Posts Tagged “feature”
Normally we would see a bump in rates for hauling produce as the Fourth of 
July holiday approaches – when Independence Day falls on any day but Wednesday. This is not to say there will not be a increase in produce rates, but some observers are saying it may not be as high, or may not even occur this year for the holiday. Regardless, strong demand for refrigerated equipment will continue before and after the Fourth, and rates are expected to remain healthy in the coming weeks.
In Southeastern Arkansas, peak tomato shipments are continuing. While it has been an excellent growing season, triple digit temperatures have moved in. If the extreme heat continues the mid July conclusion to tomato shipments may happen even before that.
In Virginia, some are not aware the state ranks fourth nationally in tomato shipments, and 6th nationally in potato, apple and snap bean volume.
Moving to the Northwest, Washington state cherry shipments are in heavy volume. Loadings should continue until September and the state is on a course for record shipments.
In California, rates have had only minor fluctuations since early June. The Salinas Valley has lighter than usual volume with broccoli and cauliflower, plus lettuce shipments have been hampered as East Coast receivers took advantage of coastal shipping areas such as New Jersey, which started weeks earlier than normal. This put Eastern lettuce shipments on a collision coarse with West Coast lettuce shipments. Eastern receivers could save $7 to $8 per carton on lettuce, just on shipping costs, when they purchased eastern lettuce as opposed to that product from California.
Salinas Valley vegetables – grossing about $8500 to New York City
As California table grape shipments will soon be starting from the San Joaquin 
Valley, it is a good two-week swing from a year ago, when the vineyards were 10 to 14 days later than normal. This year, the product is being shipped a few days earlier than normal – and two weeks or more earlier than in 2011. Projections call for 101.6 million, 19-pound boxes of California grapes to be shipped, up 4.5 million cartons from a year ago.
Stone fruit shipments are coming out of the Southern San Joaquin Valley in light to moderate volume and will pick up in volume quickly as the harvest moves northward. The Bakersfield area is shipping potatoes and carrots.
California cherry shipments from the northern part of the valley are winding down, as Washington state will soon take center stage with loads of cherries.
There are still grapes from Mexico and California’s Coachella Valley being shipped in volume. Those areas will still be providing loads into mid July.
One word of caution. There are reports of some red grapes from Coachella having splits, cracks and being low in color. Make sure whoever is paying the freight is aware of this situation before you load — and of course check for quality yourself at the loading dock.
Demand for trucks remains heavy from the Salinas Valley as many vegetables are in peak production. There’s also good volume with strawberries from the nearby Watsonville district. The Santa Maria area has lighter, but consistent movement with vegetables.
San Joaquin Valley stone fruit and vegetables – grossing about $8300 to Baltimore.
Bakersfield area carrots and potatoes – about $6800 to Atlanta.
Produce shipments on the East Coast are a mixed bag this year and some areas 
are shipping more normal volumes, with other areas doing less.
Shipments of New Jersey blueberries, along with vegetables continue to be loaded in normal volumes. Jersey peach loadings are ramping up and should be in peak volume soon, continuing through July.
Further south in the Mid-Altantic area, sometimes referred to as the Eastern Shore, Delaware, Maryland and Virginia are shipping a variety of vegetables, with more coming into play as we enter July. This area, however, has struggled over the years, as it tries to provide shipments during a gap between states to the south of it, and New Jersey to the north, which in theory is supposed to begin shipments when Delaware, Maryland and Virgina are finishing.
However, it’s a gamble every year and if the southern states are late coming in, or Jersey is early, the the Mid-Atlantic states tend to face poor markets, and fewer loading opportunities for produce haulers. As a result this area does not have as many shippers as it used to.
Meanwhile, there are fewer Georgia vegetables, Vidalia onions and peaches this year due to weather factors, although the vegetables were easily hit the hardest of the three.
Vidalia, Georgia onions – grossing about $3200 to New York City.
New Jersey blueberries – about $1800 to Boston.
Fred Plotsky, who with his staff at Cool Runnings, arrange about 8,000 loads 
a year, sees the biggest issue facing truckers is financing, followed by the rules and regulations on the industry. “However, he adds, “If you can’t get the financing, the rules and regulations don’t matter.”
The president of Cool Runnings, based in Kenosha, WI, says truckers are facing rising costs with everything from tires to fuel and labor. An engine overhaul that was $13,000 two years ago now costs $20,000 to $21,000. The mechanics who work on those diesel engines have hourly rates that have increased from $60 to $100 per hour.
While the produce rates have gone up in recent weeks, the price of diesel fuel remains high as well. For example, Fred says a truck averaging five miles per gallon, running 3,700 miles per week, at today’s diesel prices, that is costing $3,000 a week, which is hard to finance.
While Cool Runnings charges a two percent fee for advances on loads, Fred points out a lot of truck brokers charge three to five percent.
“The broker has to borrow to finance advance loads. The bank is not loaning you that money for free,” Fred states. “Financing is tight. You either pay the bank, or the broker for the cash advance. It is going to cost you more either way.”
It used to be the average cash advance was around $500 to $700 for fuel to cover a trip from Idaho to Chicago. Now the advances are around $1,500. “You are talking two percent of $1,500 when it used to be two percent of $700. The truckers have to find a way to finance this themselves, while the others who do not figure it out fall by the wayside,” Fred says.
Cool Runnings works with a lot of owner operators and small fleet operations. “The guys who used to have 20 trucks now own eight or 10. If he had 10 trucks, now he only has three or four trucks,” Fred says. “They just don’t care anymore. They’ll say, `I’m tired of fighting the rules and regulations and everything else.'”
One example of excessive government interference, Fred notes, are the CARB (California Air Resources Board) rules in California. The requirements, some of which have to do with reducing emissions, increase the costs of operation and is make it very difficult for truckers to comply, much less continue to operate profitably.
He knows one trucker who hauls potatoes and french fries between Idaho and Utah. That trucker receives a consistent, steady fair rate. The trucker also does not have to comply with California’s CARB rules.
“Now that those rules are stabilized, just don’t keep changing them,” Fred states.
Although it has been nearly 26 years, it seems almost like yesterday when Ifirst met Fred Plotsky. I was riding in a car with a friend and business associate named Gary Robinson in Highland Park, IL during a week I was working in Chicago. Gary had just sold his truck brokerage, Cool Runnings.
“How would you like to meet the new owner of Cool Runnings? He’s really a great guy,” Gary asked me. In a moment, Gary had Fred dialed up on his car phone. I met up with Fred later that day and the rest is history. We have been friends ever since.
Fred and I immediately found a few things in common. We both had an interest in produce trucking for starters. Both of us loved to fish. Fred goes after northern pike, especially on fishing expeditions to Canada, while this southern boy prefers the warmer climates and large mouth (you might find Fred reporting to work at the Cool Runnings offices in Kenosha, WI, wearing shorts in January).
Fred also has love for listening to radio, and only a few months earlier in 1986 I had launched the Produce Truckers Network and had two radio stations airing it — WRVA in Richmond, VA with Big John Trimble and WMAQ in Chicago with Fred Sanders.
Both of us are sports fans with Fred a great follower of the Chicago White Sox and the Milwaukee Brewers. He is forgiving of my support of St. Louis Cardinals.
Over the years I’ve learned to respect Fred as a loving husband, great father, little league baseball coach — and a fair and honest businessman.
It has sort of become a tradition with Fred and I to occasionally have lunch together — usually involving chicken wings and root beer. It was during such a recent visit, Fred shared some thoughts on Cool Runnings, which he has owned since July 1986, as well as what is happening with the trucking industry, and what he views as the major concerns and issues with the professionals driving the big rigs. — By Bill Martin
Record shipments of highly perishables, but high rate paying cherries are 
getting underway from Washington state, along with apricots and onions, and joining the late season apples and pears.
Cherry loadings start in limited volume from the Yakima Valley, but tonnage quickly increases. 23 million boxes are forecast to be shipped from Washington state, which should break the previous record by 3 million cartons….Apricot loadings are close behind starting in mid June, with peak movement occurring the first half of July.
The Evergreen state continues to ship apples and pears from the 2011/12 season, and remains the heaviest volume for produce. About 1,750 truck load equivalents of apples and pears are being shipped weekly from the Yakima and Wenatchee valleys.
Onions from the Walla Walla Valley should get underway the week of June 18th. The Walla Walla onion shipping area is located in Southeastern Washington and Northeastern Oregon. Primary shippers are located in or near Walla Walla, WA and Hermiston, OR.
Washington apples and pears – grossing about $6000 to Philadelphia.
NOTE: Apples, pears and apricots can be loaded on the same truck, but oder from the fruit can be absorbed by potatoes, onions and some other items. Source: TransFresh “Fresh Produce Mixer & Loading Guide.”
Since California rates shot upward on June 4th by $1000 dollars or more from 
California to the midwest and east coast, rates have pretty much maintained that level (around $6000 to Chicago and about $9000 to the east coast). Now the question is whether loads for the 4th of July holiday will take another jump. Since the 4th falls on a Wednesday, there are differing opinions whether rates will go any higher, as opposed to if the holiday fell on, say a Monday or a Friday, making for a long holiday weekend.
In California’s Westside District of the San Joaquin Valley, cantaloupe and honeydew shipments will be starting around Independence Day. Normal shipments are expected, although there’s plenty of apprehension among some melon shippers over the ramifications of the cantaloupe listeria outbreak last year with Rocky Ford region cantaloupe in Colorado. That outbreak adversely affected cantaloupe shipments for other production areas as many consumers stopped buying melons.
In Southern California, record shipments of avocados continue. The region is shipping about 30 million pounds of avocados weekly to points around the USA, with a total for the season expected to hit 415 million pounds!….California cherry loads from the Lodi-Stockton area will be winding down within the next week or so, which will end with a record of around 23 million boxes, up 3 million boxes from the amount shipped a year ago.
Meanwhile, there’s heavy volume with vegetables coming out of the Salinas Valley, and increasing stone fruit shipments from the San Joaquin Valley.
San Joaquin Valley stone fruit – about $5500 to Chicago.
Salinas Valley vegetables/Watsonville strawberries – around $9200 to Boston, and can be a few hundred dollars higher or lower depending upon the day of the week, demand for trucks, etc.
We are quickly approaching time for shipments of produce for the Fourth of 
July holiday. Since Independence Day falls on a Wednesday, a lot of consumers will only have that one day off work, although many do tie extra days off around the holiday.
But to help you try and plan your schedule so you can be home for the holiday, here’s a look at some shipping areas that will be pretty active a week or so before the Fourth, hopefully increasing your chances for faster loadings, transits and getting to your destination.
In the West, the Watsonville district will be the only California area shipping strawberries, but it good volume. The nearby Salinas Valley should be rockin’ with plenty of vegetable loads. The same goes for the San Joaquin Valley shipping stone fruit and vegetables.
In Washington, the eastern part of the state has moderate volume with blueberries, but better volume will be coming from Yakima and Wenatchee with late season apples from storage, as well as with cherries, with loadings at a peak.
At Nogales, watermelons from Mexico crossing the border have more than doubled over the past decade. Yet, loading opportunities are being limited, depending upon with whom one talks, because of the escalating drug cartel violence south of the border.
In Michigan, decent blueberry shipments are expected for the Fourth of July, plus vegetable volume is increasing.
New Jersey blueberry shipments will be supplying most Eastern markets for Independence Day. The state also is shipping vegetables.
In the Southeast, Georgia continues with Vidalia onions, Ft. Valley area peaches and vegetables from the central and southern part of the state.
Overall Florida produce shipments are down subtantailly by this time of the year, but Belle Glade is shipping a lot of sweet corn.
California rates to the East Coast topped $9000 this week, at least from the Salinas Valley, where vegetable volume is really cranking up, plus 
there is building volume with the nearby Watsonville district strawberries and other berries. Rates also have increased from other regions of California, ranging from the San Joaquin Valley, to Santa Maria and in the Southern part of the state. Truck supplies have definately tightened up, but so far, my sources are reporting you can get a truck, if you’re willing to pay for it.
In Arizona, rates remain strong as Mexican melons and table grapes are moving in good volume across the border into the USA.
If for some reason, you are stuck in New Mexico, the new crop of storage onions from the Southern part of the state are now being shipped. Rates are usually less on onions with a significant factor being you can haul them on flatbeds and other non-refrigerated equipment.
Texas remains active for produce loads, in large part thanks to Mexico. There are a variety of Mexican vegetables and tropical fruit crossing into South Texas. The Lower Rio Grande Valley is shipping watermelons, although weather troubles has reduced loading opportunities there. The Winter Garden District, just south of San Antonio is loading onions.
Salinas Valley vegetables, Watsonville berries – grossing about $9000 and more to Boston.
San Joaquin Valley stone fruit – about $4000 to Atlanta.
Nogales melons and grapes – about $5000 to Chicago.
New Mexico onions – $3000 to Chicago.
Texas produce – $3000 to Atlanta.
I arrived in Chicago yesterday (June 4) and the talk both with people in trucking and in the produce industry was the rates had shot up $1,000 on 
loads from California to Chicago. There sure was a lot of complaining from produce companies, but big smiles on the folks in transportation. It should come as no surprise to anyone. It happens around June 1st every year as produce spring shipments increase and refrigerated equipment comes into short supply, although trucks seemed to be available, if you were willing the pay the price.
The down side to the rising produce rates, is, as every year, the westbound dry freight rate are awful. Dry freight from Chicago and the Midwest is grossing only $2400 to $2500 to the West Coast — and some of it is even cheaper. That may pay for the number 2 diesel, but it’s not going to cover the cost of the driver, or the truck.
Another downside is be wary of companies with which you may not be familiar. Some receivers will look for any little thing to make a deduction from your load. I’m talking about things as petty, for example, as the product in your trailer being one degree off the recommended pulp temperture. That $1000 extra you thought you were making with the rising rates, isn’t going to look near as good when you are paid, if you face a deduction of $200, $300, $400 or more.
As of today, here’s what some loads are paying coming into Chicago.
From California to Chicago:
6 pick ups, five drops, grossing $7,000
5 pick ups, one drop, grossing $6400 (Think I’d take the next load instead, see the next one listed!)
Fresno, 1 pick up, 1 drop $6400
Nogales melons and grapes – $5000 to Chicago
West Texas (90 miles north of Laredo), potatoes – $2400 to $2500 to Chicago.
By Bill Martin
Special thanks to Eclipse Dist., Elburn, IL for the rate information.
Central Florida potatoes – $3000 to Chicago.
Supplies of refrigerated equipment from shipping areas c0ast-to-coast 
continue to tighten as seasonal fresh fruit and vegetable volume rises. The result is buyers of produce are being forced to pay higher freight rates and truckers now have the upper hand in rate negotiations.
Truck supplies are especially short in California, Nogales, South Texas and in Florida.
The truck supply situation will continue, and worsen, after Memorial Day as receivers replenish supplies.
California hasn’t even got cranked up yet with produce shipments, although they are certainly getting there. If you are a produce hauler, let the good times roll.
The week of May 21st there were already a few loads out Southern California, Santa Maria, as well as the Salinas and San Joaquin valleys topping $8000 to places like New York and Boston.
In Arizona, rates for Mexican grapes crossing the border at Nogales, increased the past week by double digits. The most extreme example was a 30-plus percent hike in rates to Dallas.
Speaking of Texas, strong demand for reefer loads out of the Lower Rio Grande Valley continues. There’s a lot of watermelons and other Mexican fruits and veggies coming into the USA.
In Florida, rates have been all over the board — especially for hauling red potatoes. If you hit it right when truck supplies are really short, you could gross $2000 MORE on a load to the Northeast. Most of the state’s watermelon shipments are coming from areas north of Orlando, with shipments now coming from Georgia.
Salinas Valley vegetables- grossing about $8200 to Boston with some loads higher.
Mexican grapes from Nogales – about $3400 to Dallas.
South Texas produce – about $5500 to Boston.
Florida potatoes – anywhere from $3000 to $5000 to New York.