Posts Tagged “Keeping It Fresh”
By Michael Patrick, ALC Corp.
Transportation and analytics go together like peas and carrots. As technology continues on an upward trajectory with the implementation of artificial intelligence and machine learning, transportation companies will have to continue to adapt their environments to use this technology to their benefit. We currently use basic metrics to help our customers, managers, and brokers be as effective and efficient as possible. We combine our data with multiple data sources to get an overall market picture.
As a third-party transportation company, we use business intelligence and analytics in a multitude of areas. Market trends are used to help us bid spot market freight and rate prediction engines to help forecast rates on customer bids. Executives and managers use data and analytics to conduct customer, carrier, and employee reviews on a quarterly basis.
Customers and carriers benefit from Allen Lund Company conducting business reviews that show them not only trends in the overall marketplace, but also identify areas where they may reduce costs and thoroughly streamline their transportation. We use things like loads, customer spend, weight and pallet analysis, lane and cost analysis to create a great story for our customers and carriers.
One example comes to mind of ALC using data and analytics to help a customer reduce costs within their transportation department. We were asked to help this customer with a market analysis on their lane set. We ran the customers rates and market rates and showed them which areas to reach out to the incumbent carrier in order to adjust their rates to market levels. Some of these rates went up, and some went down. Overall, the customer felt like they not only got better rates, but also better service from their carrier. Win-win for everyone involved.
As technology continues to grow, we will have to stay ahead and evolve quickly in order to keep up with our customer and carrier demands. Allen Lund Company is committed to keeping up with the markets and to keep our customers, carriers, and employees up-to-date on all current market trends. The Business Intelligence team here at ALC will continue to push the envelope on what is possible with analytics.
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Michael Patrick is the Director of Business Intelligence and has been with Allen Lund Company since January 2018. He graduated from Winthrop University with a BS in Marketing in 1998 and earned his MBA from The Citadel in 2002.
michael.patrick@allenlund.com
By Steve Hull, ALC Special Projects
I recently celebrated my 27th anniversary working at Allen Lund Company. So far, my career has included many different job titles and roles, from transportation broker to management positions and now to my current role as special projects business analyst. I’ve seen firsthand how the use of data in the supply chain has grown and evolved over that time span.
When I started as a transportation broker working in the Los Angeles branch office in 1996, emails were rare, and the internet was still a ‘new thing’ we were all trying to figure out. Customers tendered loads to me via fax machine, and tracking and tracing a load amounted to a phone call every few days from the driver. If there were problems after hours, the drivers all had my home landline phone number to call! And we gave directions to drivers via atlases and the trusty Thomas Guide. The only real data we used was either counting up the piles of paperwork on your desk or tallying how many loads you helped a trucker haul in a month.
Things evolved when I was promoted to assistant manager in the Portland, OR, branch office in 1998. To help be more connected to data and information, I convinced the team we needed to upgrade to mobile phones and then Palm Pilots a few years later. That way, we could better monitor pickup and delivery ETAs and update our customers.
Then, as general manager of the Portland office in the early 2000s, data-driven principals really took off. Analytics around load volumes, pricing trends, and metric-driven scorecards started to be commonplace. We started using customers’ TMS modules, and ALC brought our solution to market in AlchemyTMS. Fax machines and print-outs went away, and e-faxes and digital PDFs became the norm. We also eschewed the room full of filing cabinets in favor of hard drives and servers. When the iPhone came out in 2007, I knew right away that the future had arrived! The ease at which you could pull up data to share with your customers was (and is) astonishing.
I held that branch manager title for 20 years, and then it was time to hand off those responsibilities and put my experience to use in a new way. In early 2022, I took on the role of business analyst within ALC’s Special Projects team. I now work daily with our team of talented folks who help keep our broker’s eyes and ears aware of all the requirements of our customers and carriers. Dashboards, scorecards, maps, and spreadsheets are the tools of our trade. And we’re preparing for the future as well. APIs and AI programs will surely play a big role in what’s to come in the next decade.
Data has proven to be the key to success for many parts of the supply chain in my past 27 years, and I’ve enjoyed my front-row seat to this proliferation of information. I can’t wait to see what comes next!
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Steve Hull is a business analyst working for the Corporate office, and has been with the Allen Lund Company for 27 years. Hull is a graduate of the University of Southern California, completing a dual major in political science and U.S. history.
steve.hull@allenlund.com
By Iyer Amruthur, ALC San Antonio
One of the most refreshing things on a hot Texas (or hotter Arizona!) day is an ice-cold sarsaparilla soda, or at least I’ve been told. My generation grew up during one of the peak periods for soda, candy, snacks, and a cornucopia of “consumables” that tasted great, but usually ended up in more than a few dentist visits. It’s safe to say a lot of us are still on the “high-fructose”, “high carbonation” train; admittedly, I was the same way. I gave up soda in my youth because I always felt the sugar crash pretty rapidly, and eventually, many sugar-based products began to weigh down my digestion. Fast forward to the current date and I’ve almost entirely cut out refined sugars from my diet. So what’s been my go-to fix while being healthy, you ask? Well, maybe you’ve heard of nootropic beverages?
Instead of being taste-centric, these beverages are purchased for their perceived nutritional benefits. In the same way you might drink/consume pre-workout supplements, or take a shot of apple cider vinegar per a daily schedule, you would now pursue these commercially available products. Some of my favorite examples include companies like Soylent, Huel, and Ka’chava for their dedication to nutrition/complete meals as a drink. They provide consumers with a bag of powdered food that prioritizes all the vitamins, minerals, carbs, protein, and fats humans need to operate (just add water!). Another example is Kin Euphorics and several similar companies that have created “mocktails” that taste similar to a non-sweetened cocktail; the drinks are chock-full of roots, herbs, vitamins, and more, meant to enhance mood, cognition, and digestion.
The category that was so dominated by the sensation of taste has now become a laterally divided market between taste and utility. The latter has become popular with younger demographics and those concerned with improving their health or creating better consumption habits in general. While these drinks are often smaller in volume and higher in price, they have been flying off the shelves at most common stores (Walmart, Costco, Kroger, etc.). So, what’s popular, healthy, and tasty?
Enter Kombucha! Kombucha is what I call “the produce of beverages,” and for good reason. Kombucha takes black tea, sugar, water, and a culture of bacteria (think yeast for bread) called a S.C.O.B.Y. (symbiotic culture of bacteria and yeast). These mix together, and over time, they ferment into a delicious and bubbly beverage. Most commercial retailers pasteurize any alcohol retained during the process and ship it to major stores to be sold as a healthy, tasty, and unique alternative to sugary sodas.
It’s safe to say this is going to be a growing market, and we may see “soda” spots be replaced with kombucha, meal-based-beverages, smoothies, pressed juices, and even some drinks that might twist your tongue from the flavor profile, but deliver a calm nights rest.
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| Iyer Amruthur is a national sales manager in the ALC San Antonio office and has been with the company for three years. He attended The University of Georgia where he obtained a bachelor’s degree in Marketing, with a minor in Communications. iyer.amruthur@allenlund.com |
By Ken Cavallaro Jr., ALC Boston
Pixar Animation Studios brought mental health to the big screen with its award-winning Inside Out, a movie highlighting the conflicting emotions humans face during major life events. These warring emotions can be especially difficult for truck drivers. Tasked with driving an 80,000-pound vehicle loaded with potentially over $250,000 worth of product through endless stretches of road and frustrating traffic snares for twelve hours a day is further complicated by carriers missing quality time with family and friends, disrupted sleep patterns, and often a less than stellar diet.
A survey by the National Library of Medicine shows almost 28% of truckers surveyed reported suffering from loneliness on the road, while 27% reported depression, 21% reported chronic sleep disturbances, 14.5% reported anxiety, and 13% reported other emotional difficulties. According to the Center for Disease Control (CDC), “truckers experience higher rates of obesity, diabetes, anxiety, depression, cardiovascular disease, divorce, drug use, and suicide.” After celebrating Truck Driver Appreciation Week last month, it’s important that we continue recognizing and advocating for these essential workers who contribute to making our day-to-day lives possible.
Ronald Allen of Points West Express, a second-generation truck driver, has traversed the country for the past 49 years. According to Ronald, missing family events caused the greatest stress during his lengthy driving career. He also attributes difficulty finding time to sleep as contributing to his high-stress level.
“Following what my father did, this is all I knew, which was the best way to provide for my family, and what got me through the day was knowing they were financially ok,” said Ronald.
At Allen Lund Company, we pride ourselves on providing exceptional service to shippers and growers nationwide. Supporting truck drivers that help us achieve this goal – hard-working people like Ronald – is a top priority at our company. As logistics specialists, it is important to remember the challenges drivers face and be sensitive to their struggles so we can help them feel like the respected and valuable members of the supply chain that they are. We might not be able to control their diet, exercise, or sleep habits, but we can listen attentively, share kind words, and practice patience.
Everyone should take a few extra minutes to engage with drivers and ask about their day. In the long run, our extra effort to treat a driver as a person and not just a load number will also benefit our customers. A driver who feels respected will most likely be calmer, more attentive, and ultimately deliver a load with more care. We might not be trained psychologists specializing in mental health, but kindness and sensitivity can go a long way to easing the emotional burdens of our drivers. Knowing we value the person behind the wheel as more than just another load might just be what a driver needs to settle those shifting emotions and safely deliver on time.
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Kenneth Cavallaro, Jr. is a carrier manager in the Boston office. He began his career at the Allen Lund Company in February of 2019. Kenneth has been in the transportation industry since May of 1999. He holds a Bachelor of Arts in Communications from Salem State University.
kenneth.cavallaro@allenlund.com
By Ben Batton, ALC Des Moines
After a scorching hot summer ravaged much of the country, let’s think about something cool, sweet, and juicy. Watermelon, that iconic summer fruit, holds a special place in our hearts as the ultimate thirst-quencher and sweet treat. In this edition of Keeping It Fresh, we’ll take you on a refreshing journey through the world of watermelons, exploring fascinating facts, their growth areas, consumption, and the logistics that bring these luscious, lycopene-laden fruits to our backyards and tables.
Watermelons have a long history dating back to ancient Egypt, where they were not only consumed, but used as containers for water storage. There are over 1,200 varieties of watermelon, ranging in size, shape, and color. The most common types include the classic red seedless and yellow-fleshed varieties. Watermelons are aptly named, as they are composed of over 90% water. This makes them an excellent hydrating snack, especially during the hot summer months. Plus, they are rich in vitamins A and C, and antioxidants!
ALC Des Moines office has worked with Capital City Fruit since 1969, managing hundreds of watermelon loads every year. Keith Brooks, Capital City’s watermelon buyer, has been in the melon business since 1991 and has built strong relationships with growers nationwide. He works to guarantee the availability of fruit for his customers and sources watermelon all year long, especially during the peak season of April through August. Keith is active with the National Watermelon Association (NWA) and has been on the board for eight years. Allen Lund Company has been a member of the NWA for nearly 15 years.
“Back in the day, we used to load bulk watermelons on the floor of the trailers on top of straw or shredded newspaper,” Keith remembers. “But today, watermelons are shipped in bins triple-stacked on reefers or dry vans with produce vents.” All the growers he buys from are good partners who follow food safety requirements and communicate well. “However, some of the characters out there are lower than a snake belly in a wagon wheel rut, so you have to pick your partners wisely,” reminds Keith.
All fresh produce is heavily affected by weather, but watermelons present an added challenge because they are not typically cooled before shipping. Most produce is harvested and transported to a cooling shed where it is brought down to temp before being shipped across the country. Many growers use converted school buses to haul melons from the field to the packing shed, where they are sized and placed in bins. This means there can be a lot of “field heat,” so it’s common for drivers who transport watermelon to open the front and rear vents when first loaded in order to circulate air through the trailer during the first couple hours.
As we savor the sweet, juicy taste of watermelon on hot summer days, it’s worth appreciating the global effort and logistics that go into bringing this delectable fruit to our tables. From the fields where they are grown to the logistics networks that transport them, watermelons truly represent the essence of summer. So, the next time you bite into a slice of watermelon, remember the journey it took to reach your plate. Cheers to the summertime staple that keeps us cool and refreshed!
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| Ben Batten is General Manager, ALC Des Moines. |
| Ben graduated in 2002 with a Bachelor of Science in Transportation and Logistics from Iowa State University and joined DMTB in January 2004. Over the next decade, he worked as a broker, account manager, and sales executive before being promoted to VP of Sales and Operations in 2015. In 2017, he became a partner in the business, and the Allen Lund Company acquired DMTB in February 2020, where he served as the assistant general manager of the ALC Des Moines office before being promoted to general manager in 2022. ben.batten@allenlund.com |
By Makenna Christensen, ALC Logistics
Today, there are no container ships waiting offshore of the ports of Los Angeles and Long Beach, a far cry from the 109-vessel queue in January of last year, but this doesn’t mean we have solved the problems that led to the backup. It’s easy to blame the pandemic for these problems, but the reality of the situation is these ports were bottlenecks long before COVID-19. The explosion of demand during the pandemic simply exposed these weaknesses. Now, with cargo volumes down, we have an opportunity to review our game tape, identify our weaknesses and areas of improvement, and find innovative new ways to fix our broken system.
In April, the California Air Resource Board (CARB) voted unanimously to adopt the Advanced Clean Fleets rule. This legislation works hand in hand with the state’s Advanced Clean Trucks rule to “end the sales of traditional combustion trucks by 2036, creating a path to 100% zero emission medium and heavy-duty trucks on the roads in California by 2045.” This legislation also bars non-zero emission “legacy” drayage trucks from registering into the CARB online system after December 31st of this year. So much for learning from our mistakes…
Rather than collaborating with the private sector to bring about meaningful change, California is intent on forcing trucking companies to comply with unreasonable demands. Not only does the state lack the 157,000 chargers required to charge the estimated 180,000 medium and heavy-duty ZEVs expected to be in use by 2030, but it also lacks the energy required to support those chargers. The Wall Street Journal’s Jennifer Hiller explains, “As fleets add trucks they may need to draw an additional 6 to 8 megawatts of power or more”. Supporting this level of output would require infrastructure improvements that could take years. In the meantime, some electric fleets have turned to diesel generators to charge their trucks, while others are ordering legacy rigs that will be delivered before the January 1st cut-off.
One of the industry’s greatest weaknesses during the pandemic was a lack of flexibility. The ports were weighed down by labor disputes and overregulation slowed down the nation’s supply chain exponentially. I understand the value of reduced carbon emissions, but we need a chance to fix the current supply chain before we rebuild it.
Rather than leaning so heavily on electric trucks, California needs to focus on alternative green solutions, like hydrogen fuel, that do not rely on California’s already strained electric grid. While California’s regulations do recognize hydrogen fuel cell options, it widely follows the ‘electrify everything’ mentality. Further, California energy officials need to partner with the private sector to find innovative ways of cutting down our emissions while fixing the broken system that contributed to our nation’s supply chain crisis. If not, we have a recipe for disaster.
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Makenna Christensen graduated from Marquette University in 2022 with a Bachelor of Science in Marketing and Human Resources. She started working at the Allen Lund Company in July 2022, as a Software Sales Coordinator for ALC Logistics, the software division of ALC.
makenna.christensen@alclogistics.com
By Nora Trueblood
Before diving into this very tenuous subject of immigration, I wanted to share some history to bring us to 2023.
The United States has always been considered the great melting pot, welcoming immigrants from all over the world. From the late 1800s until 1965, immigration was just a matter of something we always had, accepted, and were proud of. We welcomed those from all points in Europe and Russia and then more and more from Asia and Latin America. The early immigrants were attracted by jobs in building and manufacturing industries, and as time went on the needs in agriculture became more obvious for immigrant workers.
The U.S. had allowed immigrants at a large pace, admitting an average of 250,000 immigrants a year in the 1950s, and 330,000 in the 1960s.
Beginning in the early 1960s, immigration became more and more of a talking point, and the idea of establishing a policy to monitor and control entry to the U.S. was on the minds of both sides of the aisle – both in Congress and with the Senate. Quotas that had been established based on census information since the 1920s were out of date, and those quotas were challenged as to their fairness. John F. Kennedy took up immigration reform prior to his assassination.
The Immigration and Naturalization Act of 1965
Considered the first legislation of its kind passed after Kennedy’s death, with support and passage by Congress and in the Senate. However, the water-downed version of the legislation was thought to have very little real consequence in immigration reform. In the three decades since its passage, it is estimated that over 18 million legal immigrants entered the U.S., with the highest number from Mexico. The roots of this legislation remain in effect.
The Refugee Act of 1980
This legislation’s focus was on raising the annual admittance of refugees to the U.S. from 17,400 to 50,000. It also created a better process to review and adjust to the huge influx of refugees from war-torn countries where individuals needed to show a “well-founded fear of persecution” if they stayed in their home country. It also provided assistance to immigrants to achieve financial self-sufficiency. This legislation was passed unanimously by the Senate and was signed into law by President Jimmy Carter. Parts of this legislation remain in effect.
The Immigration Reform and Control Act of 1986
The intention was to create a better way of enforcing immigration and the first amnesty programs, creating more chances for legal immigration. It also made it illegal for employers to knowingly hire or recruit illegal immigrants. This was passed and signed into law by President Ronald Reagan. The effect was specific to a new visa process to allow immigrants to work temporarily in mostly agricultural settings, with some non-agricultural visas extended as well. This Act remains in effect.
The 1990 Immigration Act
This legislation amended the Immigration and Naturalization Act of 1965, by raising the total level of immigration. Reportedly 20 million immigrants were permitted over the two decades since its passage to enter the U.S. Additionally, entrants could stay in the U.S. until situations in their home countries improved. A new area addressed in this Act was that employers could contract with foreign laborers to come to the U.S. and pay for their passage in exchange for the worker’s wages (up to one year). What resonates with me specifically about this legislation is the fact that it was introduced by (D) Ted Kennedy and signed into law by (R) President George Herbert Bush. It seems like the last time a bipartisan piece of immigration reform was passed.
There was additional reform passed in 1996, and then after 9/11, the Homeland Security Act of 2002 took over much of the immigration enforcement.
President Biden is trying to push through more immigration reform, however the Republicans currently control the House and the Democrats the Senate. And the divides in this country have never seemed so wide.
Our agricultural businesses need seasonal workers as do other non-agricultural businesses like the hospitality/hotel industry. They rely on immigrants (legal and other) to keep their businesses afloat. I have read and heard the statement “no one wants these low-paying hard-working jobs.” I always thought it would be interesting to require high school students in an agricultural region/state to work in the fields for one week. While I have not done so myself, I understand working in the fields, just as working as a housekeeper at a hotel, is very hard work. So, we Americans won’t fill these jobs? That is another topic altogether to think about.
How do we get our Congress and Senate to work together to bring about humane and fair immigration reform? Where those in the U.S. who are here illegally, but are working and paying taxes have a road to citizenship. Where the Dreamers that are here because their parents wanted a better life for them, may stay and become legal citizens. And the flip side, how do we remove the immigrants that are criminals, prevent entry to those with records of violence and gang affiliations, those that are moving fentanyl through our schools and communities, and those who do not work and expect our government to take care of them?
I do not have answers to all of these questions, but I do know that the transportation and produce industries employ a lot of very smart people. We need to speak up, get involved and be the conduits of change. Let’s have more conversations.
By Jake Diana, ALC San Francisco
When it comes to the rapid advancement of AI and automated technology, there are few topics more controversial than autonomous vehicles. Many states are not only utilizing, but actively encouraging the implementation of autonomous trucking technologies. From Elon Musk’s Tesla line featuring autopilot mode to the seemingly endless supply of Waymo driverless vehicles throughout major California cities like San Francisco and Los Angeles, it seems that autonomous transportation is becoming less and less avoidable in today’s society.
For some folks, it is evidence of the state’s willingness to change with the times and adapt in ways that allow for a more streamlined future. For others, autonomous vehicles represent a threat to the economy, potentially taking the livelihoods of thousands of hard-working industry veterans by eliminating the need for truck drivers.
On May 31, 2023, the California State Assembly voted to ban driverless trucks from operating within state lines, mandating the presence of a safety driver within these vehicles. Should this bill (AB 316) pass in the California State Senate, California would fall further behind in terms of implementing autonomous technology into the trucking logistics industry. Jeff Farrah, executive director of the AVIA (Autonomous Vehicle Industry Association), stated directly after that “AB 316 undermines California’s law enforcement and safety officials as they seek to regulate and conduct oversight over life-saving autonomous trucks” in reference to the often utilized argument that the use of self-driving vehicles actually increases road safety and causes a regression in transportation-related deaths. Industry veterans strongly refute this argument, believing that their experience and human characteristics allow for better results.
Fernando Reyes, Teamster Local 350 member, advocated for trucks needing drivers, stating: “…the thought of it barreling down the highway with no driver is a terrifying thought and it isn’t safe…”. He goes on to elaborate further into the safety risks posed by a lack of drivers, saying, “…I know to look out for people texting while driving, potholes in the middle of the road and folks on the side of the highway…”. Clearly, this is a divisive issue featuring some strong points on both sides, yet how does it affect freight brokerage companies?
The answer is that a potential monopoly on trucking due to utilizing autonomous trucks could be just as devastating for brokerages as the carriers themselves. Automated transportation would have a cascading effect on the industry as a whole, as the need for drivers would be eliminated. If there were no drivers involved, there would be no dispatchers. Therefore, shippers would likely come to the conclusion that they would be better served purchasing automated trucks and their accompanying tracking/logistical management systems. Most, if not all, brokerages would be forced to end operation given that much of the moment-to-moment load management would become obsolete as driver error would be eliminated. Rate negotiations would cease, as shippers would own their own fleets in entirety and therefore have no reason to seek outside guidance or management.
However, the need for truck drivers for produce and perishable products is an entirely different conversation. Most of these loads are multi-pick, where a human is needed, so they will probably not see driverless vehicles in the future. As of now, it seems that fully autonomous freight transportation is still decades away from being viable – seemingly in step with the gradual implementation of autonomous technology across all sectors of the world.
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Jake Diana graduated in 2020 from the University of Oregon with a Bachelor of Arts degree in General Social Sciences. Diana joined the ALC San Francisco office in August 2022 as a broker’s assistant, before being promoted to carrier sales representative, and most recently to carrier sales manager. He is a high-energy individual with a passion for competition, teamwork, and tech.
jake.diana@allenlund.com
By Bill Bess, ALC
It’s no secret that organized crime, scammers, and thieves are actively working to upset the legitimate flow of freight across the US and Canada. This type of crime has been going on for years, but in the last 12 months thieves have intensified their efforts. Cargo security is a major concern no matter what your role is in the food supply chain. We are all in this together and together we can tighten up our security and make a huge difference.
Allen Lund Company has taken a pro-active approach to identify and eliminate potential security breaches. We have made changes to our on-boarding process, which is closely monitored by our Carrier Resources department. Education and training for brokers has given them the tools to evaluate the potential risk that a carrier might exhibit and react accordingly. Our Accounting department scans thousands of bills of lading and invoices monthly, looking for any inconsistencies. In addition to the internal measures ALC has taken, we share information and best practices with the Transportation Intermediaries Association, CargoNet, Carrier411, and other transportation companies. These policy changes, information sharing, and additional training will continue to make a difference.
What can a shipper or a warehouse do to help prevent your product from being compromised?
- Prior to loading, have your broker give your shipping department the driver’s name, company name, and trailer number. If the information doesn’t match call the broker.
- Whenever possible use a temp recorder that has a tracking device built in. These devices have the ability to monitor temps and location.
- Don’t rely on the pick-up number to verify the carrier.
- Verify the driver’s name with their license. Insist that the bills are signed legibly by the driver and include their company name. If necessary, have the driver print their name and company name.
- Driver should arrive with a pre-cooled trailer. Driver should acknowledge that they understand the desired temp and that it is in continuous mode.
- Most importantly, use a transportation service provider that has the experience and protocols in place that are necessary to protect your product.
We are all in this together with the same basic goal…to deliver the safest and freshest product to our customers.
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Bill Bess, Director of Carrier Development, was previously the manager of ALC Orlando, FL, and has been with the Allen Lund Company for 39 years. With over 45 years of experience transporting perishable products, Bess’s expertise includes perishable supply chain protocols, claims resolution, and developing carrier-specific programs for the company.
bill.bess@allenlund.com
By Charlie Fabricant, ALC Nashville
In the last few years transportation professionals have been increasingly asked what technologies they are using to reduce freight-related carbon emissions. According to recent polling, 65% of U.S. consumers “worry about climate-change” when purchasing goods, and 71% of workers say that they want to work for a sustainable company. These factors have caused many shippers to look for more sustainable transportation solutions. However, battery-based energy storage is not yet advanced enough for us to solely rely on renewable energy or electric vehicles for our energy and transportation needs. This technological gap has left a market space open for a temporary energy solution in the form of HVO (Hydrotreated Vegetable Oil) biofuels.
Biofuels have been championed by sustainability, agricultural, and national security leaders as a way to decrease carbon emissions, strengthen demand for feedstock crops, such as corn and soybeans, and reduce our dependence on foreign fossil fuels. In addition to the listed benefits over traditional diesel, biofuels can be used in diesel engines without costly capital investments. Unfortunately, early biofuels (FAMEs) like ethanol were found to be corrosive to engines and have conflicting economic and environmental effects. Given these limiting factors, biofuels appeared to have a minimal impact until the emergence of second generation biofuels, or HVOs. HVOs are created using a different process than FAMEs, which produces a more sustainable and stable fuel. HVO biofuel is chemically identical to traditional diesel with the added benefits of reducing emissions by 40-60% and having greater resistance to freezing temperatures. In addition, although HVO fuel is currently 10-20% more expensive than diesel, government incentives exist to make it cost competitive while production is scaled to meet the growing demand. Given that gen I biofuels are now cost competitive with diesel, it will only be a matter of years before HVO prices decrease to similar levels. Finally, and arguably most importantly, biofuels give the United States a greater level of energy independence from the Middle East and Russia since they are mostly produced domestically
Although HVOs seem to be a “silver bullet” for transitioning the USA’s transportation sector to a cleaner future, there is a big catch. Not all HVO fuels are created equally! As with almost any emerging market, academic research and government regulations have not kept pace with technological changes. This delay in knowledge, further exacerbated by budget cuts for important investigators like the EPA, has led to acquisitive corporations pushing dangerous chemicals through regulatory processes under the guise of being “cleaner” than diesel. HVO biofuel is a very promising new technology, but there are certain manufacturers to be wary of. When navigating a new market with such variations in fuel quality and production practices, it is crucial to have a trusted transportation partner like the Allen Lund Company with 47 years of experience building resilient supply chains while supporting our local communities. ALC is currently in conversation with one of the US’ largest energy companies to bring legitimately clean HVO fuel to interested shippers and carriers. Please reach out with any questions. We are excited and ready to start meeting your green shipping needs!
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and has become a Transportation Broker along with the company’s Environmental, Social, and Governance (ESG) Coordinator.