Posts Tagged “Mexico”
While Texans tend to boast about how big everything is in the Lone Star State, it is a major shipper of fresh produce, ranking in the top 10 for its volume with fresh fruits and vegetables. Many Texas produce shippers also have invested in farming operations in Mexico, and a lot of the product crosses the border into the Lower Rio Grande Valley for distribution throughout the USA and Canada.
The valley, and more specifically, Pharr, TX will be even more important in the future as a distribution point for Mexican grown produce. It is located on Highway 281 which runs north all the way into Canada. Also of importance is the 3.2-mile-long Pharr-Reynosa International Bridge connecting Mexico and south Texas. It is the longest port-of-entry bridge.
While Pharr remains relatively small with a population of 75,000 residents, the city has purchased 90 acres just west of the bridge with aim of developing a produce district with warehouses for produce destined for shipping throughout North America.
Pharr also will gain importance with the completion of the Autopista Durango-Mazatlan cross continental Mexican highway. It is a 143-mile-long stretch of highway scheduled for completion by the end of this year. It was built with the intention of trucks hauling West Mexican produce to ports of entry in Texas. The new highway ends very near Pharr.
The new road is supposed to reduce transit times of trucks from West Mexico by a full day to points in the eastern half of the USA and Canada.
The state of Texas, not including Mexico, grows and ships over 70 different fruits, vegetables and nuts. It is the fourth ranking shipper of watermelons in the USA, accounting for 15 percent of the country’s watermelons. This time of the year Lower Rio Grande Valley grapefruit becomes a major item for loads.
The Lone Star State also is a major grower/shipper of onions, cabbage, spinach, and carrots.
Is the Mexican truck border program falling apart? If so, that would be music 
to the ears of many, if not the majority in the trucking industry. On the other hand, produce shippers and others will not be too happy.
As reported here on August 23rd, a federal audit would be coming soon on the cross-border pilot program involving Mexican based trucking companies being allowed to operate in the USA.
The Federal Motor Carrier Safety Administration estimated that 46 Mexican carriers would participate in the three-year pilot program. The feds were planning to conduct 4,100 inspections during this time. However, only four Mexican trucking companies have participated, involving only four trucks and five drivers. A total of 89 inspections have been conducted by the FMCSA. Ouch!
The controverisal program has created some strange bedfellows in trucking. For example the Owner-Operators Independent Drivers Association (OOIDA) and the International Brotherhood of Teamsters seldom agree on much of anything. However, they’ve tightly held hands fighting this issue based around fears that a flood of Mexican trucks in the USA will drive down freight rates, many of which are not much different from 20 years ago. There also are concerns by owner operators over safety issues with Mexican equipment and lack of training among Mexican drivers.
Meanwhile produce shippers and others favoring Mexican trucking access to USA markets like the idea of greater competition leading to lower freight rates.
If the pilot program falls apart, with few Mexican trucking companies interested in participating, some produce shippers are concerned the Mexican government will re-implement tariffs of everything from apples to pears and potatoes – with some tariffs being as high as 20 percent.
The North American Free Trade Agreement (NAFTA), under which this pilot program is operating, requires the USA to permit cross-border trucking. However, legal challenges over the years by American carrier groups have prevented Mexican trucks from operating north of the border for over 10 years.
Within the next month USA transportation officials anticipate an audit report 
on the trucking pilot program with Mexico. While U.S. produce industry shippers may be anxious because thereport could be negative, they fear it could lead to another round of retaliatory tariffs by Mexico.
At the same time some trucking groups in the USA hope this is exactly what happens. Not necessarily retailitory tariffs by the Mexicans, but they are strongly opposed to Mexican truckers having free access to USA markets with poorly trained drivers and subpar equipment, compared to American standards — not to mentions concerns freights were plummet.
The apple, pear and cherry industries in the Northwest has paid tens of millions of dollars during the three years that Mexico imposed 20% tariffs.
The North American Free Trade Act requires the U.S. to allow cross-border trucking. However, opposition by U.S. trucking unions – including the Teamsters and trade organizations – such as the Owner-Operator Independent Drivers Association, OOIDA, has kept the Mexican trucks out for more than a decade after the act went into effect in 1994. The trucking interests cited safety concerns with Mexican trucking equipment and drivers.
Despite lobbying efforts and some congressional roadblocks, the pilot program finally gained approval from President Obama and his Mexican counterpart Felipe Calderon in July 2011. The first Mexican truck came into the U.S. in October 2011.
However, only six Mexican carriers — each with one truck approved for the program — are participating in the pilot program.
One requirement built into the pilot program is that the DOT be able to document the safety of the Mexican trucks and drivers with “statistically valid” data. Powers said that could be a difficult task because of the low participation numbers.
Supplies of refrigerated equipment from shipping areas c0ast-to-coast 
continue to tighten as seasonal fresh fruit and vegetable volume rises. The result is buyers of produce are being forced to pay higher freight rates and truckers now have the upper hand in rate negotiations.
Truck supplies are especially short in California, Nogales, South Texas and in Florida.
The truck supply situation will continue, and worsen, after Memorial Day as receivers replenish supplies.
California hasn’t even got cranked up yet with produce shipments, although they are certainly getting there. If you are a produce hauler, let the good times roll.
The week of May 21st there were already a few loads out Southern California, Santa Maria, as well as the Salinas and San Joaquin valleys topping $8000 to places like New York and Boston.
In Arizona, rates for Mexican grapes crossing the border at Nogales, increased the past week by double digits. The most extreme example was a 30-plus percent hike in rates to Dallas.
Speaking of Texas, strong demand for reefer loads out of the Lower Rio Grande Valley continues. There’s a lot of watermelons and other Mexican fruits and veggies coming into the USA.
In Florida, rates have been all over the board — especially for hauling red potatoes. If you hit it right when truck supplies are really short, you could gross $2000 MORE on a load to the Northeast. Most of the state’s watermelon shipments are coming from areas north of Orlando, with shipments now coming from Georgia.
Salinas Valley vegetables- grossing about $8200 to Boston with some loads higher.
Mexican grapes from Nogales – about $3400 to Dallas.
South Texas produce – about $5500 to Boston.
Florida potatoes – anywhere from $3000 to $5000 to New York.
There’s some really sweet, tasty late season grapes from Chile in your produce department now. Enjoy them while they last, because 
the season for these imports are just about over…..Never fear though, grapes from Mexico should start arriving in your supermarkets within the next couple of weeks. There also will be the first domestic grapes arriving, from the Coachella Valley near Palm Springs, CA. Many retailers I’ve spoken with actually prefer the Mexican grapes over the Coachella grapes. Keep in mind that a lot of the Mexican grapes are actually owned, or financially backed by grape growers from the U.S. — especially from California.
I’ve been a little disappointed overall with California strawberries thus far. Some have been better than others, but overall, the quality could be better…..Of course, I have to qualify this since I shop at a small town Wal-Mart, with absolutely not competition. Wal-Mart’s produce departments have really went down hill in the past several years.
You should be finding those wonderful sweet onions in your stores by now — especially those from Vidalia, GA. Of course, Texas grows some pretty good sweet onions as well.
Fresh table grapes from Mexico should start crossing the Mexican-U.S. border
at Nogales, AZ within the next couple of weeks. Initial volume will be light, but will increase quickly. Beginning in early May there should be around 2.5 million cartons of grapes crossing the border weekly for distribution throughout the United States and Canada. This volume should continue until around the middle of June. From there it will start a seasonal decline with crossings ending in early July. In total, there should be around 15.5 to 16 million cartons of Mexican grapes cross the border.
As grape crossings increase, many of the spring vegetables from Mexico are decreasing.
Mexican veggies at Nogales – grossing about $2400 to Chicago.
Your best bets for getting quickly loaded these days are Southern California, South and Central Florida, as well as Nogales, AZ.
In Southern Cal, whether talking strawberries, oranges, avocados and some
vegetables, the best volume is here, although there’s increasing activity in the San Joaquin Valley, Salinas and Santa Maria….Mexican produce crossing the border at Nogales continues in brisk volume, although we’ll start seeing a seasonal decline the further we get into April. By late April or early May imports of grapes from Mexico will start taking center stage.
In Florida, volume will should follow a similar path of Mexican imports at Nogales. There are large variences in Florida produce rates depending on the area, and the commodities you are hauling, and to a certain extent when you are available to load and how bad the shipper needs a truck. For example rates to New York are varying anywhere from $3000 to $4000.
In south Texas, hail damage a couple of weeks ago wiped out 20 to 30 percent of the areas 10,000 acres of watermelons. Some onions also were hit, but not as much. The Lower Rio Grande Valley also is a big shipper of grapefruit and oranges. But it’s going to be awhile before we’ll know how much shipments starting next fall will be affected.
Nationally, three percent more apples remain in storages for shipping, with much of that fruit being in Washington state. Steady shipments should continue through the summer.
Yakima Valley, WA apples – grossing about $5700 to Pittsburgh.
South Texas veggies – about $1600 to Oklahoma City.
Central Florida veggies – about $3500 to New York City.
Southern California produce – about $5000 to Chicago.
Texas is among the top one-half dozen states when it comes to fresh produce 
shipments. Although it has lost acreage and production over the years as more growing operations were shifted to Mexico, the Lone Star State still remains an important piece in the nation’s food supply chain. Although the production/acrerage may not necessarily increase in coming years, the amount of produce coming in from Mexico should increase significantly starting in 2013 with the completion of a Mexican highway connecting production areas in Western Mexico with the Lower Rio Grande Valley of Texas.
Onion shipments have started from South Texas, which is the state’s leading vegetable item in volume, coming off of 20,000 acres. Other leading veggies from the state is cabbage, carrots and spinach, although there’s dozens of other veggies.
However, there were heavy rains and hail in Hidalgo County on March 29th, and we’re still waiting on damage assessments to see how much truck loadings will be affected. This includes another big item from Texas, watermelons. The good news is hail storms are usually localized, meaning some fields may have been hit, while others may escape damage altogether.
By the end of this year, a 143-mile cross-continental highway known as the Autopista Durango-Mazatlan is scheduled for completion. It will reduce travel time from West Mexican growing regions to ports in Texas. This won’t mean the closing or reduced importance of the major Mexican crossing at Nogales, AZ. It could mean more loading opportunities for U.S. truckers for Mexican produce crossing the border into the Lower Rio Grande Valley.
Texas vegetables grossing – about $2500 to Atlanta.
Supplies of trucks from major produce shipping areas around the country appear to be mostly adequate.
One of the most active shipping areas has Mexican produce crossing the border at Nogales, AZ. Heavy volume of vine ripes, roma, plum and grape tomatoes are accounting for about 1,200 truckloads a week, and this doesn’t include many items ranging from melons and various kinds of vegetables.
From the San Luis Valley of Colorado, over 700 truckloads of potatoes are being shipped each week.
South Texas also has significant shipments of produce, whether talking about product moving from the Winter Garden District south of San Antonio (cabbage), or citrus and vegetables from the Lower Rio Grand Valley, not to mention good volume crossing the border from Mexico, ranging from onions and carrots to tropical fruits.
In the Northeast, potatoes loadings from the Presque Isle, ME area are exceeding 100 truckloads per week. Maine potatoes are grossing about $1700 to New York City.
Lower Rio Grande Valley produce – about $1700 to Chicago.
San Luis Valley potatoes – about $2700 to Atlanta.
Nogales produce – about $1200 to Los Angeles.
Avocados should be one of the best buys in your local produce department as produce continues to arrive from Mexico and will continue to do so into May. 
There’s also Chilean avocados which will be on retail shelves into late March. California avocados also are available and will continue well after the imported fruit is no longer available — into September. Even when California has sole possession of the market, prices should remain reasonable. The state expects to produce as much as 415 million pounds of avocados this season, 25 percent more than a year ago.
During the last quarter of 2011 the cost of fresh fruits and vegetables actually declined overall by eight percent, but we may not have necessarily have seen the benefits in our retail stores. Why? A major reason is the cost of fuel keeps rising to get the product delivered.
That means you may not have noticed the savings, for example, with oranges which had an average price of 93 cents per pound in January, compared to 98 cents per pound in December. Another example are tomatoes, which were costing on average $1.54 per pound in January, down a penny from December, but off five cents from the same time a year ago.
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