Posts Tagged “Keeping It Fresh”

Keeping It Fresh: Produce Season Challenges

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By Brendan McCallum, ALC Rochester

With every produce shipping season comes a new set of challenges, and the 2021 season may be the most challenging we have ever seen. The impact of COVID-19 on the economy has been massive and unprecedented, with every industry being affected in one way or another. While many industries suffered during this time, the agriculture industry saw volumes increase. Add on the usual surge in volume during the produce season, and you see an extremely tight capacity situation.
Shifting focus to the Northeast, which has its heaviest peak of volume in August/September, relying mainly on the production of apples, corn, and blueberries. In 2020 we had seen increases in produce sales within these major Northeast crops, only to see these numbers increase further coming into 2021:

  • Total corn production increase estimated at 6.5% between 2019 and 2020, with that trend continuing into 2021, which is in part due to corn exports increasing because of high demand from China and other importers. 
  • In New York, apple production is expected to increase in 2021 due largely to improving export markets and continued strong domestic demand.
  • Coming off a 2020 drought season, Maine has shown improvement in blueberry production in 2021 and will see continued improvements, due to further education/research on climate adaptions.

These are just some examples that will make up for a challenging peak in the Northeast produce season. Around this time, carriers will devote trucks to moving high crop volumes, diminishing available capacity throughout the country. This causes spikes in truck rates, which immediately impacts the ability to book shipments into or out of the affected and nearby states. It is important to apply advanced preparations and have a strategy in place to adapt to various seasonal demand changes. This is the season in which relationships built throughout the year with carriers becomes so important. Having people you can rely on to ship these products during a trying time will help mitigate disruptions and frustrations, ensuring continued success for everyone involved.   

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Brendan McCallum is a transportation broker in his first year at the ALC Rochester, office. He has three years of previous experience working in Intermodal Logistics. Brendan attended The College at Brockport where he obtained a Bachelor’s Degree in Sport Management.     

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Keeping It Fresh: It Never Rains in Southern California

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By Iyer Amruthur, ALC San Antonio

Lush leaves, warm waters, flourishing flora, are just a few of the things that come to mind in a picturesque way when one thinks of California. But California is not just a “start-all, end-all” vacation spot. Coastal California actually has a lot more to do with you than you think.

Do you enjoy complete and balanced meals? Of course, you do! It’s important to maintain your body and keep yourself properly hydrated and hit all the food groups. Fruits, vegetables, meat, dairy, grains, are all main staples but chances are your fruit didn’t come from a couple of miles down the road, it more than likely came from one of our powerhouse produce states.

Just to name a few: Texas, Florida, and California. These three states play a big role in getting those delicious dinners and popping picnics to come together. Did you know California by itself produces more cash receipts from produce than the entire Mountain/Pacific region states combined or that about half as much comes from Texas, which has 86% of its land [ocregister.com]used for agricultural production?

While this is fantastic for our country to have so many geographic options for crops, sometimes those regions come with a bit of a headache down the road. As you know historically, California has experienced drought from the early 2000s to today, and if you’re a Texas resident you know we’ve been feeling the same. What does that mean at the end of the day for our nation?

Let’s step back for a second and have some breakfast, and figure things out. As you may have heard one of the trendiest foods incorporated into breakfast this side of the decade has been avocados, maybe you’ve seen them aesthetically spread onto toast.

Along with many other functional foods, avocados have almost doubled in price (complimented with far more than double the demand) since a few years ago. Unfortunately, that breakfast might be a little bit more expensive on the west coast now. California is one of our nation’s leaders in producing avocados.

In 2014, California’s last notable drought [businessinsider.com[businessinsider.com] top exports such as avocados, berries, cruciferous vegetables, i.e. cauliflower, cabbage, kale, as well as grapes, and lettuce rose in price anywhere from 17 to 62 cents depending on the product.

It’s not all bad news, we can look at some silver linings while we wait on the clouds to come back and rehydrate our fields. Texas shares a similar palette on many in-demand produce products with California and has seen a recent increase in exports of avocados to pick up the slack left behind.

According to data from the USDA [data.ers.usda.gov] website, avocado demand grew from 155,379 ($1000’s) in December 2020 to 231,835 in Jan 2021 and 315,128 by March of the same year.  Many times, when we see a lack of a commodity in one area, we’ll look to grow it somewhere else, or import it.

Texas has the perfect climate for avocados, and also controls some of the main border entries for Mexico, which exports billions of dollars worth of avocados [agmrc.org] every year to us. This new entry point/origin for produce shifts the freight market as well to create demand for trucks in Texas while decreasing the demand in California.

To sum things up, when it starts to “Never rain in [Southern] California” we see the whole nation shift their focuses on backups, imports, and inevitably higher costs. So be sure to avoca-do yourself a favor and pick up some delicious guacamole ingredients while we wait out this drought and get produce to your state from wherever its’ freshest!

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Iyer Amruthur is a business development specialist in the Allen Lund Company, San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.

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Keeping It Fresh and Balanced

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By Matt Sarko,Transportation Broker, ALC Cleveland

Since the beginning of last year, the increase in the cost of freight has not only impacted the transportation industry but the economy as a whole. Transportation costs are now at an all-time high as drivers and trucks are currently in short supply.

Food prices rose 3.9% in 2020 and the U.S. Department of Agriculture anticipates another 2% to 3% increase for costs in 2021. The increase in transportation prices is primarily due to the shortage in drivers causing trucking companies to increase wages to attract more employees.

Additionally, the market is experiencing a shortage in semi-conductors, which is keeping new trucks from coming on the market and has since exacerbated the issue.  The increase in transportation costs only adds to the supply chain problems for growers, suppliers, and retailers as they are still experiencing the effects of congested ports as well as the winter storm, which both continue to have widespread impacts across the U.S.

Furthermore, the rise in the price of fuel is also a major contributor to the inflated freight costs. As a result of these supply chain complications, retailers have begun raising prices on a number of different goods in order to offset the shortages and transportation costs. “The rise in transportation prices affects everything from the farmer and the tractor, to the fertilizer and even the plastic hamper you put the product in.”

With the supply chain in disorder, we will continue to see a rise in the price of consumer goods. Moreover, the cost of transportation will ultimately affect the prices of publicly traded companies such as Bed Bath & Beyond and General Mills, considering they have alerted investors about these problems on their earnings call.

For transportation brokers like ourselves, taking advantage of the spot market whenever possible might be the best way to combat the losses taken on contractual year round rates as freight prices continue to rise, and to also keep important products, produce, and perishables moving across the country.

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Matt began working fulltime for the Allen Lund Company in August of 2020 as a transportation broker for the Cleveland office. He originally started working his summer breaks during college as a broker’s assistant for the office. Matt joined the company with a degree in Finance from John Carroll University.

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Keeping It Fresh: What a Difference a Year Makes

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By Matt Minthorn, Manager, ALC Phoenix

It is safe to say that the first quarter of 2020 was nothing that anyone in society had experienced in the past.

On January 9th, 2020 the World Health Organization (WHO) announced a mysterious Coronavirus-related pneumonia in Wuhan, China. Most of the rest of the world didn’t pay much attention and we were all going about with our lives totally unaware of the drastic changes to come. By January 20th, the CDC reported that three U.S. airports would begin screening for Coronavirus, JFK International, San Francisco International and Los Angeles International.

Then on January 21st, a Washington state resident became the first confirmed case of Coronavirus after returning from Wuhan, China.  On January 23rd, Wuhan, China went under quarantine as well as nearby Huanggang, putting 18 million residents under strict quarantine.  As we all know, things rapidly progressed from there. On January 31st, the WHO issued a global health emergency for only the sixth time in history.

February 2nd saw global air travel restricted from certain countries and required testing or quarantine before passengers could leave for their destinations. February 3rd the U.S. declared a public health emergency. Cases continued to rise around the globe and fear began permeating society. On March 11th, the WHO declared COVID-19 a pandemic, stating the alarming level of spread and severity as well as the alarming levels of inaction to prevent the spread.

On March 13th, President Trump declared it a national emergency allowing billions of dollars of federal funding to be allocated to fight the spread. On the same day he issued a travel ban on non-U.S. citizens traveling to the U.S. from several European countries. 

On March 19th, California became the first state to issue a statewide stay-at-home order mandating all residents to stay home except to go to an essential job or shop for essential needs. This led to many sectors of the economy coming to a grinding halt and consumers mass buying essential (or not so essential, toilet paper?) items, stripping shelves and throwing the retail supply chain into chaos. This trend followed across the nation as state after state began issuing the same stay-at-home mandates. 

My home state of Arizona followed on March 20th, thus all non-essential business halted and the state was on a semi-lockdown. Lines at grocery stores, home improvement supply stores, pharmacies and Costco in particular were insane and shelves were quickly bare.  Providing food and essential items suddenly became vital to keeping society fed and supplied with the items necessary to adequately prevent spread of the virus and care for those that were unfortunately afflicted with COVID-19.

There was a tremendous decline in the need for transportation in the non-essential sector of the economy and a large increase in those essential businesses. However, struggles emerged throughout the supply chain to maintain the extreme level of production that demand was driving.

Entire production facilities were shut down due to cases and exposures, normal production schedules and timing was pushed out farther and farther and there became an excess in carrier capacity due to these circumstances as we moved into April. Average freight rates across the country took a nose dive and hit lows that we hadn’t seen in years.

Carriers began to run out of operating funds and a vast number of carriers ended up out of business over the second quarter of 2020.

So where are we today, a little more than a year after the first stay-at-home mandates were issued? Most states have re-opened fully or are close to resuming life as close to “normal” as possible.

In relation to the freight market, increased manufacturing and demand for all types of products has increased steadily as states reopen. The recent severe weather has also drastically affected freight demand and rates in most of the U.S. Spot rates for vans are currently up 34% over 2020 through February and reefer spot rates are up 28.5% in the same period nationwide.

Last March there was still a higher level of demand as restocking was driving the market with much more volume. April saw a tremendous decline in demand and saw rates drop to levels seen during the manufacturing recession of 2016.

Our comparable data for rates April 2020 versus this year will likely be even more dramatic than our current numbers, likely up 40% year over year. In the majority of the domestic fresh produce industry, we are approaching our peak seasons from several regions, including California and Arizona.

Rates will continue to be firm and demand for capacity from these regions will spike as we move through the second quarter. Shippers can help assure capacity by having flexible schedules, increased lead times on tenders and most importantly, understanding of the current market conditions when working with their carrier and broker partners. No one could have predicted the last year in perishable transportation, but we’ve all learned how to adapt and excel in this “new normal”.  

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Matt Minthorn is the manager of the Phoenix office. He was previously the assistant manager, refrigerated department Boston office, and has been with the Allen Lund Company for 19 years. Minthorn is a graduate of the University of Vermont with a degree in business administration and has 20 years experience in produce sales and transportation.

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Keeping It Fresh: From Sprout to Store

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By Iyer Amruthur, Business Development Specialist, ALC San Antonio

Guanajuato, Michoacán, Puebla, Jalisco, and Sonora. What do these names all have in common, despite possibly being unknown to you as an average consumer?

They combine to account for most of the 31,900 hectares (98,595 acres) devoted by Mexico for broccoli farming. 70% of the product ends up being sold to primarily the U.S., followed by Canada, Japan, and some European countries as well.

It is also the main export of Guanajuato. So, why does this matter?  Just like you, I buy my broccoli from HEB here in Texas (although you may have a Kroger, Publix, or even Walmart in your areas). It’s one of the many year-round vegetables my family enjoys. And recently if you’ve caught the news, the weather has been pretty awful for us in Texas.

Inevitably, especially with border shipments, we see adverse weather throw hurdles into the logistics game. At times the border even shuts down, to the dismay of both the U.S. and Mexico. Some 16,000 trucks pass through the border town of Laredo, TX every day, and this accounts for 37% of all our trade between the U.S. and Mexico.

As you can guess, when those 16,000 trucks can’t move, it’s going to create some big delays! How does this affect you? Many people end up confused as to why weather in Texas causes some stores to run out of broccoli, hike prices, or have older product in places like Chicago.

While we have many sources of produce, our nation’s grocery stores aim to hit between the best price and the best quality which sometimes means an import! As you must have heard, not just Laredo, but most of Texas shut down its highways and freight came to a standstill. Even at my local HEB, you can see a reduced selection of fruits and vegetables at higher prices.

Grocery chains work hard to do whatever it takes to make sure you have what you need when you enter the store, and nothing exceeds the urgency of perishable goods. Here at ALC we work with our grocery customers to smooth things out. There are things we can do as a team, that are difficult to do from a company’s in-house logistics.

We can navigate the massive amounts of information, rescheduling, constantly shifting prices/supply of trucks, arrange transportation from other sources around the country and put it together in a fashion that provides an immediate solution. During poor weather conditions, 3PLS are some of the last doors that close, and with our expertise and resources, we can even provide solutions remotely.

Weather is Mother Nature’s way of throwing us curveballs and we strive to be able to react to our customers’ needs. Our goal is to ensure the consumer can count on fresh quality products available in their local stores no matter the weather in Texas or Chicago.

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Iyer Amruthur is a business development specialist in the ALC San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.

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Keeping It Fresh: USDA Farmers to Families Food Box

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By Nick Rooney, Transportation Broker, ALC Orlando

As the pandemic continues to move its way through the world, we are still navigating how to get through each day. Businesses closing, hair and nail salons shutting down, gym memberships across the globe now unable to be used.

Money has become scarce for some, food being one of the most difficult supplies to have in abundance in many homes. Food insecurity in households with children under 18 has increased by about 130 percent from 2018 to May 6, 2020, leaving millions to worry about their next meal. The Farmers to Families Food Box has done an amazing job helping the millions of families in need during these times of hardship.

This program was built as a way to deliver food to families in need, not letting food go to waste, and helping farmers and ranchers stay in business. The Farmers to Families Food Box program purchases fresh produce and other goods directly from distributors of all sizes across the nation, from local to national. Distributors package these products into family-sized boxes, then they are transported to food banks, community and faith-based organizations, and other non-profits serving many families in need across the nation.

This is also helping to ensure our logistics system across America remains in a healthy balance by keeping freight moving and carriers in motion.

During the first round of obtaining produce and goods, beginning May 15 and ending on June 30, 2020, an astounding 35 million boxes were delivered in just the first 2 months. Round five started on December 21, 2020 and is scheduled to conclude at the end of April.

The Farmers to Families Food Box program has now provided over 133 million boxes to families in need so far since its inception. With round 5 in play, Farmers to Families has received over 6 billion dollars in funding, keeping companies running, employees paid, and most importantly, families fed.

The product provided is not limited to any specific commodity, for round 5, the USDA will purchase fresh produce, dairy products, fluid milk, meat, and seafood. This product assortment is just one example of why funding for boxes has been sporadic in cost throughout the year, markets are still alive and adapting causing rates for certain products to reach high dollar amounts, this isn’t stopping the millions of Americans pulling together to help each in need.

The year 2020 provided some of us with a different perspective on daily life and what it means to be in need. I suggest we take a step back and start looking at families and friends within our communities to find struggles and needs that we can try to help with. With everything going on right now, some need food, others may need a friend or someone to talk with, you can truly make a difference in someone’s life this year.

I will strive to make an impact in my community throughout this year starting with donations made to my local food bank. Farmers to Families has opened my eyes to a struggle that I truly thought was being handled here in America. Seeing that there will be more families in need within the coming year, I hope more programs like this one are put into place.

Nick Rooney began working for the Allen Lund Company in October of 2019 as a broker in training for the San Francisco office. Nick then joined the Orlando office in August of 2020, continuing his path to become a broker. As of January 2020, Nick is a transportation broker and manages produce loads for the Orlando office.

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Keeping It Fresh: Difficult Choices

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By Matt Fyten, Operations Manager, ALC San Francisco

Everyone is familiar with the phone call, the Monday after a hectic holiday pull, “Hey it’s Never There Trucking, remember me? I have four empty reefer teams ready to go anywhere, can you help me out?”

As brokers, we have to make a choice on which carriers we give our business to in an effort to support our customers. While it might be tempting to give our business to that truck that is ready to haul our loads at a low rate, experienced brokers know that is not always the best long term solution.

What about the carriers that gave you trucks all year and even took on extra loads during that holiday? Are we really going to pass on those options for a truck even if it’s 100 dollars cheaper? These are the questions that are fiercely debated among brokers every day. Managing a carrier’s load volume as well as their relationship expectations has never been more important as we navigate this time of uncertainty.

The largest challenge for produce transportation brokers was that midway through 2020 dry van rates surpassed refrigerated truck rates. There is significantly less liability for a carrier to haul a dry van load compared to a refrigerated load. Refrigerated trucks hauling fresh produce know that they are going to get paid more money because they must wait for extended periods of time to get loaded, use more fuel in their reefer units, maintain a continuous cold chain, and are dealing with a product that has a short expiration date.

We spoke to one of our carriers who stated, “we are getting over $3.50 a mile, having zero claims with flexible loading and delivery dates, along with being able to use 80% of my reefers without having to buy new equipment made dry a profitable option for us.”

They know any breakdown or issue could cause a very expensive problem, constricting an already volatile truck market as our country was entering various stages of pandemic responses.

The rate discrepancy has made many refrigerated trucks that specialize in produce hesitant to commit to a year-long contract rate in 2021. I reached out to some of our highest volume carriers to get their thoughts on the upcoming year. Another of our larger carriers stated that contracts this year are “very risky and a gamble he is not willing to take.”

One solution is to work out mini contracts. These are locked in rates that can last for six months, a season, a month, or even a week. Having carriers sign up for programs like our own RIGS, will ensure we keep their trucks loading with ALC. Carriers take comfort in knowing that a single company can provide them round trips and they don’t need to search the load boards for freight. That same carrier also informed us that they avoid the posting boards because in times like this they need to be assured that they will receive payment from a reputable company like ALC.

Coming off of a very challenging year in 2020 it might be tempting to give business to the less expensive truck that shows up as the market softens. Last year showed us a market shift can come at any moment not just during the summer months or before the holidays. We have to treat carrier relationships like a long-term investment and continue to educate our carriers on the value of repeat business with ALC.

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Matt Fyten joined the Allen Lund Company in August of 2014 as a broker in training. Over the years he has held the roles of broker, senior broker and now Operations Manager in the San Francisco office. Matt holds a degree in Liberal Studies from San Francisco State University and has 12 years of experience in sales/customer relations.

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Keeping It Fresh: Topo Chico: Bubbling Over Borders

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By Iyer Amruthur, Business Development Specialist, ALC San Antonio

The Legend of Topo Chico has a near and dear place in every Texan’s heart as the premier choice for natural sparkling mineral water. From an ancient story of an ailing Aztec princess whose father, Movtezum I Ilhuicamina, searched far and wide for a cure; wise priests told the king his daughter must bathe in the mystical waters to the north of them. The tribe embarked on a search, for health.


The king took his daughter to the springs by a mole-shaped hill called Topo Chico. After bathing in, and drinking the waters, legend has it that she was immediately cured. Now we see this same spring as one of the most popular sources of beverages in the world! Topo-Chico began selling its mineral water to the U.S. in the 1980s, with its primary market being the Mexican-American communities.


Texas was the biggest consumer of the Topo Beverage, and soon it developed a cult following which exploded in 2010. With retro-green-tinted bottles, and a mythical location in one of Monterrey, Mexico’s inactive volcanoes, they took the market by storm. That is until they closed one of the biggest deals in their history.


In 2017 Coca-Cola, the world’s largest soft drink company acquired Topo Chico for 220 Million Dollars. With the added supply chain, marketing, and business expertise they were able to expand their sales by 25% in the first quarter. Before the acquisition, 70% of all Topo Chico sales were in Texas but with Coke’s distribution network, they were able to easily reach areas they were unable to before. Soon they started to pop up in convenience stores, additional Walmart’s, and even Costco.


Coke understands the effect the supply chain can have on companies. One thing that the company recognized about Topo-Chico is that the following was cult-like, it was based in certain demographics, and it had a certain image people loved. As Kellam Mattier, a VP of innovation at Coke said, “It’s important for us to maintain the relevance with the core Topo Chico fan base while introducing the brand to new people.” This helps the original company, traditionally regional, to bring that same company feel to the whole nation.


Now with 2021 on the horizon, Coke will debut Topo Chico’s first Hard Alcoholic Seltzer in Latin American cities and will be launching in the U.S. in 2021. This shows the perfect synergy, and what happens between a loved brand, and an expert distributor. Logistics has a lot of the focus on trucks, but before trucks even hit the road, someone needs to make routes, orders, and deals. This is what Coke brings to the table, and why you may see Topo Chico in a store near you soon.


With the bottled-water industry booming to $16 billion in 2017, the market was shifting slightly away from soda. In this gap today, Topo-Chico fits perfectly and is growing just like the legend from long ago.

Iyer Amruthur is a business development specialist in the ALC San Antonio office and has two years of logistics experience. Iyer attended The University of Georgia where he obtained a Bachelor’s Degree in Marketing, with a minor in Communications.

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Keeping It Fresh: Resilience

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By Braden Goodere

Business Development Manager, ALC San Francisco

Resilience is an important part of this industry and this year is no exception.

I believe this quote by John Rockefeller perfectly describes the current state of our industry. “If you want to succeed, you should strike out on new paths, rather than travel the work paths of accepted success.”

The way growers, shippers, retailers, and transportation providers deal with ever constant change, have determined their success in the new “norm” we live in today.

Sales obviously has had to adapt, as well. The conventions that take place throughout the year have all taken place virtually and the in-person handshakes have been replaced by video chat requests. The most common word used to describe this year’s market is “uncertain” and with many clients working from home they depend on us more than ever to not just provide fair rates but to educate them about what we are seeing and hearing in the market.

Although rates started out lower than expected for summer, freight rates increased quickly and the usual decrease after the 4th of July never happened. This left many clients scrambling, looking to secure capacity for their supply chain. 

Our team at Allen Lund Company stood by our clients, growing year-over-year and absorbing costs on a percentage of our freight. Much of the success in expanding our base over the past seven months is due to the hardworking, essential employees throughout our offices working diligently with our clients to navigate the road ahead.

As we prepare for the holidays, our industry and companies’ resilience will once again be put to the test. California outbound freight is now seeing dry van rates surpass the refrigerated freight market. Many of the large cultural festivals that occur during this time are not taking place in person, however, we still anticipate drivers continuing to take time off to spend time with family.

Keeping an open dialogue with the companies we work with allows them to keep surprises to a minimum and in turn, help them service their own customers and consumers. While the upcoming holidays will be different for everyone, we know that our customers depend on and appreciate the resilience of our team.

Braden Goodere began working for the Allen Lund Company in September of 2013 as a business development specialist. In September 2019, he was promoted to business development manager. Goodere joined the company with many years of experience in agriculture, having grown up on a ranch. He attended Cal Poly-SLO and received a BS in agribusiness finance.

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Keeping It Fresh: Freight Rate Regulations Under Discussion

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By Steve Hull, Manager, ALC, Portland

What a strange year it’s been so far in 2020, with so many changes and challenges in the perishables space! One item, that could greatly affect the business models and proprietary information of grower/shippers, has gone under the radar.

In a nutshell, a minority of motor carriers and carrier trade associations (such as OOIDA) are pushing the Federal Motor Carrier Safety Administration (FMCSA) to update the terms and enforcement of an existing section of federal code relating to freight costs paid between grower/shippers, brokers, and carriers. 49 CFR 371.3(c) was initially written back in the days of deregulation in 1980, and requires brokers to allow carriers to view the rates paid by the transportation buyer to the broker.

In practical terms, however, carriers have rarely asked to view that information. The majority of renewed interest in the regulation came about in Q2 of this year. Coinciding with historically low shipping volumes nationwide, normal supply and demand market forces caused a sharp fall in freight rates to carriers. Basically, a lack of supply (not as many available loads) caused a decrease in demand (lower freight rates). Carriers in turn, wrongly accused brokers of price gouging and other unscrupulous business tactics.

How does this all apply to grower/shippers? Just like forklifts, pallets, and packing material – the linehaul freight cost of getting your goods to your customer is something you purchase out of your operational budget. When the code was written back in the 80’s, it was more normal for carriers to pay a ‘commission’ to the broker. But now, the way most freight transactions occur has changed.

Per an article about this topic on Overdrive Online, Jason Craig, of C.H. Robinson stated on a recent listening session with the FMCSA, many brokers treat the contracts with shippers and carriers, as “separate transactions” and that “the price paid by the shipper does not affect the price paid to the carrier any longer.”

If changes are made to the code, the proprietary pricing you pay to a broker could be mandated to be given to a motor carrier. For every load. In essence, your buying power and negotiated pricing would be laid bare for all to see.

An important point as well, you could be barred from inserting language into any shipper-broker contract to keep your pricing from being disclosed. A dire scenario would be one that causes you to change your business practices.

You could even decide to end yearly, or quarterly, RFPs to brokers! All because a few carriers didn’t like the rates they were being offered by some brokers for a few weeks in early 2020. (And to get you up to speed on rates in Q3 and Q4, per DAT, there are many lanes that are seeing record high truck rates being paid to carriers.) 

What can you do? You can read up on these broker carrier issues here. And more importantly, FMCSA is still accepting comments from anyone interested in voicing their opinion. The comment period is open until November 18, 2020.

You can use this link to submit your thoughts, comments, and concerns. You can also reach out to your freight broker, to discuss how any changes would affect your specific business.

Steve Hull is manager of the Portland office and has been with the Allen Lund Company for 24 years. Hull is a graduate of the University of Southern California completing a dual major in political science and U.S. history.

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