Posts Tagged “Hunts Point”
The U.S. Department of Agriculture (USDA) has cited Ven-Co Produce Inc. of Bronx, N.Y., for failure to pay for produce. Ven-Co is located on the Hunts Point Wholesale Terminal Market.
The company failed to pay $1,559,892.79 to 26 sellers for 210 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, the USDA and Ven-Co Produce Inc. have entered into a consent decision and Ven-Co Produce Inc. cannot operate in the produce industry until Feb. 15, 2014, at which time it may reapply for a PACA license. It is not known whether Ven-Co owes money to truckers for services. Such transactions are not taken into account by the PACA.
In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.
Unfortunately the PACA does not offer protections to produce transportation entities who deliver fresh fruits and vegetables. Whether you are faced with an unfair claim, your load is unfairly rejected, or you are not paid for your services, you are pretty much at the mercy of the produce receiver. Of course, you can file a lawsuit where the alleged violations occur, but then you face the high cost of litgation, and have to make court appearances in a venue that may be thousands of miles away. In other words, it usually is not worth the time and effort.
How much time and money is lost every year by produce haulers is not known. But talking with people in transportation, it is significant. The produce industry has fought tirelessly for decades to avoid having truckers receive the same protections they receive under the PACA.
If there’s something I’d be willing to bet the farm on – if I had one – it would 
be that the Hunts Point Terminal Wholesale Market – at least in my lifetime, will never leave the South Bronx for New Jersey, or anywhere else.
This once again comes to mind as New York City and the governing body of the world’s largest wholesale produce market – the Hunts Point Terminal Produce Market Cooperative, have agreed to a 90-day extension for exclusive negotiations to continue trying to reach a long-term lease. In essence, this gives the involved parties through May to negotiate.
While New York City certainly doesn’t want Hunts Point to move its facilities to New Jersey, which keeps offering it tax incentives to do so, it’s not going to happen. New York City loves the taxes it receives from the $2 billion in annual revenues Hunts Point generates. There are 47 vendors, primarily wholesale receivers and distributors, on Hunts Point, and they love the location. It is situated in the middle of America’s largest concentrated population. The last thing they want is a wholesale market in Jersey, and having to distribute fresh fruits and veggies to customers in New York City, which would require crossing the gridlocked George Washington Bridge, Lincoln Tunnel and countless other thoroughfares going over and under the giant Hudson River.
While it might be a long haul produce trucker’s dream delivering product in New Jersey rather than the South Bronx, it isn’t going to happen. The only reason the Hunt Point folks even pretend to want to move to Jersey is as a negotiation tool to leverage a better deal with New York City, who actually owns and leases Hunts Point.
Even when the recent deadline for a Teamsters strike at the Hunts Point Terminal Wholesale passed and the local’s workers kept right on working, I wasn’t a bit surprised. Not only has there not been a work stoppage over the past 25 years, I’m familiar enough with the wholesalers, and particularly their leaders, to know if it’s at all possible, a strike would be avoided. It was. A new contract was reached.
Nothing is more critical to the tenants on Hunts Point than to keep those 53-foot reefer units rolling into the terminal.
No trucks, means the wholesalers lose customers (retail supermarkets, foodservice, etc.) who decades ago decided to buy directly from produce shippers whenever they could. These customers, as is the case with terminal markets across the United States, often buy 70, 80, 90 percent of their fresh fruits and vegetables direct – primarily because they see cutting out the middlemen as saving money. Of course, wholesalers make good arguments such as a produce market offers wide selections of product, ranges in quality, color, taste, size and even price advantages.
My first visit to Hunts Point was about 25 years ago and I estimate I’ve been back there 50 times since. During this period I always made it a point to visit with as many truckers as possible who were delivering fresh produce on the South Bronx market. I also got to know many of the Hunts Point wholesalers on a first name basis.
Through the years Hunts Point developed a horrible reputation in the trucking industry. Complaints ranged form kicked loads, phoney claims to get reductions in freight rates, to delays in unloading, many times as an excuse for wholesalers to take advantage of free refrigerated warehousing at the expense of the driver. Then there were issues ranging from lack of restroom facilities to restaurant accomodations.
Over the years in my talks with drivers and wholesalers, many of these issues have been addressed. Now when talking with truckers about Hunts Points, there stil complaints, but I also hear a lot more good things than I used to. Driver shortages, refusals to return to deliver to wholesalers who “dump” on you, tend to change things. If these issues do not improve, then trucker is at fault for returning to take another “beating.”
When you get down to it, Hunts Point in some ways is no different than other wholesale terminal markets. Some companies are simply better than others whether talking about their dealings with transportation, or dealing with their suppliers and customers.
One consistency I’ve noticed over the years, is the people who are leaders on Hunts Point such as Matthew D’Arrigo (D’Arrigo Bros. Co. of New York) and Myra Gordon, both of the Hunts Point Terminal Produce Cooperative Market, are first class individuals. I could also say the same about a number of other people at Hunts Point.
When you have people of intergrity in leadership positions, I knew if there was any way a union conflict could be resolved, it would be accomplished. It’s also another reason why some truckers have fewers complaints about Hunts Point.
Union workers at the Hunts Point Terminal Wholsale Market in Bronx, NY have not went on strike in 25 years, but they are threatening to if a labor agreement is not met with market representatives. If you are on your way to the nation’s largest wholesale produce receiving facility just be aware the laborers are saying they’ll strike at 12:01 a.m. on January 17th.
Negotiations are continuing and you can bet Hunts Point wholesalers will do what it takes to stay open even if the strike occurs. How smoothly trucks would move in and out of the market is something to keep an eye on.