Posts Tagged “Nogales”

Trucks Tightening as Demand for Produce Loads Build

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California rates to the East Coast topped $9000 this week, at least from the Salinas Valley, where vegetable volume is really cranking up, plus there is building volume with the nearby Watsonville district strawberries and other berries.  Rates also have increased from other regions of California, ranging from the San Joaquin Valley, to Santa Maria and in the Southern part of the state.  Truck supplies have definately tightened up, but so far, my sources are reporting you can get a truck, if you’re willing to pay for it.

In Arizona, rates remain strong as Mexican melons and table grapes are moving in good volume across the border into the USA.

If for some reason, you are stuck in New Mexico, the new crop of storage onions from the Southern part of the state are now being shipped.  Rates are usually less on onions with a significant factor being you can haul them on flatbeds and other non-refrigerated equipment.

Texas remains active for produce loads, in large part thanks to Mexico.  There are a variety of  Mexican vegetables and tropical fruit crossing into South Texas.  The Lower Rio Grande Valley is shipping watermelons, although weather troubles has reduced loading opportunities there.  The Winter Garden District, just south of San Antonio is loading onions.

Salinas Valley vegetables, Watsonville berries – grossing about $9000 and more to Boston.

San Joaquin Valley stone fruit – about $4000 to Atlanta.

Nogales melons and grapes – about $5000 to Chicago.

New Mexico onions – $3000 to Chicago.

Texas produce – $3000 to Atlanta.

 

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Produce Rates Skyrocket from California

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I arrived in Chicago yesterday (June 4)  and the talk both with people in trucking and in the produce industry was the rates had shot up $1,000 on loads from California to Chicago.  There sure was a lot of complaining from produce companies, but big smiles on the folks in transportation.  It should come as no surprise to anyone.  It happens around June 1st every year as produce spring shipments increase and refrigerated equipment comes into short supply, although trucks seemed to be available, if you were willing the pay the price.

The down side to the rising produce rates, is, as every year, the westbound dry freight rate are awful.  Dry freight from Chicago and the Midwest is grossing only $2400 to $2500 to the West Coast — and some of it is even cheaper.  That may pay for the number 2 diesel, but it’s not going to cover the cost of the driver, or the truck.

Another downside is be wary of  companies with which you may not be familiar.  Some receivers will look for any little thing to make a deduction from your load.  I’m talking about things as petty, for example, as the product in your trailer being one degree off the recommended pulp temperture.  That $1000 extra you thought you were making with the rising rates, isn’t going to look near as good when you are paid, if you face a deduction of $200, $300, $400 or more.

As of today, here’s what some loads are paying coming into Chicago.

From California to Chicago:

6 pick ups, five drops, grossing $7,000

5 pick ups, one drop, grossing $6400 (Think I’d take the next load instead, see the next one listed!)

Fresno, 1 pick up, 1 drop $6400

Nogales melons and grapes – $5000 to Chicago

West Texas (90 miles north of Laredo), potatoes – $2400 to $2500 to Chicago.

By Bill Martin

Special thanks to Eclipse Dist., Elburn, IL for the rate information.

Central Florida potatoes – $3000 to Chicago.

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Let the Good (Rates) Times Roll!

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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.

 

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A Western Produce Shipping Roundup

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There are fruits and vegetables being shipping from a number of California districts.   As strawberry volume declines from Ventura County, there’s good volume from Santa Maria, as the Salinas Valley gears up to get rockin’.  The same can be said for Salinas vegetable tonnage, which is building as well.  Southern California is shipping citrus, plus there are avocados and tomatoes from shippers located between L.A. and SanDiego.  Mexican tomatoes are crossing the California border at Otay Mesa.  Coachella Valley grape loadings are on the rise and should be peaking most of June.

CALIFORNIA RATES RATES ARE ON THE RISE.  WE’RE APPROACHING THAT TIME OF YEAR WHEN THE PRODUCE INDUSTRY STARTS PAYING FOR ITS SINS OF LOOKING FOR THE CHEAPEST TRUCK, KICKING OVER LOADS FOR WHICH THEY’VE PAID TOO MUCH FOR PRODUCT AND GENERALLY BEING BAD BOYS TO TRUCKERS.

While Nogales is pretty much finished with vegetables from Mexico, Mexican grapes crossing the Arizona border are hitting full stride.

In Washington state, there’s light volume of potatoes from the Columbia Basin and the nearby Umatilla Basin in Oregon, but onion shipments are about finished….About the only thing that leaves in Washington are Yakima Valley apples and pears.

Washington apples and pears – grossing about $4900 to Cleveland.

Mexican grapes from Nogales – about $4100 to Chicago.

Southern California produce – about $7600 to New York City.

 

 

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Produce Shipments Across the USA

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Looking ahead in Washington state, unless weather changes everything, record cherry shipments are being predicted.  Coming out the Yakima and Wenachee valleys, cherry shipments kick off the second week of June and will continue into mid July.  Meanwhile, if you’re in the region, steady shipments of late season apples and pears continue.

In Nogales, AZ, the U.S. Custom and Border Protection has expanded lanes for trucks importing Mexican produce to eight lanes.  Mexican grapes are now crossing the border and an estimated 8 to 9 million cartons are expected to be shipped to points throughout the U.S. and Canada.

Looking down the road a bit, vine ripe tomatoes out of Southeastern Arkansas could start shipping one to two weeks early this year.  Light volume is expected by late May, with good volume coming within a week or so.  Shipments are expected to continue into mid-July.

Blueberry loads are now available from Southern Georgia, joining other items ranging from greens to squash, cucumbers and peppers.  Southern Georgia’s Vidalia onions are now in peak movement to markets, particularly in the eastern half of the country.

In California, grapes and melons are coming out the desert, while Southern California continues to ship berries, avocados, citrus and some veggies.   Look for building volume on vegetables from the Salinas Valley….May should be an interest month as we monitor building produce volume, availablilty of refrigerated equipment, and its effect on freight rates…..As always, truckers’ abilities to find westbound freight to pick up fruits and vegetables in California and the Northwest will be a challenge.

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Mexican Grapes Crossing Border Soon at Nogales

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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.

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Best Bets for Produce Loads

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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.

 

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More Produce Imports from Mexico are Coming

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After the interstate highway system was born in the 1950s under the Eisenhower Administration, it allowed the United States to explode in economic power because of its vast coast-to-coast infrastructure in the ensuing decades.

Although it will be on a much smaller scale, we’re going to see something similar with Mexican produce and other goods coming into the United States.

By the end of 2012, 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, including McAllen/Pharr.  This will provide easier, faster access of Mexican products to the eastern half of the United States.

Meanwhile, over $200 million is being invested in expanding the Mariposa Land Port of Entry at Nogales, AZ.  It has a projected completion in 2014.

Another reason I see increasing produce volume to the U.S. from Mexico is because many of the growing operations south of the border are financially backed and/or owned  by U.S. produce growing/shipping operations.  Cheaper labor costs also factor into this growth.

This should result in more loading opportunites for American produce haulers in the coming years.  The unanswered question a this time, is how much of this produce in the future will be delivered by Mexican trucking operations since restrictions on border crossings, and Mexican truckers operating in the U.S., have been loosened.

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Produce Rates Increasing Around the Country

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A mild winter, great spring and increasing produce volume is gradually increasing demand for refrigerated equipment in several areas of the country.  This is resulting in rising freight rates, although higher diesel fuel prices is certainly putting a damper on many truckers getting too excited about these changes.

In Florida, we’ve seen rate increases of 10 to 15 percent in the past week as volume continues to build for spring vegetables, and red potatoes.  Watermelon shipments are underway, but we’re another week or so away from good volume.

In southeast Georgia, light shipments of Vidalia onions are occurring, but decent volume won’t hit until around April 15th.

On the West coast, we’re seeing a few more $7000  freight rates to New York City and Boston, but the majority of rates remain a few hundred dollars less.    But this is an indicator of what’s coming as volume continues to build from Southern California, the San Joaquin Valley as well as the Salinas area.

Mexican vegetables, melons and mangos crossing the border at Nogales, AZ are showing small rate increases as this area enters it’s final peak volume month for shipments.

I keep hearing about shortages of equipment for hauling sweet potatoes out of eastern areas of North Carolina, but there seems to be no increases in the freight rates.  Could there be a correlation?  Duh!

North Carolina sweet potatoes – grossing about $2250 to Chicago.

Southern California, avocados, berries, etc – about $6800 to New York City.

Nogales vegetables – about $5800 to Philadelphia.

South Florida veggies – about $3600 to Boston

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Nationwide Produce Shipments

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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.

 

 

 

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