Posts Tagged “freight rates”
Hauling fresh produce tends to provide much higher freight rates than dry freight, obviously because of the perishability of fresh fruits and vegetables, and the extra care required with temperature, humdity, air circulation in the load, etc.
The higher risk to which truckers are exposed, also includes the possibilites of claims that reduce a driver’s pay check, or even worse, having the load rejected.
The degree of exposure to problems upon arrival at destination can depend on the honesty and integrity of the parties involved. Did the shipper pre-cool the product? Did the driver maintain proper temperature settings? Did the buyer or receiver pay too much for that product five days ago when the order was placed, and now the fruit on the market is worth $2 a box less? All of these examples can lead to claims or rejections with produce loads.
There have been studies over the years including the recent one titled Comparison of Pallet Cover Systems to Maintain Strawberry Fruit Quality During Transport which provides some interesting information. For example, this research concludes that TransFresh Corp’s Tectrol process reduces fruit decay by increasing carbon dioxide (CO2) levels in pallets covered by bags.
With CO2 levels increased by 11 to 16 percent, Tectrol beats its competitors in the important area of decay in strawberries by up to seven percent following delivery and two days on the shelf.
So how does this translate into a reduction in claims and load rejections for the produce trucker, if there is less decay in product being transported?
“That’s an interesting equation,” states Rich Macleod of TransFresh Corp. , Salinas, CA. “No one will ever talk about that. No one gives us their data. We’ve never been able to prove that (fewer claims, rejected loads), because we get it (information) by hersay.”
Macleod says experienced drivers know if they pick up a load of strawberries covered with bags, they are confident there will be no problems with that load. The expert in controlled atmosphere loads has been told by retailers “…their strawberry program is much easier” since using Tectrol.
However, when he asks that customer for data relating to load rejection and claims for strawberries comparing shipments with and without CO2 infused bagged pallets, he hits a stone wall. Those receivers acknowledge the benefits of Tectrol, but refuse to provide any statistics.
(This is the last of a 6-part series featuring an interview with Rich Macleod, vice president, pallet division North America for TransFresh Corp., Salinas, CA. He has been with company since 1976, and has a masters degree in post harvest science from the University of California, Davis.)
The USA needs around 111,000 more drivers to move the nation’s freight, according to Doug Stobiber, vice president of produce transportation for L&M Transportation Services of Raleigh, NC. He was speaking at the produce industry’s largest gathering recently, the annual convention of the Production Marketing Association (PMA), held in Anaheim, CA
While Stoiber notes better pay and higher freight rates for drivers is important, he placed just as much emphasis on truckers being repected.
He points out there is a shortage of qualified drivers and it is only going to get worse, primarily because fewer younger drivers are entering the industry, combined with greater numbers of older truckers retiring. While the average age of the commerical driver is 48 years old, the ones under 30 years of age amount to less than 10 percent.
Current law requires commerical driver’s operating interstate be at least 21 years old. President Obama is in favor of permitting states to lower the age limit to 18 years old. While supporters of this proposal are looking at ways to increase the number of drivers with CDLs (commerical drivers license), opponents point out the high accident rate among teenage automobile drivers, saying they are too young and immature to drive a big rig.
Starting this year, the nation’s largest generation (baby boomers) are reaching 65 years of age. They are retiring at a rate of 10,000 each day.
Stoiber made some economic comparisions between hauling dry freight, compared to fresh produce. There are liabilities as a produce trucker. Those remain until the papers are signed and the receiver accepts the load. The use of a refrigeration unit on a trailer adds an additional $1,500 in costs to a coast-to-coast haul. Overall, there are fewer risks with dry freight. Even with all the economic factors involved in produce hauling, Stoiber emphasizes the need for the produce industry giving drivers more respect. This will go along way in attracting more drivers to haul produce.
“Truckers have been viewed as obstacles to doing business instead of partners in the supply chain,” Stoiber said.
He encouraged the audience to pay higher freight rates and to think in terms of price per consumer unit instead of $1,000 per load. It comes down to more than just a good freight rate. Loyalty and respect are very important to truckers, he said.
Stoiber also addressed issues brought forward by a group encourging better practices in dealing with produce truckers. The North American Produce Transportation Working Group (NAPTWA) earlier this year released guidelines for making fresh produce hauling more attractive. Tips range from decreasing detention time when loading and unloading, to allowing drivers to watch loading.
The best practices are regularly reviewed and updated as federal regulations and other factors change the way truckers are allowed to operate, said Stoiber, who is a member of NAPTWA. The best practices are free on the working group’s website at www.naptwg.org.
There will be a half dozen fresh potato shippers up and running in the Red 
River Valley of North Dakota and Minnesota by the end of this week. That is a few more than typically run in mid-September, but with an early wrap-up in Big Lake, MN, demand is quickly shifting to the Red River Valley. Cooler temperatures this week should speed the harvest even more.
In North Carolina, the earliest shipping of cured sweet potatoes got underway September 17 from the new crop. However, some shippers will be shipping the old sweet potato crop through September….North Carolina leads the nation in sweet potato volume, which comes off of 64,000 acres from various parts of the state.
Sweet onions from Peru are arriving at various USA ports. Arrival of asparagus from Peru also are occurring, and should peak between now and into October.
Washington state is now shipping its second largest apple crop on record, estimated to be nearly 109 million boxes.
In California, pomegrante shipments are underway. It joins a host of more common produce items ranging from table grapes and stone fruit in the San Joaquin Valley, to veggies from the Salinas area…..The Santa Maria district is shipping a wide variety of berries and vegetables, although not in the volume found around Salinas. Freight rates fromt he Santa Maria district have risen slightly, while most other areas of the state are showing much change in rates, indicating adequate truck supplies.
Salinas Valley produce – grossing about $7200 to New York City.
Washington state fruit – about $4000 to Dallas.
Eastern North Carolina sweet potatoes – about $2250 to Chicago.