Posts Tagged “feature”
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.
Vince King has been trucking since 1978 hauling dairy products, frozen 
chickens and fresh produce. He loves hauling refrigerated freight, but dislikes trucking in California and the attitudes of many drivers.
A resident of Cuba, NY, located near Buffalo, HaulProduce caught up recently with Vince at the Pilot Truck Stop at Warner Robins, GA. “I haul dairy, chickens and produce — it really doesn’t matter to me which one. The only difference is setting the temperature (on the reefer unit) right for the different loads. I’ve grown to love that reefer unit over the years that’s behind my truck,” he relates.
Vince drives a 2009 blue Freightliner housing a 470 h.p. Detroit, equipped with a 13-speed transmission. He pulls a 53-foot Utililty trailer with a Thermo King unit.
“I love this truck. My boss asked me what I wanted and what color. My previous truck was a 2004 black Freight, says, Vince, who drives for Sargent Transportation Lines Inc. of Cuba, a small fleet with 20 over-the-road trucks. “The money is good and they keep me hopping or I wouldn’t still be here.”
Vince, who has been with Sargent 16 years, had just delivered dairy product in Florida the previous day, which had three drops. He was on his way to pick up frozen chicken in Doraville, GA for delivery to U.S. Foodservice near Albany, NY. He also hauls potatoes and onions off of the West Coast.
“I don’t like California. I used to run it every week, but now there is just too 
much ‘crap’ out there.” Vince cites all of the excessive regulations on truckers in California, adding, “You can’t sneeze there without getting a ticket. I just took my son out there on a trip. I’ve decided I just don’t need the hassles.”
Since becoming a trucker 34 years ago, Vince has considered buying a truck, but has always decided to remain a company driver. “I thought about becoming an owner operator years ago, but right now I wouldn’t even consider it because of the economy. It’s really hard to find a good company where you can make it with a lease. Over the years I’ve seen what these companies can do, especially with these lease-purchase plans.”
One of the best aspects of trucking is simply being out on the road, Vince says. He typically leaves the house on a Saturday evening or Sunday morning to pick up a load. He is usually home by Friday at the latest. If he’s doing an East Coast run, he’s usually gone only a couple of nights.
His least favorite part of trucking, which he dislikes even more than the excessive regulations, are the attitudes of a lot of drivers.
“I don’t even mean just the new breed, but some of the older drivers as well. Sometimes it is just sickening,” he states.
What is his biggest challenge in trucking? “Trying to figure out what the other drivers are going to do before they do it. A majority of this is with the older drivers, the four wheelers and the campers,” he says. “To a certain extent there is a lack of professionalism in trucking. I”m not just talking about the baby boomers, because you have the ‘me’ generation. It’s me, me, me. That is not the way things should be done.”
Better treatment of truckers was a primary theme at a session titled, Transportation Best Practices for the Produce Industry, 
held during the annual show of the United Fresh Produce Association, May 1, at the Dallas (TX) Convention Center.
The theme of the meeting is based around a set of transportation guidelines released earlier this year by The North American Produce Transportation Working Group (NAPTWG). The group has released a document combining various transportation guidelines for the produce industry to use, with the end result being better treatment of truckers leading to more refrigerated equipment and drivers being available to haul fresh fruits and vegetables.
A member of the audience tells the panel there is a shortage of 200,000 drivers and “we’ve got some problems coming up” with an improving economy.
Panel member Ken Lund, vice president, support services, Allen Lund Co., said the average age for truckers is over 55, and not that many drivers are entering the industry. There are 2.7 million Class 8 trucks and 98 percent of those are companies with 10 trucks or less. Most refrigerated produce haulers have a one truck operation, he says.
“We want drivers to be treated well,” Lund states. He adds that today more retail receivers are treating drivers better.”
Lund notes the USA is looking at an eight and one-half to nine percent unemployment rate, yet there are “tens of thousands of openings” in transportation. “But there are not a lot of people entering the industry and we want to make it better for them.”
He points out the Allen Lund Co. has a transportation education program for drivers providing them various kinds of information such as how to take the pulp temperature of produce to ensure product being loaded has been pre-cooled.
Panel member Frank Swanson, category manager, U.S. Foods said, food safety is a concern for his company. “We look at how to get transportation companies that take care of the product and maintain the correct temperature.”
Panelist Ken Nabel, president, Kingston and Associates Marketing, LLC points out a lot of military personnel are coming home, receiving discharges and should provide a lot of potential for jobs as drivers.
Another member of the audience asks the panel what is the leading cause of produce loads being rejected?
Bret Smith, director of commodities procurement, Safeway Inc., responds the majority of kicked loads results from temperature problems with fruits and vegetables, as well as issues relating to quality.
“We need to know if a problem exists in route, not when the load arrives,” Smith says. He adds having a driver check list, plus ensuring the driver has been trained to “check all components” associated with the load helps to avoid problems with claims.
Lund points out that there are seperate points on the NAPTWG website for shippers, truckers and receivers. Those points can be found at: www.naptwg.org
What is the number one issue for produce transportation in 2012?
Nabel believes it is the cost of diesel fuel.
Smith cites “having good companies (carriers) with a good driver base.” He also says the high cost of goods Safeway must purchase for its stores is a concern. On the plus side, Smith believes docks used to consolidate loads are becoming more efficient, which is making consolidated loads more attractive to drivers.
Lund, obviously looking weeks ahead to the peak spring and summer shipping season for produce states, “When rates get high, a lot of people jump into the market (especially) when rates hit $10,000 from California to New York….Prices (rates) have gone up. Ten years ago it was $3,000 from California to Atlanta; now it’s $10,000. If we had those prices 10 years ago….” he notes
The transportation broker then adds, “Thre are a lot of shady brokers out there and a lot of double brokering going on.” Lund relates a lot of times a shipper will list the Allen Lund Co. on the document as a shipper. “We are not a shipper, we’re a broker. This is where a lot of theft occurs, as well as double brokering.”
On another topic, the panel discusses railroads and its role in hauling fresh produce.
Smith of Safeway says the retail chain has not been very successful using rail, although the company continues to consider it.
Swanson of U.S. Food cites the service of RailEx, a company working with major railroads, providing coast-to-coast unit trains. He likes the RailEx “door-to-door” service, but says over all the service is very limited.
Lund points out that only one to two percent of the nation’s fresh produce is shipped by rail.
“Some people on Capitol Hill think 50 percent of produce should be on the rails. But the infrastructure changes would be monumental,” Lund says.
Ending the session was an audience member asking the panel about 18 wheelers being powered by natural gas.
Lund says there has been a lot of testing in this area, however the infrastructure for cross country trucking is not available. Most trucks using natural gas are doing local hauls.
(For more information on the NAPTWG, see press release published on HaulProduce, titled, Transportation Group Releases Best Practices. It ran on Jan. 17, 2012)
For owner operator Ruben Velez, nothing has been given to him. He has worked hard all his life.
“I didn’t finish high school because I grew up working to help my mother pay the bills,” Ruben says.
HaulProduce caught up with the resident of Orlando, FL several weeks ago at The Polish Shop, located at exit 2 along I-75 at Lake Park in far southern Georgia. Ruben has his 2012 386 model Peterbilt polished here about three times a year. This blue beauty, with only 90,000 miles, houses a 455 h.p. Paacar diesel, featuring a 13-speed tranny, and a 242-inch wheelbase. He pulls a 53-foot Utility trailer mounted with a Carrier reefer unit.
Ruben primarily hauls tomatoes out of Southern and Central Florida. He had recently delivered a load of Florida tomatoes to New Jersey. He was returning to Florida with a load of dry freight. It had six drops. He’d already unloaded some of the freight in Atlanta, with further drops set for Lakeland and Deerfield, FL. Then he planned to pick up more Florida tomatoes to haul back north.
Ruben, 43, started trucking as a company drive at age 18. He’s been an owner operator for the past 18 years, owning nothing but Petes. Although he hauls a lot of tomatoes, his favorite loads are with frozen foods. He cites no particular reason, except, “I’ve always hauled it.”
Among his concerns as a small business owner, is the high cost of diesel fuel. “The high price of diesel is hurting me and everyone,” he notes. As for fuel surcharges, the trucker says he receives them, primarily on dry freight, but it is often too little and lags behind the increasing cost of fuel.
Ruben states trucking is becoming more difficult, not only for new entries into the profession, but the veteran drivers as well.
“This (trucking) industry has ate up a lot of guys,” he says. “If you’re entering this industry, go to work for a carrier where you have the benefits. The fuel, tolls, insurance, etc.; all of these costs are very high.”
Asked about his biggest challenge as a trucker, Ruben cites dealing with the inexperienced drivers on the road, both four wheelers and operators of the big rigs. “A lot of them are out there driving while texting, talking on their cell phones; not paying attention.”
His favorite aspect of trucking is a very common answer among long haul drivers — being on the road, enjoying the scenery and just seeing a lot of different things.
As for keys to surviving and making a living in trucking, Ruben cites not only being willing to work hard, but to deal with good, honest shippers, brokers and receivers. He uses his own operating authority to get most of his dry freight hauls, while using reliable, honest truck brokers to obtain his produce hauls.