Posts Tagged “Hunts Point Terminal Produce Market”
My first visit to the Hunts Point Terminal Produce Market was in February 1989. Over the past 25 years I have visited the world’s largest produce wholesale facility more than 50 times.
Having been to most of the nation’s major wholesale produce markets, New York City’s South Bronx mammoth is the most fascinating. Being so large it has the most activity, the largest volume of trucks – and produce – moving in and out of the market.
Whenever possible, I enjoy visiting with owner operators, small fleet owners and company drivers who are at Hunts Point. I’ve heard the stories of excessive long delays waiting to unloading, because a receiver is using their reefer unit as a free warehouse. I’ve been told about the unfair claims truckers face, especially on loads that have lost market value from the time it was bought until it arrives at destination. There also are complaints about the $20 gate fee, however, these are often included anymore as part of the freight rate.
While these problems still exist at Hunts Point, it seems I’m finding fewer trucker complaints. Granted, I am only able to talk with a minute percentage of the 130,000 truckers that go the market each year.
However, as transportation costs increase, and good, dependable service becomes more of a premium, it seems more produce receivers than in the past appreciate receiving a delivery on time and in good condition. In other words, you pay for what you get.
Trucks are in greater demand than ever. You hack off a driver, and he or she has other choices. They don’t have to deliver to Hunts Point or anywhere else. In talks with drivers at truck stops and other places, I used to hear as often as not, they simply would not go to Hunts Point because of traffic, gridlock, tolls and yes – treatment at the docks. I don’t hear it as often as I used to.
Hunts Point only has about one-third the number of wholesalers on the market compared to when it opened in 1967. I like to think that while the consolidations, mergers and acquisitions have resulted in fewer, but larger merchants – hopefully their growth resulted from good, honest businesses practices.
For whatever reasons, Hunts Points is a pretty interesting place to visit. — Bill Martin
(This is the last of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
At the Hunts Point Terminal Produce Market there are four long rows. On the ground floor are the sales offices and docks. Upstairs one can stand at one end of a hallway one-third of a mile long and the other end is so far away the walls, floor and ceiling appear to come together. On each side of the massive hallway are the offices of the wholesalers.
In 1967, the new Hunts Point produce market had 125 wholesalers receiving fruits and vegetables. Today, due to mergers, consolidations and companies falling by the wayside, there are only 40 wholesalers, although their operations tend to be much larger than in the early days.
The largest company on the market is D’Arrigo Bros. Co. of New York Inc., which has 30 units. However, it is even larger when considering the family owned operation also has 30,000 acres of farming in California and Arizona. At the same time D’Arrigo and other wholesalers service thousands of produce buyers from all walks of life on a daily basis.
In some form or another, they all are dependent on the reliable service of the trucking industry to be successful in their own businesses.
I’ve known Matthew D’Arrigo, vice president of D’Arrigo Bros. for nearly 30 years. The company has a great reputation not only in the produce industry, but with produce truckers who have delivered product to the operation. D’Arrigo knows the livelihood of the company depends in part on good, reliable service from produce haulers. His company treats truckers accordingly.
He speaks of the continuing rise in costs of transportation and recalls late June 2014 when some produce rates from California to New York City hit $10,000. Many produce folks who pay the freight rates don’t necessarily like the higher costs, but rationalize their thinking knowing their competitors are pretty much paying the same rate for a truck.
Wholesalers at Hunts Point tend to depend upon truck brokers and logistics companies to handle their transportation needs. Most wholesalers simply don’t have the time, expertise or inclination to arrange the trucks themselves. — Bill Martin
(This is the third of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
When the Hunts Point Terminal Produce Market opened in the South Bronx of New York City nearly half a century ago, there were high hopes it would be a rail delivery heaven. Even to this day, there are still those who have that dream.
When the 113-acre produce complex opened in 1967 plenty of receivers were anxious to try trains attracted to the lower freight rates. However, within five years, there had been a dramatic drop in rail usage. As late as 1972 Salinas Valley produce companies were shipping vegetables to Hunts Point via rail. Today, no Salinas Valley veggies are transported on tracks.
Hunts Point had become notorious for claims, whether justified, or not. Many of those claims no doubt were justified, because it was taking the rails so long to deliver the highly perishable produce. In reality, wholesalers using rails were shifting heavily towards trucks after WWII and this only excelerated as the interstate highway system development began in the 1950s. The popular so-called unit trains, practically became history.
Some rail tracks on Hunts Point over the years have actually been covered by buildings as lack of space became more critical.
Even today, some New York politicians and some in the private sector are pushing to increase rail usage, primarily based on reducing highway traffic and environmental reasons. For example, there is a push to have long haul trucks deliver produce to New Jersey and they “ferry” it over to New York. However, that would add an extra day before the perishable products are delivered. Each added day reduces quality and the value of produce.
Hunts Point has received a federal grant as well as monies from New York City totaling about $22 million to upgrade rail siding and a transfer dock at the market. Still, trucks will continue to be the main source of transportation. Why?
If nothing else, consider this. Despite Hunts Point receiving between 2,500 and 3,000 rail cars yearly, rail cars often take up to 18 days to arrive at the market from the West. Piggybacks regularly arrive in about six or seven days. A single driver owner operator commonly arrives in five days. — Bill Martin
(This is the second of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
As the world’s largest fresh produce Terminal, the Hunts Point Terminal Produce Market has about 130,000 trucks a year delivering fresh fruits and vegetables to its wholesale distributors.
With nearly $2.5 billion in annual sales, Hunts Point serves as a distribution hub for 20 million people in the New York City metropolitan area that covers about a 50-mile radius. At any one given time there are about 8,000 people on the market, located in the South Bronx. The wholesalers also distribute fresh fruits and vegetables to Canada and as far south as Florida, plus a number of other markets east of the Mississippi River.
The big rigs begin rumbling onto the market when it opens to truck traffic at 9 p.m. on Sundays and closes at 3 p.m. for its daily clean up. The Hunts Point gate fee for big rigs is $20.
Ironically, Hunt Point opened in 1967 primarily as a rail terminal, but now an estimated 75 percent of the produce delivered is by truck, with the balance by piggyback trailers. The majority of that “pig” freight is potatoes, onions and carrots.
Still, it is shipments by truck that allow Hunts Point to operate as efficiently as it does. Yet the volume of produce arriving at the facility continues to increase, and the 48-year-old complex has outgrown its capabilities to handle all the product it needs. As a result, wholesalers on the market own or lease about 1,000 refrigerated trailers for storage purposes. — Bill Martin
(This is the first of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)