Posts Tagged “rail”
California is now shipping an astounding 7 million trays of strawberries per week, which should set another record for loadings by the time the season ends. Most loadings are taking place from the Santa Maria area and the Watsonville district.
The Salinas Valley continues to ship a wide variety of vegetables. Head lettuce loadings are providing the heaviest volume, averaging about 1,500 truckloads per week. However, there’s lots of other items ranging from various types of lettuce, to cauliflower, broccoli, etc.
Kern County
This week most potato sheds should be hitting full production. Shipments of fresh potatoes from the southern region of the San Joaquin Valley should continue into early July.
There has been a 10%-plus drop in acreage of reds, whites and yellow spuds. More specifically: whites are down 13%; reds, as well as yellows are off 12%. The nationally over produced (thanks primarily to Idaho) russet acreage in Kern County is down a whopping 65 percent.
Russet acreage in Kern County has dropped to about 1,000 acres from a high of 12,000 to 14,000 acres about 20 years ago.
While Kern County shippers are predicting enough transportation with trucks, rail, intermodal and Railex, they say it will be expensive.
Kern County potatoes and carrots – grossing about $5200 to Chicago.
Salinas Valley veggies – about $7300 to New York City.
Better treatment of truckers was a primary theme at a session titled, Transportation Best Practices for the Produce Industry, 
held during the annual show of the United Fresh Produce Association, May 1, at the Dallas (TX) Convention Center.
The theme of the meeting is based around a set of transportation guidelines released earlier this year by The North American Produce Transportation Working Group (NAPTWG). The group has released a document combining various transportation guidelines for the produce industry to use, with the end result being better treatment of truckers leading to more refrigerated equipment and drivers being available to haul fresh fruits and vegetables.
A member of the audience tells the panel there is a shortage of 200,000 drivers and “we’ve got some problems coming up” with an improving economy.
Panel member Ken Lund, vice president, support services, Allen Lund Co., said the average age for truckers is over 55, and not that many drivers are entering the industry. There are 2.7 million Class 8 trucks and 98 percent of those are companies with 10 trucks or less. Most refrigerated produce haulers have a one truck operation, he says.
“We want drivers to be treated well,” Lund states. He adds that today more retail receivers are treating drivers better.”
Lund notes the USA is looking at an eight and one-half to nine percent unemployment rate, yet there are “tens of thousands of openings” in transportation. “But there are not a lot of people entering the industry and we want to make it better for them.”
He points out the Allen Lund Co. has a transportation education program for drivers providing them various kinds of information such as how to take the pulp temperature of produce to ensure product being loaded has been pre-cooled.
Panel member Frank Swanson, category manager, U.S. Foods said, food safety is a concern for his company. “We look at how to get transportation companies that take care of the product and maintain the correct temperature.”
Panelist Ken Nabel, president, Kingston and Associates Marketing, LLC points out a lot of military personnel are coming home, receiving discharges and should provide a lot of potential for jobs as drivers.
Another member of the audience asks the panel what is the leading cause of produce loads being rejected?
Bret Smith, director of commodities procurement, Safeway Inc., responds the majority of kicked loads results from temperature problems with fruits and vegetables, as well as issues relating to quality.
“We need to know if a problem exists in route, not when the load arrives,” Smith says. He adds having a driver check list, plus ensuring the driver has been trained to “check all components” associated with the load helps to avoid problems with claims.
Lund points out that there are seperate points on the NAPTWG website for shippers, truckers and receivers. Those points can be found at: www.naptwg.org
What is the number one issue for produce transportation in 2012?
Nabel believes it is the cost of diesel fuel.
Smith cites “having good companies (carriers) with a good driver base.” He also says the high cost of goods Safeway must purchase for its stores is a concern. On the plus side, Smith believes docks used to consolidate loads are becoming more efficient, which is making consolidated loads more attractive to drivers.
Lund, obviously looking weeks ahead to the peak spring and summer shipping season for produce states, “When rates get high, a lot of people jump into the market (especially) when rates hit $10,000 from California to New York….Prices (rates) have gone up. Ten years ago it was $3,000 from California to Atlanta; now it’s $10,000. If we had those prices 10 years ago….” he notes
The transportation broker then adds, “Thre are a lot of shady brokers out there and a lot of double brokering going on.” Lund relates a lot of times a shipper will list the Allen Lund Co. on the document as a shipper. “We are not a shipper, we’re a broker. This is where a lot of theft occurs, as well as double brokering.”
On another topic, the panel discusses railroads and its role in hauling fresh produce.
Smith of Safeway says the retail chain has not been very successful using rail, although the company continues to consider it.
Swanson of U.S. Food cites the service of RailEx, a company working with major railroads, providing coast-to-coast unit trains. He likes the RailEx “door-to-door” service, but says over all the service is very limited.
Lund points out that only one to two percent of the nation’s fresh produce is shipped by rail.
“Some people on Capitol Hill think 50 percent of produce should be on the rails. But the infrastructure changes would be monumental,” Lund says.
Ending the session was an audience member asking the panel about 18 wheelers being powered by natural gas.
Lund says there has been a lot of testing in this area, however the infrastructure for cross country trucking is not available. Most trucks using natural gas are doing local hauls.
(For more information on the NAPTWG, see press release published on HaulProduce, titled, Transportation Group Releases Best Practices. It ran on Jan. 17, 2012)