last season,” explains Michael Schadler, director of international marketing at the FDOC.

As the season continues, the initial crop forecast will be adjusted to reflect any changes. However, many in the industry are hopeful the numbers will remain strong.

Central Florida citrus shipments – grossing about $3400 to Boston.

 

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Avoid Making Life Decisions Based on Emotions

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IMG_6361By Larry Oscar

Most decisions in life require that you to set aside your emotions and think logically and rationally. However, if you want your life to be “three sheets to the wind,” just make all your decisions based on your emotions. Your emotions are all over the map. One day you are up, and the next day you are down.

Riding the roller coaster of emotions to make decisions is a very bad idea. It has been interesting to note how the political spin doctors have taken over with an emotional flare. How in the world did they come up with the “war on women?”  There is no “war on women” and there never has been.  Of course it gets a lot of emotional women stirred up, especially when they

Larry Oscar                                                                       give a knee-jerk emotional reaction to the cliché without thinking about

the stupidity of it all.

If there is a war on somebody it would be a “war on men.”  After all, men die younger than women. The statistics don’t lie.  On average women can be expected to live four years longer than men.  There are several theoretical reasons for the difference, but given the high stress levels in men, who are providing for their families, it should be no surprise.

And to top it off we are often just “boy toys’” in the eyes of the fairer sex.  Yep, the guys are just a piece of raw meet thrown to the cougars!  So chose wisely my friend.

When you mark your ballot think about all those other voters and the bad choices they have made in life.  I bet there are a lot of older Jimmy Carter voters who wish they had that one back.  At least taking back a vote for a stupid politician is easier than taking back the other bad choices we have made in life.  It’s a good thing bad votes don’t come with an alimony check or child support.

Larry Oscar is a graduate from the University of Tulsa and holds a degree in electrical engineering. He is retired and lives with his wife on a lake in Oklahoma where he brews his own beer, sails, and is a member of numerous clubs and organizations.

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Obama Signs Bill Suspending Enforcement of HOS Rule

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DSCN4326President Barack Obama signed on December 16 the appropriations bill that halts enforcement of the requirement that a drivers’ 34-hour restart include two 1 a.m. to 5 a.m. periods and the once-per-week limit of the restart.

Though the Federal Motor Carrier Safety Administration is required by the law to produce a Federal Register notice to alert drivers, enforcers and other stakeholders of the change, the stay of enforcement is now legally in effect, meaning truck operators no longer have to abide by the restart provisions put in place in July 2013.

Aside from the suspension of the restart provisions, however, the law requires the FMCSA to study the rules’ impacts on drivers, carriers and safety. The agency must present a report to Congress concluding the rules boost safety before the restart provisions can go back into effect.

Hours of Service Study Required

Congress is requiring the report study provide data that determines whether or not the 2013 restart provisions can provide a greater net benefit for the operational, safety, health and fatigue impacts they cause.

To gain the necessary data, the FMCSA will have to study two groups of drivers that are “each large enough to produce statistically significant results, according to the bill. One group will operate under post-2013 restart provisions and the other under pre-2013 restart provisions. The study must be conducted for at least five months with the FMCSA comparing the two groups based on safety critical events — crashes and over fatigue levels of drivers.

The law orders that the drivers being studied, which will be derived from a range of applications and fleet sizes, will have their fatigue levels gauged by Psychomotor Vigilance Tests, actigraph watches and cameras and “other on-board monitoring systems that record or measure safety critical events and driver alertness.”

After complete data collection, the FMCSA must submit a final report that would be sent to a review panel consisting of “individuals with relevant medical and scientific expertise.”

Throughout the entire process, however, the Department of Transportation’s Office of the Inspector General must keep tabs on the agency to ensure the methodology used in the data collection is appropriate and the panel to review the study is qualified.

Timeline of the Study

The FMCSA must initially submit a report to the DOT’s Office of the Inspector General within 60 days of the bill signing (December 16), outlining how it plans to execute the study. Within 30 days of receipt of the report, the OIG must report back to the agency and House and Senate committees with any changes.

After receiving the OIG’s recommendation, the FMCSA then has up to 210 days to produce its final report based on its research. The agency must also make its report available to House and Senate committees and post it online.

The OIG must review the report and within 60 days tell the FMCSA and Congressional committees if the agency complied with the requirements of the funding law.

Only after it addresses any concerns of the OIG — and if it concludes the restart provisions enhance safety — would the FMCSA be cleared to enforce the 2013 restart rules again.

 

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Trucks Remain in Short Supply for NW Produce Shipping Areas

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DSCN4898Here is a round up on the best produce loading opportunities in the great Northwest, particularly for hauling potatoes, onions, pears and apples.  Trucks are said to be in short supply in all the shipping areas reported below.

Idaho Potato Shipments

The largest vegetable volume in the country is with Idaho potatoes.  It is another very large russet crop, averaging about 2,000 truck load equivalents being shipped weekly.  The primary Idaho shipping areas are around Twin Falls, Caldwell, Pocatello and Idaho Falls.

Colorado Potato Shipments

Okay, Colorado isn’t exactly the Northwest, but it is providing the second largest amount of potato shipments in the country.  The Rocky Mountain state is averaging over 1,125 truck loads weekly, mostly out of the San Luis Valley.

Washington, Oregon Produce Shipments

One of the most active produce shipping areas in the  west this time of year is the Columbia Basin in Washington state that is adjacent to the Umatilla Basin, in Oregon.  Those areas combined are shipping around 800 truck loads of potatoes and about 500 truck loads of onions on a weekly basis.

Northwest Pears

Last season Northwest pear shipments set a record.  This year is another big crop, although it is 2 percent below the 2013-14 season.  Shipments are reported to be ahead of this time last year.  Loadings should be available well into the first quarter of 2015.  Most volume originates from the Yakima and Wenatchee valleys in Washington state and are averaging about 500 truck loads per week.

Pears are very compatible for mixing with apples loads.  Washington apple shipments are expected to easily set an all time record this season (see yesterday’s report).

Washington state apples and pears – grossing about $8500 to Boston.

San Luis Valley potatoes – grossing about $3600 to Orlando.

Columbia Basin/Umatilla Basin potatoes – grossing about $4100 to Detroit.

Twin Falls, ID potatoes – grossing about $4700 to Atlanta.

 

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Washington Apple Shipments Should Shatter Old Record

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DSCN4423Washington apple shipments for the 2014-15 season are expected to easily blow away the previous record set during the 2011-12 season.

The state’s apple growers harvested an estimated 150 million boxes this year, a little less than originally forecast.

So far, packers have shipped 35 million boxes, leaving 115 boxes currently in storage to fill the market throughout much of 2015.   A box of apples typically weighs between 40 and 42 pounds.

The final count came in 3 percent shy of the previous forecast of 155 million boxes because of a November freeze and a port slowdown that prompted many packing companies to divert more fresh fruit to processors.

A labor dispute between dockworkers and the companies that operate the shipping terminals in Seattle and Tacoma, as well as 27 other cities along the West Coast, has drastically slowed down exports and imports of everything from fruit and airplane parts to clothing and kitchen goods.

Washington leads the nation in apple production, while Yakima County is the highest-producing county in the country.

Refrigerated trucks for hauling Washington apples continues to be in short supply.

Freight on apples out of the state have been fluctuating by $400 to $500  per truck load to the same destinations, depending on the day of the week, availability of equipment, etc.

Yakima Valley apples – grossing about $4800 to Chicago; about $7200 to Pittsburgh.

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Chilean Fruit Imports, Plus a Larger View of Produce Imports/Exports

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DSCN4931Chilean grape loadings should be up, while Chilean avocado loadings should be down this season at U.S. ports.  On a larger scale, U.S. imports and exports of fresh produce are increasing.

The first Chilean grape shipments were launched last week and should arrive by boat at Philadelphia in time for distribution prior to Christmas.  Last season Chile exported about 10 million cartons of grapes to the United States.  This season the initial report pegged the season total to be in the 11 million to 11.5 million carton range.

Chile’s avocado export volumes could take a tumble this season, in part due to the ongoing drought.  As a result the country may  only ship half the amount of fruit it did last season, or potentially just over a third.

The drought is drastically affecting avocados, mainly in the Valparaiso region where about 75 percent of national production is located.

Looking beyond just imports from Chile, the USDA predicts fresh produce imports will outpace exports.   U.S. fresh produce exports will reach $7.9 billion in fiscal year 2015.

Strong exports of fresh fruits and vegetables will help total U.S. horticultural exports reach record levels.  At $7.9 billion, fresh fruit and vegetable exports for fiscal year 2015 (October 2014 through September 2015) are forecast 6.4 percent ahead of fiscal year 2014’s total of $7.42 billion.  The U.S. exported $600 million in fresh berries to Canada in FY 2014, representing the biggest commodity export value to any country.  U.S. berry exports to Canada were 2 percent down from 2013 but 5 percent above 2012. U.S. exports of lettuce to Canada topped $400 million, and both grapes and apples tallied more than $200 million in export sales to Canada. The top export to Mexico was apples at $257 million, down about 25 percent compared with 2013.

The USDA is projecting even stronger growth for U.S. imports of fresh fruits and vegetables.  Fresh fruit imports in FY 2015 will total $10.3 billion, 8.9 percent higher than 2014 and 23 percent above fiscal year 2013.  Fresh vegetable imports are forecast at $7.1 billion in 2015, 7 percent above FY 2014 and 8 percent above fiscal year 2013.

The top imported fresh commodity in 2014 was Mexican tomatoes at $1.6 billion, 1 percent above 2013.  U.S. imports of Mexican avocados surged in value in 2014, rising from $920 million to $1.23 billion.

Mexican tomatoes and other vegetables crossing at Nogales, AZ – grossing about $6800 to New York City.
Mexican avocados and other tropical fruit, plus Rio Grande Valley, Tx citrus – grossing about $2800 to Chicago.

 

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Scout Logistics Stresses Mutual Trust with Owner Operators

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ScoutTrucker+1When you lay your reputation on the line, both as a company, and personally, you had better come through.

It is no accident that after 20 years in the industry, Lorne Swartz’s newest venture, Scout Logistics Corporation of Toronto, ON has delivered on its promise to provide owner operators with important services.

Besides offering some of the highest paying loads in North America, Lorne says Scout Logistics has a no fee, 24-hour Quick Pay guarantee on all produce hauls. He also says the company offers 24-hour dispatch, plus over 90% of their loads involve one pick up and one drop. Drivers are also able to stay connected with daily emails of available loads direct to their inbox through the company’s FREE Carrier Connect service.

“Currently, we arrange about 20,000 loads a year out of California, or about 400 truckloads a week, – 95 percent of these loads are in fact produce,” states Lorne Swartz, president.

Dani Etkin, Vice President of Business Development adds, “We have more than 1,000 owner operator partners who we work with on a regular basis. We know them personally – they visit our office on a regular basis and we trust each other implicitly -We give them the best rates and they know we’ll take care of them.”

By working for over 20 years with some of the largest produce companies in North America, Scout has built a relationship of mutual trust with both customers and carriers which results in fewer claims and rejected loads.

Scout Logistics works with a majority of its owner operators almost exclusively and provides both in-bound and out-bound freight opportunities.

“We try to build the business of our carriers, because when they are successful, we are successful,” says Swartz. “We’re always looking for new ways to make our carriers lives easier, just last year we redesigned our private load board, Carrier Connect, making it easier for carriers who are on the road to view loads and contact the dispatcher responsible, in just one click.”

Besides its Toronto headquarters, Scout Logistics has branch offices in London, ON, as well as Lebanon, NJ with plans to expand into Florida and Texas in coming months.

While the company is strongest with loads originating out of California and Arizona, it also does a sizeable business from South Texas and Florida as well as loads transitioning into Canada.

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Florida’s Port Manatee Starts Fresh Produce Service with Mexico

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DSCN4674Fresh produce is involved in a new service at a Florida port ranging from avocados to bananas, limes mangos and pineapples.

Port Manatee, located at Palmetto, FL  is starting a two-way service with Mexico that includes fresh fruits and vegetables.  The Port of Coatzacoalcos in the southern part of Mexico is involved in the new service, which got underway several weeks ago.

The calls at the port are scheduled to be carried out by the continer ship Falmouth, which has a nominal capacity of 862 TEUs, or 20-foot equvilent container units and is equipped with 204 plugs  to provide power to refrigerated containers.  The service is being promoted as the quickest short sea connection from Mexico to the United States Southeast, Northeast and Mid-west.

“Port Manatee’s proximity to Mexico is ideal for this service, said Carlos Diaz, the line’s business director.  “This new fast connection will offer reduced costs and enhanced delivery of  fresher product to consumers east of the Mississippi.”

Port Manatee bills itself as the largest capacity port on Florida’s west coast.  Institution of the service builds upon the port’s history of successfully handling refrigerated products and its cross Gulf proximity to Mexico.

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