Posts Tagged “produce haulers”
The U.S. balance of trade for fruits and vegetables is swinging heavily to imports, with avocados and berries seeing huge growth over the past decade, according to the U.S. Department of Agriculture. While this may not help improve the country’s trade deficite, it means increased loading opportunities for produce haulers.
The USDA in its annual report of trade projections, estimates the trade deficit in fresh fruits and vegetables will grow from about $7.6 billion in 2014 to $16.5 billion by 2024.
The total value of fresh fruit and vegetable exports will grow from $7.3 billion in 2014 to $10.7 billion in 2024, while imports will grow even faster, climbing from $14.9 billion in 2014 to $27.2 billion in 2024.
The projections are built on trade trends over the past 10 years.
The last time the U.S. had a trade surplus in fresh fruits and vegetables was 1980, when the margin of exports over imports was $25 million. By 1990, the trade deficit in fresh fruits and vegetables was $530 million, increasing to $1.8 billion by 2000 and $6.2 billion by 2010.
Imports will supply 53 percent of U.S. fruits and nuts by 2024, up from 45 percent in 2014, while the USDA said the share of vegetables from imports will rise from 19 percent in 2014 to 26 percent in 2024.
Lower trade barriers have boosted U.S. exports and imports.
Climbing imports
“Twenty years ago you never would have thought of having citrus (imports) in the summer or grapes in November,” said Mayda Sotomayor, CEO of Seald Sweet International, Vero Beach, Fla. “You just had gaps, and consumers lived with gaps.”
Today, Sotomayor said those gaps are now mostly gone, thanks to new varieties, growing areas and storage technology.
Spring Florida produce shipments are shifting towards high gear!
Florida produce shipments for this spring are shaping up to be a good one for produce haulers because of excellent weather and growing conditions.
Vegetables being harvested in the Sunshine State range from tomatoes to snap beans, sweet corn, cabbage, cucumbers, carrots, radishes, celery, squash, lettuce and other leaf vegetables. Florida citrus shipments continue, while the strawberry harvest has concluded, but blueberry loadings are ramping up.
The state grows and ships over 350 commodities.
Weather didn’t pose any significant obstacles to growers this season as the state has experienced a mild winter.
Tomato shipments for both grape and cherry tomatoes from the Palmetto/Ruskin areas of Florida should get underway about April 10th, while romas and rounds should follow around April 17-20.
Tomato shipments should reach seasonal norms the week of April 6 or the week of April 13.
South Florida fresh potato shipments commenced in early February and will continue until early to mid-May. Peak Florida potato shipments are occuring during March and April.
Florida red, yellow and white potatoes – grossing about $2975 to Dallas.
Florida mixed vegetables – grossing about $3400 to New York City and about $3100 to Chicago.
There is angst among some in the Canadian produce industry because the rules set up by an entity of America’s U.S. Department of Agriculture (USDA) has changed some rules regarding protection they receive when there is a dispute involving a produce transaction. However, it could be worse. What if the Canadians had absolutely no protection against unfair practices, something U.S. produce truckers have never had.
The U.S. government recently took away a trading privilege from Canadian produce companies that has been available for more than 75 years. The result is fruit and vegetable producers risk losing thousands of dollars, closing their businesses, or moving across the border into the U.S.
Canadian produce companies that were owed money from U.S. companies could pay $100 to start a legal process, under the Perishable Agricultural Commodities Act (PACA). This would happen when U.S. companies didn’t pay their bills on time, at all, or when the company declared bankruptcy.
However, in October 2014, the United States withdrew Canada’s privileged access to PACA after the Canadian government neglected to implement the same privileges this side of the border. Now Canadian fruit and vegetable producers have to pay double the amount of money they’re owed to get access to the unpaid funds. If they’re owed $100,000 for cucumbers for example, they have to pay $200,000 as a bond to get the process started.
For decades, this writer has advocated owner operators, small fleets and large fleets hauling fresh fruits and vegetables be afforded similar protections the USDA’s PACA provides for the produce industry. This would be invaluable for produce truckers facing unfair claims or deductions or rejected loads. However, the produce industry has always fought against such measures and the PACA has certainly shown no interest.
About the only recourse for produce haulers is going through the court system, which can be costly, time consuming and particularly difficult considering the fact the problem may have taken place thousands miles from the trucker’s home base. Otherwise, hope and pray you have a good truck broker or shipper backing you when such issues arise. — Bill Martin
Mexico produce shipments are crossing the U.S. border at Nogales, AZ in good volume – at least with several items.
The heaviest amount of product is with cucumbers, bell peppers, squash and tomatoes. Cucumbers are averaging around 675 truck loads per week. However, keep in mind most of these items are shipped as mixers, instead of straight loads of product. In fact, a lot of trucks arrive at Nogales to fill out a load, after multiple picks up California and other parts of Arizona.
Tomatoes are biggest volume right now, averaging nearly 1,000 truck loads per week. The biggest tonnage is with vine ripes and plum tomatoes, with much lesser amounts of grape and cherry tomatoes.
There also are decent crossings of Mexican bell peppers (600 truck loads weekly) and nearly as much volume with squash. Much lighter crossings exist with Mexican watermelons, beans, eggplant and other types of peppers than bell peppers.
With the completion of the Mariposa Land Port of Entry at Nogales last year, arrivals of Mexican vegetables has been more predictable. Because of the finish of the eight-year-long construction project, fewer delays are being experienced by produce haulers picking up product one of the dozens of warehouses in Nogales.
The upgraded port of entry was designed to increase traffic flow at the border because of better facilities, new Customs and Border Protection and inspection procedures. The port now is able to inspect about 4000 trucks per day through eight primary commercial booths and 56 secondary commercial inspection bays.
Nogales produce shipments – grossing about $1300 to L.A.; $5600 to New York City.
At the Hunts Point Terminal Produce Market there are four long rows. On the ground floor are the sales offices and docks. Upstairs one can stand at one end of a hallway one-third of a mile long and the other end is so far away the walls, floor and ceiling appear to come together. On each side of the massive hallway are the offices of the wholesalers.
In 1967, the new Hunts Point produce market had 125 wholesalers receiving fruits and vegetables. Today, due to mergers, consolidations and companies falling by the wayside, there are only 40 wholesalers, although their operations tend to be much larger than in the early days.
The largest company on the market is D’Arrigo Bros. Co. of New York Inc., which has 30 units. However, it is even larger when considering the family owned operation also has 30,000 acres of farming in California and Arizona. At the same time D’Arrigo and other wholesalers service thousands of produce buyers from all walks of life on a daily basis.
In some form or another, they all are dependent on the reliable service of the trucking industry to be successful in their own businesses.
I’ve known Matthew D’Arrigo, vice president of D’Arrigo Bros. for nearly 30 years. The company has a great reputation not only in the produce industry, but with produce truckers who have delivered product to the operation. D’Arrigo knows the livelihood of the company depends in part on good, reliable service from produce haulers. His company treats truckers accordingly.
He speaks of the continuing rise in costs of transportation and recalls late June 2014 when some produce rates from California to New York City hit $10,000. Many produce folks who pay the freight rates don’t necessarily like the higher costs, but rationalize their thinking knowing their competitors are pretty much paying the same rate for a truck.
Wholesalers at Hunts Point tend to depend upon truck brokers and logistics companies to handle their transportation needs. Most wholesalers simply don’t have the time, expertise or inclination to arrange the trucks themselves. — Bill Martin
(This is the third of a four-part series based upon my visit to Hunt Point on Dec. 4, 2014)
Increased loading opportunities are taking place for Florida strawberries from the Plant City area, while arrivals of Chilean imported stone fruit are occurring on both coasts of the United States.
Florida strawberry shipments got off to a show start this season but good volume finally arrived the week of December 22nd. While volume in late December and early January was high, produce haulers should expect a significant slowing of shipments to begin in mid-January. Volume for Florida strawberry shipments could be off for a couple of weeks before picking back up towards the end of January. Heading into Valentine’s Day (February 14th), truckers should expect bigger volume.
Florida strawberries, vegetables and tomatoes – grossing about $2800 to New York City.
Chilean Fruit
Importers of Chilean stone fruit expect a strong rebound from last season’s freeze-damaged crops. Break bulk shipments of Chilean peaches, nectarines and plums began arriving early the week of December 29th at the Port of Long Beach.
Shipments were running seven days ahead of last year. Volumes this season should be at least in line with the 5-year average but much higher than last season, when fruit was hard hit by freezes.
Philadelphia received its first shipments for Chilean peaches, nectarines and plums the weekend of Jan. 3rd. Early varieties of Chilean peaches would start arriving at East Coast ports this week, with nectarine volumes following in early February and plum volumes in mid-February.
As we rapidly approach the New Year, vegetable volume will be increasing from Mexico through Nogales, as well as the California desert. Here also is a summary of what recent rains in drought stricken California will mean for produce haulers in the future.
Mexican vine-ripe tomato shipments will be moving into volume shipments around January 1st.
Mexican strawberry volume is increasing along with strawberries from the Plant City, FL area as well as fruit from Ventura County, CA.
Southern California strawberry shipments started the week of December 15th with very light volume. However, increasing the volume has been hampered due to rainy, cool weather. Mexican strawberry shipments have been steadily increasing, but decent volume won’t be available until the first or second week of January.
California Drought Update
A week of storms that swept through California in mid-December came nowhere close to ending the state’s drought. But with continued warm weather in the forecast, conditions are good for rapid crop growth — and possible winter shipping gaps. Celery out of Oxnard and iceberg lettuce out of Yuma, Ariz. are both coming on fast — where less rain fell but warm weather prevailed.
It has taken a crop that was well ahead of schedule and made it even more so,. The combination of rain, with mild conditions has created accelerated growth that is unprecedented. This is expected to result in shipping gaps during the next several weeks.
A NASA Jet Propulsion Laboratory study released Dec. 16 found the water storage in the Sacramento and San Joaquin River basins was 11 trillion gallons below normal seasonal levels. It could take years to replenish that. The study was based on satellite data from earlier in 2014.
Mexican vegetables crossing at Nogales – grossing about $1000 to Los Angeles.
Imperial Valley/Yuma district vegetables – grossing about $5300 to Atlanta.
Since our initial report October 27th on a devastating freeze in Chile, it is now appearing the damage was not nearly as serious as initially thought.
A highly damaging freeze could drastically reduce imported Chilean winter produce — and hauling opportunities for American produce haulers.
Chile was hit hard a year ago by freezing temperatures, and this time around it doesn’t seem as bad.
While limited volume of Chilean blueberries have been arriving in the U.S. by air since early October, it will be early December when “blues” begin arriving by boat and significant volume will occur.
Besides blueberries, kiwifruit, cherries and apples had been cited as being adversely affected by the cold. The freeze occurred October 8-9.
Chile is perhaps been known for its table grapes, which normally arrive in good volume at U.S. ports during January, February and March. However, the vast majority of Chilean grape vineyards are located much further north in Chile than where the October freeze occurred.
More updated information on Chilean winter imports should become available in the weeks ahead. Chile is a primary exporter of fresh produce to the U.S., with produce arriving at ports on both coasts, particularly during the winter months. This is possible since that South American country has opposite growing seasons from the United States.
When produce haulers think of loading storage onions, the Northwest often comes to mind first, since it leads the nation in volume in this category.
The new season for Northwest onions is upon us and shipments are expected to be about normal.
Oregon was the nation’s second-largest producer of storage onions in 2012. The Beaver State shipped 24 percent of national supplies. Storage onions ranked 10th on the state’s Top 40 Commodities list for 2012.
Malheur County onions are part of the Idaho-Eastern Oregon Onion growing region and represent significant volume for the state. A total of 10,600 acres of onions were harvested in Malheur County. About 8,700 acres were harvested for the fresh market, of which around 5,133 thousand hundredweight (cwt) were produced.
Meanwhile, Washington state ranked 11th nationally for all onion shipments in 2012.
Washington ranked second nationally for summer onion shipments, providing the nation with 23.1 percent of its supplies. In 2012, Washington producers harvested 3,100 acres of summer non-storage onions with production set at 1,147 cwt.
During the same crop year, producers harvested 23,500 acres of summer storage onions with production set at 13,865 cwt.
Onions are grossing about $3500 to Chicago.
In an update from last week’s report, the desert shipping areas for winter vegetables in California and Arizona are pretty much history. Heat in the desert is taking its toll on any leaf lettuce left, and it’s best to avoid hauling that product. The transition to the San Joaquin Valley, Salinas Valley and the Santa Maria district continues and light volume loadings are underway.
In the weeks ahead, produce haulers should see a dramatic improvement for produce loads. Not only is California weather bringing the crops along nicely, but weather around the country is on the mend. That means more consumers getting out more often, buying fresh fruits and veggies, which increases demand for product. It all translates into more produce shipments, and higher freight rates.
Light shipments of broccoli and cauliflower are coming out of Salinas and some oberservers are predicting record volume this spring.
The Central San Joaquin Valley produce shipments are limited with broccoli and cauliflower, while light volume of head lettuce gets underway around March 21st in the Westside district. These loadings out of the Huron area should continue through mid April.
Salinas Valley vegetables – grossing about $6600 to New York City.