Posts Tagged “feature”

Panama Canal Restrictions Resulting in Ocean Carriers Considering Other Options

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In an article published in the Journal of Commerce (JOC), Mark Szakonyi goes in depth regarding the options that carriers are considering to face drought-driven restrictions imposed in the Panama Canal. Unless unexpected rainfall were to hit the country, transit restrictions are expected to be in place for the next few years. 

“Restrictions, which effectively reduce the maximum stowage capacity of larger vessels and limit the overall number of transits, will likely force carriers to alter networks as they try to push higher costs onto shippers,” says Szakonyi.

Panama Canal authorities have announced that the soonest relief to restrictions- which were imposed in July- could come in 2028. 

More concerning is the fact that the easing of restrictions would come when the government of Panama leaves aside years of underinvestment and supports $2 billion in investment to build a new reservoir and more pipelines.

“We greatly appreciate the current weather conditions are a factor,” Ocean Network Express (ONE) CEO, Jeremy Nixon wrote in a letter to Panamanian President Laurentino Cortizo Cohen on Oct. 30. “However, we also understand that no significant projects have gone ahead in Panama to increase the freshwater supply to the locks from other catchment areas.” 

Draft limits are reducing the capacity of container ships transiting the canal by approximately 20% across all size classes, says Michael Kristiansen, president of Panama-based consultancy CK Americas. 

Larger vessels lose approximately 350 TEUs of capacity for each foot of draft lost; with the draft now limited to 44 feet, down from the designed 50 feet, larger ships must give up about 2,100 TEUs of otherwise usable space.

Some carriers have been forced to offload cargo at terminals at either end of the canal, and then rail those boxes across the isthmus. Container lines have been generally spared from long transit delays, however, thanks to pre-scheduled transit appointments.

Carriers considering options

In Nixon’s letter to President Cortizo he explains that upon growing concerns and the lack of service reliability, ONE is considering other routings via the Suez Canal. 

This month, Zim Integrated Shipping Services added a call at the Port of Lázaro Cardenas in Mexico to allow Asian imports to arrive in the Midwest.

ONE, similar to other container lines, invested heavily in larger vessels that were able to move through a larger set of locks, which was completed in 2016 at a cost of $5.25 billion. 

Ports along the US East and Gulf coasts similarly invested billions of dollars to be able to handle the larger ships, which has helped fuel a two-decade shift of trans-Pacific imports away from the West Coast.

The lack of scheduled service is squeezing seasonal refrigerated (reefer) operators that charter vessels on an ad-hoc basis and must wait in line similar to the bulk carriers and tankers.

Nixon also raised concern about the reduction in daily transit slots for neo-Panamax vessels- those with capacities ranging from 10,000 to 15,000 TEUs that can transit the canal thanks to the new set of locks that opened in 2016- with the number falling to five starting Jan. 1 compared with the 10 available just three months ago. 

Political solutions

Panamanian politicians seem more focused on copper than water, amid the largest protests in three decades over mining concessions. Rising political instability and social unrest frame the upcoming national election in May.

Ultimately, the government must either expand the canal authority’s geographic remit so it can push through water management projects or limit current restrictions that prevent it from building new reservoirs. 

Canal officials hope construction contracts currently in the offing can be awarded by the end of 2024, with work completed in 2028. 

Depending on the severity of this drought, and potentially others to come, carriers may do as ONE warned: shift service away from the canal. 

Deploying smaller vessels is another option.

Carriers could also adjust services to send more cargo from South Asia through the Suez Canal, though it would add distance for some origins, Kristiansen said. The US East Coast is approximately 2,200 nautical miles farther from Shanghai via the Suez Canal than via a Panama Canal routing.

 

Yet another option would be for carriers to change some Asia–North America services to so-called around-the-world strings, transiting the Suez on the backhaul from North America to Asia, Kristiansen says. 

That would require an additional deployment of ships in the string to maintain weekly service frequency. Although less than ideal, it would slightly mitigate industry-wide overcapacity.

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BDA/Dorot Farm is Now Shipping New Crop of Carrots

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Israeli company BDA/Dorot Farm, a grower group of fresh and sweet carrots, is launching its crop for the upcoming season in the North American region.

Dorot Farm supplies jumbo carrots to markets, foodservice and fresh-cut companies, according to a news release. The marketer provides cello carrots in 1-pound, 2-pound, 3-pound and 5-pound bags to major retail chains in the Northeast and Canada.

“The new crop from Dorot Farm looks good, and I’m very happy with the field’s conditions,” Ami Ben-Dror, CEO of BDA/Dorot Farm, said in the release. “We will be ready to deliver our new crop to all of our loyal customers around the world.”

BDA/Dorot Farm is a top exporter of fresh and sweet carrots around the world, exporting to North America, Europe, and Africa, according to the release.

The company’s shipping is handled through BDA Marketing Inc. of Melville, NY.

  

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Peruvian Grape Exports to U.S. are Up 33 Percent from Last Season

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As of the first week of November, Peruvian grape exports to the U.S. totaled 10,295 tons, up 33 percent from 2022. The leading Peruvian exporters at this point are Ecosac Agrícola S.A.C., with 16 percent, and Sociedad Agrícola Rapel S.A.C., with 9 percent.

Also as of the first week of November, Peruvian grape shipments totaled 26,581 tons, 12 percent more than the same week last year.

With this, to date, shipments have already reached 111,521 tons, which has placed this season 54 percent ahead of last year, as reported by freshfruit.pe.

The early November totals revealed product was exported to 32 destinations, of which 3 accounted for 67 percent of all shipments. These were the U.S. with 39 percent of the volume, followed by the Netherlands with 20 percent, and the UK with 9 percent.

Shipments to the Netherlands totaled 5,246 tons, which was 22 percent higher than the same week last year. The leading Peruvian exporters were Ecosac Agrícola S.A.C., with 27 percent, and Pura Fruit Company S.A.C., with 8 percent.

To the UK, shipments of Peruvian grapes totaled 2,376 tons, which meant an increase of 2 percent compared to 2022. The most prominent exporters were Sociedad Agrícola Rapel S.A.C., with 19 percent, and Ecosac Agrícola S.A.C., with 18 percent.

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FreshEdge Acquires Greenberg Fruit Company

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INDIANAPOLIS, IN – Greenberg Fruit Company, a produce distribution company headquartered in Omaha, Nebraska, joined FreshEdge, a family of best-in-class fresh food distribution companies backed by Wind Point Partners.

Since 1936, Greenberg Fruit Company has proudly been serving customers throughout Nebraska and Western Iowa, distributing superior-quality fruits and vegetables, including an array of fresh-cut offerings under its processing brand, Professor Fresh.

The acquisition of Greenberg Fruit Company strengthens FreshEdge’s pursuit of becoming the preeminent family of best-in-class fresh food companies by expanding its geographic reach, optimizing its supply chain network, and providing additional space and logistical support to better serve its customer base.

FreshEdge now operates more than 1.12 million square feet of warehouse space across 29 facilities with a fleet of 1,041 trucks.

“Greenberg Fruit Company will be an amazing addition to our growing family of customer-obsessed companies,” said Steve Grinstead, CEO of FreshEdge. “We share the same company values centered around quality, service, and making our customers the number one priority.”

“We look forward to working together with the great team at Greenberg Fruit Company to continue to provide unprecedented service to all FreshEdge customers,” said Greg Corsaro, President and COO of FreshEdge.

“We are thrilled to be joining FreshEdge and are looking forward to this new era of growth and success for Greenberg Fruit Company,” said Brent Bielski, COO of Greenberg Fruit Company. “We strongly believe in the power of synergy and are eager to begin working alongside this remarkable family of companies to create new opportunities for our customers.”

About FreshEdge
FreshEdge is headquartered in Indianapolis, IN, and was established in 2019 with the combination of Indianapolis Fruit and Piazza Produce in Indianapolis and Get Fresh Produce in Bartlett, IL. Since then, numerous other best-in-class distribution companies and their respective value-added operations have joined the FreshEdge family, growing it into a super-regional leader in the fresh food industry with a focus on fresh produce and specialty food items. FreshEdge’s footprint spans twenty-two states throughout the Midwest and southeastern United States. Greenberg Fruit Company represents FreshEdge’s fourth acquisition since Wind Point’s initial investment in 2022. Together, Wind Point and FreshEdge intend to continue growing FreshEdge by welcoming more fresh food distribution companies into the group—all focused on high quality produce and specialty food products, along with exceptional service—to create a unique group of complementary entities.

About Wind Point
Wind Point Partners is a Chicago-based private equity investment firm with approximately $6 billion in assets under management. Wind Point focuses on partnering with top-caliber management teams to acquire well-positioned middle market businesses where it can establish a clear path to value creation. The firm targets investments in the consumer products, industrial products, and business services sectors. Wind Point is currently investing out of Wind Point Partners X, a fund that was initiated in 2022.

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Good Volume of Arizona Leafy Greens Shipments are Expected Until March

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Phoenix, AZ:  Arizona is known as the winter lettuce capital of the U.S., providing Americans with an abundance of lettuce and leafy greens from November to March.

According to United States Department of Agriculture statistics, Arizona farmers grow approximately 25% of the total U.S. lettuce supply each year. On an annual basis, the leafy greens farming community in Arizona generates a $2 billion impact. 

“Right now, Arizona farms are actively growing and harvesting all leafy greens from Iceberg and Romaine to spinach and spring mix.” said Teressa Lopez, Administrator of the Arizona LGMA program. “Arizona LGMA food safety audits will begin this week and continue regularly throughout our growing season.”

To celebrate the start of harvest, Arizona’s governor, Katie Hobbs proclaimed November 2023 as Arizona Leafy Greens Month.  This is the 11h annual celebration, and during that time Arizona farmers have produced more than 99 billion servings of lettuce (based on the average production of 9 billion servings per year).

About Arizona Leafy Greens Marketing Agreement

Arizona LGMA works to protect public health by cultivating food safety practices, verifying on-farm compliance, utilizing data for improvement and empowering industry with tools to advance food safety.  www.arizonaleafygreens.org

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Yellow Potatoes Nearing Half of the Red River Valley’s Fresh Potato Crop Volume

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By Ted Kreis, Northland Potato Growers Association

The fresh growers in the Red River Valley have long been known for their red potatoes. In fact, the valley has long been, and still is, the leader in red potato production in the nation, but the Red River Valley has quietly become one of the biggest yellow potato producers in the nation also.

Consumer preferences have created a gradual but steady increase in yellow potato demand for well over a decade in the United States. Growers have had to adjust what colors they plant to to meet these preferences. Unfortunately yellow demand has come at the expense of other colors including russets, reds and whites.

Fifteen years ago (2008) the Red River Valley only raised about 120,000 hundredweight (cwt) of yellow potatoes, or roughly 3 percent of the fresh crop. This year the valley topped 2 million cwt of yellow potatoes for the first time ever representing about 45 percent of the fresh crop!

Nobody seems to know how long this trend will continue or if it will ever level off or recede. Many have predicted it would slow in previous years, but so far those predictions have all been wrong.

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Chilean Blueberry Exports to U.S. Ramping Up, But Total Season Volume is Down

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The Chilean Blueberry Committee, together with iQonsulting, have updated their export estimate for the 2023-2024 season, forecasting exports of 76,500 tons of fresh blueberries. This new figure reflects a decrease of 7% compared to the first estimate made in October, and a decrease of 13% from 2022-23.

Year-to-date shipments to the US are rapidly ramping up, with 276 tons exported during the first week of November. In total, 892 tons of fresh blueberries have been shipped to the U.S. this season, compared to just 357 at the same time last year.

Andrés Armstrong, executive director of the Blueberry Committee commented, “This new forecast takes into consideration the effect of the rains during the first two weeks of November, as well as other associated climatic events such as frost and hail. He pointed out that the fruit is developing and progressing similar to previous seasons, as are weekly exports. “We’re seeing a pattern similar to the average of recent seasons, which will generate an initial peak of more than 5 thousand tons in week 49. Meanwhile, the period of highest volumes, with up to 8 thousand tons weekly, will occur between Weeks 51-2023 and 03-2024,” he observed.

Armstrong reported that, to date, exports of fresh blueberries are 18% greater than last season, and “the inclusion of new varieties and strong decrease of non-recommended varieties are dominating our exports.”  He also highlighted that, regarding the types of shipments, “air shipments have led exports to date with 1,422 tons and a growth of 170% compared to the same period last season. Maritime shipments are starting to increase, reaching 495 tons, which is 56% less than what was shipped during the same period last season”.

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Onion Loading Opportunities the Best in a Couple of Years

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Favorable growing conditions and some increased volume should provide more loading opportunities for onions during 2023-24 than at least a couple of seasons.

Eagle Eye Produce of Idaho Falls, ID ships red, yellow and white onions. The company finished its harvest by early November in Washington, Idaho and Oregon.

The company has 15% to 20% more onions this year because of some additional acreage and good growing conditions.

Potandon Produce in Idaho Falls ships red onions year-round, white onions seasonally and some Spanish onions from Ontario.

The company is currently shipping onions from Idaho and Oregon and will source product from Texas, New Mexico and California later on. Potandon also attributes good weather and more acreage to increased volume.

Wilcox Fresh of Rexburg, OH grows onions in west Idaho and east Oregon and has worked with several farming families for many years.


The company is pleased with the size of the red, white and yellow onions and has high praise for the quality. The firm’s volume is similar to last year.  

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Avocados from Mexico Cure Bowl: A Football Bowl Game for Breast Cancer Research

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DALLAS — Avocados From Mexico®, the number one selling avocado brand in the U.S., is uniting good health and good times with one partnership. As Breast Cancer Awareness Month comes to a close, the brand is joining forces with the Cure Bowl, a college football postseason bowl game benefiting breast cancer research. Avocados From Mexico will be the title sponsor of the 2023 Avocados From Mexico Cure Bowl, held in Orlando, Florida on December 16. Funds raised from the Avocados From Mexico Cure Bowl will directly benefit cancer research organizations.

Now in its ninth year, the Cure Bowl is more than a game: It’s a platform that brings football teams and fans together to find a cure for cancer. Since 2015, the Cure Bowl, operated by the Orlando Sports Foundation in collaboration with ESPN Events, has helped raise $4.1 million for cancer research, fighting cancers like breast cancer, which affects one in eight women.1 A cause that matters to so many women is a cause that’s also important to Avocados From Mexico, as 74% of avocado buyers are female.2

The brand is also a proud partner of Susan G. Komen®, the world’s largest nonprofit source of funding for breakthrough research to prevent and cure breast cancer, and teamed up with the organization for the third consecutive year to turn produce aisles pink during National Breast Cancer Awareness Month.

“We’re honored to be a part of the Cure Bowl, to support breast cancer awareness and research, and to make a positive impact during football season,” said Alvaro Luque, President and CEO of Avocados From Mexico. “Football games are one of the top occasions for Avocados From Mexico to be enjoyed, and avocados are a nutritious food that can support a healthy lifestyle. Now, we have the opportunity to bring our brand’s good times and good health together with the Cure Bowl for a good cause.”

And as any football fan knows, a big, sharable bowl of guacamole is an iconic part of a good game day celebration with family and friends. Half of the shoppers who are preparing for football watch parties say that avocados are served at their gatherings in connection with football games3 because no football watch party is complete without guac. And, avocados have good fats and almost 20 vitamins and minerals that support a healthy lifestyle4

“Every year, we hold the Cure Bowl to use football as a platform to raise funds and awareness for cancer research and we are so proud to be embarking on the ninth year of this mission with Avocados From Mexico,” said Cure Bowl Executive Director and Orlando Sports Foundation CEO Alan Gooch, “Football and guac are great partners, so we’re pleased to have Avocados From Mexico as our title sponsor, helping us deliver a college football bowl game that funds cancer research.”

The Avocados From Mexico Cure Bowl is one of 17 college football bowl games owned and operated by ESPN Events. The participating teams for this year’s game will be announced Sunday, December 3.

Sources:
1komen.org/breast-cancer/risk-factor/race-ethnicity/
2Numerator; Avocados From Mexico 2023 data
Shopper Journey A&U
4Fresh avocados are a heart-healthy fruit. They provide naturally good fats and nearly 20 vitamins and minerals. Source: https://avocadosfrommexico.com/avocado-nutrition/

To learn more about Avocados From Mexico, visit https://avocadosfrommexico.com, Facebook (facebook.com/avocadosfrommexico), Instagram (@avocadosfrommexico) or Twitter (@AvosFromMexico).

About Avocados From Mexico  
Avocados From Mexico is a wholly-owned subsidiary of the Mexican Hass Avocado Importers Association (MHAIA), formed for the purpose of advertising, promotion, public relations and research for all stakeholders of Avocados From Mexico. Under agreements, MHAIA and the Association of Avocado Exporting Producers & Packers of Mexico (APEAM) have combined resources to fund and manage Avocados From Mexico, with the intent to provide a focused, highly- effective and efficient marketing program in the United States. Avocados From Mexico is headquartered in Irving, Texas.

About Orlando Sports Foundation
The Orlando Sports Foundation (OSF) is a 501(c)(3) non-profit membership organization dedicated to raising funds and awareness for cancer research. The OSF holds several events throughout the year, including the Cure Bowl, which is an NCAA (National Collegiate Athletic Association) college football bowl game played each December.

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Mexico’s Agriculture in the Face of Climate Challenges

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By Isabella Silva, ALC Marcom

A harsh reality of climate and economic twists is unfolding in the heartland of Mexico, where a colorful abundance of strawberries and avocados usually flourish. The country is painted with the struggles of a severe drought, hurricane surprises, and a resilient agricultural community striving to adapt to the shifting circumstances. I had the opportunity to interview Mark Santos, Manager of Santos International and TransKool Solutions, to hear firsthand how the economic climate in Mexico is affecting the year-round supply of produce coming into the United States.

“Mexico as a whole has been struggling with severe drought. Water shortages affected many commodities greatly across the board. The state of Michoacán, where the majority of strawberries and avocados come from, has felt the brunt of this,” stated Santos. “Then comes the irony of Hurricane Otis that went from a Category 1 to a Category 4 hurricane in less than 48 hours.” While the Zamora area, a significant agricultural region, escaped direct impact, other vital areas suffered, leaving a trail of damaged crops and economic uncertainty. 

During these climatic challenges, Mexico faces an intriguing economic landscape. Despite the hardships, Santos shares that the peso stands strong against the dollar, maintaining a formidable exchange rate of 17-18 MXN, compared to previous fluctuations of 25 -27 MXN. “A stronger dollar encourages Mexican exports to the United States as Mexican growers strive to recover their investment in dollars. A weaker dollar has had growers questioning whether they should take on additional expenses such as freight and transmit times to get their product to the U.S.” With its predictable payment upon delivery terms, the Mexican market presents a tempting alternative. Adding to the complexities, Santos said, “Mexico is also struggling with labor shortages, forcing the industry to import labor from southern regions to fill the gaps.” 

The Pharr International Bridge, a port of entry for the U.S.-Mexico border, reported the lowest crossing number of agricultural loads in the last quarter in comparison to the same time frame in the past five years. Santos gives an example, “we have a customer that would traditionally move about 180 loads of berries in October, and this year moved 110 loads.” However, in the grand scheme of things, every climate has its season, and while challenges persist, there are brighter days ahead. “Mexico continues to see an increase in planted acreage, especially in high-end commodities such as berries and avocados. Geographically, it is still in the best position than any other country to export to the U.S.” 

Mark Santos has been a longtime friend with Allen Lund Company and the Lund family. Given the alignment in company culture and shared values with Santos International, the decision to collaborate six years ago was a natural progression. ALC takes pride in the partnership with the Santos family and draws upon their great insight, expertise, and local knowledge in McAllen, Texas, which is essential with Mexico being the United States largest trading partner.

*****

Isabella Silva graduated from St. Edward’s University in 2022 with a BA in Communication and minors in Psychology and Health Communication. She started working at the Allen Lund Company in July 2022 in the Marketing department.
isabella.silva@allenlund.com

Interviewee: Mark Santos, TransKool Solutions

In 2017, Allen Lund Company and Santos International came together and announced a new company, TransKool Solutions. This joint venture delivers top-tier warehousing solutions, specializing in LTL and FTL services, load consolidations, and Customs brokerage.

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