Posts Tagged “feature”
Within the next month USA transportation officials anticipate an audit report 
on the trucking pilot program with Mexico. While U.S. produce industry shippers may be anxious because thereport could be negative, they fear it could lead to another round of retaliatory tariffs by Mexico.
At the same time some trucking groups in the USA hope this is exactly what happens. Not necessarily retailitory tariffs by the Mexicans, but they are strongly opposed to Mexican truckers having free access to USA markets with poorly trained drivers and subpar equipment, compared to American standards — not to mentions concerns freights were plummet.
The apple, pear and cherry industries in the Northwest has paid tens of millions of dollars during the three years that Mexico imposed 20% tariffs.
The North American Free Trade Act requires the U.S. to allow cross-border trucking. However, opposition by U.S. trucking unions – including the Teamsters and trade organizations – such as the Owner-Operator Independent Drivers Association, OOIDA, has kept the Mexican trucks out for more than a decade after the act went into effect in 1994. The trucking interests cited safety concerns with Mexican trucking equipment and drivers.
Despite lobbying efforts and some congressional roadblocks, the pilot program finally gained approval from President Obama and his Mexican counterpart Felipe Calderon in July 2011. The first Mexican truck came into the U.S. in October 2011.
However, only six Mexican carriers — each with one truck approved for the program — are participating in the pilot program.
One requirement built into the pilot program is that the DOT be able to document the safety of the Mexican trucks and drivers with “statistically valid” data. Powers said that could be a difficult task because of the low participation numbers.
Late summer shipments of fresh fruits and vegetables continue in steady 
volume from around the country.
In New York state, onions have started from Orange County, while cabbage is coming from several areas in both the central and western parts of the state.
Michigan shippers continue to load a variety of vegetables, led by cucumbers and squash, particularly from the western half of the state.
It is a relatively short shipping season for red potatoes from the Big Lake, MN area. Those loadings will soon be giving away to the Red River Valley, which should move into volume shipments after Labor Day.
In California, stone fruit, grape and vegetables loads remain steady for the most part. A similar situation exits for vegetables from the Salinas Valley.
Tabulations for the outlook of national apple shipments have been issued at a recent outlook and marketing conference. The forecast predicts the smallest apple crop since 1986. This would amount to 192 million bushels, ranking it as the 31st biggest crop that will be shipped.
While the forecasts for the East and Midwest regions declined this year, the forecast for the West increased by 6 percent. And although some of its crop was damaged by hail, Washington state is still forecast to produce 135.7 million bushels, 5 percent above its 2011 production.
Washington state apples and pears – grossing about $5600 to New York City.
Michigan vegetables – about $900 to Chicago.
San Joaquin Valley produce – about $6000 to Atlanta.
Triple digit heat in much of the country has finally broken and fall shipments 
of fresh produce are coming. Two such items are fresh cranberries, that will be shipped from a handful of states, plus California apples that fill a niche between loadings of Chilean fruit and apples out of Washington state.
The third largest cranberry crop on record is being forecast by the USDA, amounting to 7.6 million 100-pound barrels. While Massachuetts will be down slightly from last fall, increases are seen in Wisconsin, Washington state, Oregon and New Jersey (the latter being virtually all processed fruit).
Expect Wisconsin cranberry shipments to get started around the week of September 17th, with Massachusetts starting around that same time as well. Oregon and Washington state seasonally start later.
While loadings begin in September, cranberries are still closely associated with the Thanksgiving holiday. Thus, the big volume is moved in the first half of November leading up to the holiday. With this big a crop, some loads will be moving after Thanksgiving (which is November 22nd) for the Christmas holidays.
California Apples
A lot more California apples used to be shipped than are today. This situation reminds me a bit of vegetables shipped from the Eastern Shore area of Delaware, Maryland and Viriginia. This region is sandwiched in between harvests to its south such as the Carolinas and Georgia, and to the north in shipping areas such as New Jersey and New York. If the Eastern shore veggies are too early or too late they are up against shipments from competing areas to the north and south of them. As a result of many “misses” compared to “hits” for the Eastern Shore, shippers have hurt. The result is fewer shippers and less volume than a decade or two ago.
If you are a veteran trucker who has hauled apples from California, you may remember in the mid 1990s there were around 10 million boxes of fruit being shipped for the season. Today, that number has dwindled to about 2.5 to 3 million boxes. Most of the loads originate out the Central San Joaquin Valley including San Joaquin County, Sonoma County and Santa Cruz County.
Shipments will continue through December. Leading apple varieties are fujis, galas and granny smiths.
While I’ve written some reports suggesting caution when loading Washington state apples from the Wenachee Valley due to 
damage from a July 20 hail storm, information is now starting to come out relating to the pears from the same area. Expect pear shippers to be loading some “hail grade” pears. Appearance is affected, but eating quality should be fine. Just make sure the parties with whom you are working to deliver the load are aware of this condition to the fruit and it is noted on the bill of lading. Washington state pear shipments are expected to set a record this season volume wise.
In Michigan, produce shipments have been running early this season, not only for vegetables, but blueberries. Expect both to complete shipping a week or two ahead of schedule this summer. Michigan blueberry volume will drop significantly beginning the week of August 27th…..Expect a similar situation with “blues” coming out of Oregon and British Columbia.
In the San Luis Valley of Colorado, potato hauls should be ramping up by the end of August…Virtually all USA potato shipping areas are expecting to load more spuds during the 2012-13 shipping season.
On the East Coast, watermelon shipments have increased significantly over the past three years from Maryland and Delaware. Virginia also is shipping melons…..Expect increased loading opportunities on watermelons for the upcoming Labor Day weekend from areas ranging from West Texas to Indiana and North Carolina.
Delaware watermelons – grossing about $1100 to New York City.
Looking across the USA, there will be a lot of loading opportunities for apples, 
particularly in the west, although fewer than a several months ago before weather factors hit some orchards.
In the East, there actually should be a few more loads available for the 2012-13 season from both Pennsylvania and Virginia. No word on the New England states, but volume from there is relatively light even in good years.
New York state, particularly the central and western shipping areas took a significant hit from freezing weather earlier in the year. The Hudson Valley apparently escaped pretty much unscathed. Overall, New York state apple shipments will be down around 50 percent, estimated to be about 590 million pounds. Before the freeze, the state was looking at about 1.2 billion pounds of apples.
Poor ole Michigan took the biggest hit from freezing temperatures this year. At one time is was looking to ship 985 million pounds. Apple tonnage now is forecast at only 105 million pounds.
Washington state, which on any given year shipments about as many apples as the rest of the other states combined, also lost tonnage a few weeks ago from hail storms. However, it was on course to have record shipments. Even though that will not now happen, it still will be loading as much fruit on average, as it has over the past five seasons.
Washington’s Yakima and Wenatchee Valley apples – grossing about $5300 to New York City and Hunts Point.
California continues to work its way through the peak summer shipping season 
as much of the middle part of the country stays in the weather’s frying pan. While this may not be good for crops and livestock in the Mid-west, it is contributing to strong, steady shipments off of the West Coast.
For example, tomato shipments from USA areas such as Arkansas, Tennessee and South Carolina have been hit hard by the heat wave. This is resulting in more demand and better California loadings, whether it is tomatoes from the San Joaquin Valley, Ventura County, San Diego County, or even from Mexico’s Baja California.
Meanwhile, California should be shipping 4 to 5 million trays of strawberries weekly right on through August — mostly from the Watsonville District. During September, loading are still expected to remain strong — in the 3.5 to 4 million-tray range. While quality of strawberries has been a little up and down this year, some observers are predicing the berries will be much better the latter part of the season. That would be great not only for strawberry lovers, but for the guys and gals hauling them. Better quality should mean fewer claims or rejected loads.
There also remains mostly steady shipments of Salinas Valley vegetables, plus fruits and vegetables from throughout much of the San Joaquin Valley.
Salinas Valley produce grossing – about $7500 to New York City.
While Washington state apple shippers are wringing their hands over the crop 
and profits that could have been, apple haulers probably won’t notice a lot of difference this 2012-13 season, since even after a hail reduced crop, shipments will be right in there with the average for the past five years.
One difference however, are the possibilities truckers may face with claims, unless you make sure the buyers know what is being delivered. There could be some hail damaged apples shipped to market this year; ones that look a little roughed up on the outside, but the quality is supposed to be good on the inside.
The apples with damage from hail will have “dimples” that turn brown and have a russetted look.
Some orchards totally escaped damage from the July 20 hail storm, while others were hit with varying amounts of damage. Much of the hits were taken by the Red Delicious variety.
The five-year average for Washington state apple shipments has been 100 to 110 million cartons. Before the hail storm, shippers were looking to move as much as 120 million cartons of apples this season. Loading opportunities are still expected to be good, despite the predictions of 10 to 25 percent of the crop being lost.
Updates on the amount of damage to apples from the hail storm are expected to come out within the next week.
Much of the USA is sizziling in triple digits and number 2 diesel prices, while not at record levels, are still high enough to make it difficult for 
a lot of owner operators and small fleet owners to make ends meet.
For example, the Flying J Truck Stop here in Grand Forks, ND has number 2 diesel fuel for $3.83 per gallon. That is above the national average for diesel this week, which is at $3.79 per gallon.
Duane Riendeau, 65, was an owner operator for 32 years. Five years ago he became a company driver for Troy Pecka Trucking Co. Inc. of East Grand Forks, MN. He sold his equipment stating trucking has become “too costly” with all of the government regulations and with the price of diesel fuel pushing $4 per gallon. He knows several owner operators personally who are just barely making it, because freight rates are not keeping up with costs of operation.
Although Randy Boushey of A&L Potato Co. Inc. in East Grand Forks, MN still has his CDL and continues to own three 18 wheelers, he only uses his trucks for deliveries within a 300-mile radius. His potato packing and shipping company has customers well beyond the 300-mile radius and he sees more late deliveries due to aging equipment with mechnical problems. He cites high fuel costs as one of reasons truckers are delaying replacement of tractors and trailers.
It seems there’s alway excuses for diesel fuel being higher than it should be, despite Americans reducing their fuel consumption. Whether it is problems with refineries in Illinois and Indiana cutting their out put, or economic woes in Europe, crazies in the Middle East pulling their stupid terrorist stuff, or any number of other factors – the reasons seem very few for prices to drop.
The experts and observors of oil prices are genenerally saying diesel prices will only go up until after Labor Day, before it starts dropping; unless of course some idiot in Syria, Timbuktwo, or someplace else does something which may not even be remotely connected to the price of oil. But that doesn’t seem to matter.
California apple and pear shipments have started, joining bell peppers and host of other veggies, stone fruits and grapes being 
shipped. Across the country, summer produce shipments also are moving in good volume as well, although few can match the volume coming from California.
California apples for the new shipping season are under way from the San Joaquin Valley, while the new pear crop is providing loads from the San Joaquin Valley as well as the Sacramento District. Both items join a host of San Joaquin Valley produce items ranging from peaches, plums and nectarines to veggies such as sweet corn, and bell peppers, among others, as well as table grapes and melons.
Looking ahead to fall citrus shipments, California volume is forecast to be pretty normal. Mandarin loadings get underway by mid October, while navel oranges should start shipping in Novemember and continue through May 2013. The 2011-12 navel crop amounted to 88 million 40-pound cartons being shipped. The Valencia orange loadings are winding down and about 28 million cartons will have been shipped by the end of the season.
Michigan
Michigan is a leading shipper of blueberries, which are moving in good, steady volume. There’s also a wide array of vegetables such as sweet corn, bell peppers and squash being loaded on trucks.
New York
Cabbage loads are now coming out of Western and Central New York. Other vegetables will soon be available for hauling.
Eastern Shore
The tri-state area of Delaware, Maryland and Virginia have had a good growing season and steady shipments of vegetables and melons are now occurring.
Eastern Shore produce is grossing – about $1700 to Chicago.
Michigan produce – about $2700 New York and Hunts Point.
California’s San Joaquin Valley produce – about $7500 to New York City.
I made my first trip to the Red River Valley, the nation’s largest red potato growing area, in December 1996. I thought when this southern 
boy who found himself in -40 degree F wind chills, I was going to freeze to death! Located on the North Dakota, Minnesota border, I have been back every year since, only in the summertime.
Whether I’m spending time with potato shippers, or truckers up here, there are no friendlier people to be found anywhere.
Getting to the Red River Valley with a load, whether going to Fargo on the southern end of the valley, or a small town located near the Canadian border, or any location found between the eastern edge of valley in far Western Minnesota, or approximately 100 miles to the other side of the valley in North Dakota, often isn’t easy. It can be as challenging as getting a load of freight from the Midwest to the West Coast.
Right now, grain haulers are taking center stage as the harvest in the valley is well underway. However, shortly after Labor Day, the huge combines will give away to digging potatoes from the region’s rich, black soil.
The only potatoes in the region currently being harvested are out of Big Lake and Long Prairie, MN. While the spuds are grown in Minnesota, many, if not most of them are actually being sold by the larger shippers in the Red River Valley such as Associated Potato Growers, Grand Forks, ND; NoKota Packers, Buxton, ND; and A&L Potato Co., East Grand Forks, MN. These companies often arrange the transportation as well.
The harvest of Red River Valley potatoes typically lasts from September into October, or until the first hard frost kills off the remaining potatoes in the fields.
Patrick Sammons of St. Joseph, MO is a driver for Grand Forks based Britton Transport. “It’s tough sometimes getting loads into the valley,” he admits.
Driver Jerry Smedly of Staples, MN says he hauls more french fries out of the valley than he does fresh red potatoes. He hauls for Attendorf Express Inc. out of Minto, ND.
Dave Moquist grows and ships red potatoes out of Crystal, ND. His company, O.C. Schulz & Sons, has found truck supplies to be adequate the past couple of years. However, potato shipments also have been down, requiring less equipment for hauling.
Paul Dolan of Associated Potato Growers, large potato cooperative based in Grand Forks, ND, says trucks were in tight supply last fall. He believes part of the reason is the oil boom taking place in the Western region of North Dakota. It is taking drivers that normally would be hauling other things.
Overall, red potatoes from the valley for the 2012-13 shipping season, are expected tobe normal at best. Warmer weather and less rain are expected to cut total shipments this season. — Bill Martin
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