Posts Tagged “truck availability”
By Isabella Silva, ALC Marketing Coordinator
Recent storms in California have significantly impacted agricultural operations. However, the U.S. Department of Agriculture (USDA) is ready with technical and financial assistance to aid farmers and livestock producers in recovering from these adverse weather events. California’s agricultural sector has demonstrated remarkable resilience, supported by infrastructure enhancements, crop diversification, government assistance programs, and ongoing research and innovation efforts. It’s fascinating to note that California was in a severe drought just three years ago, highlighting the striking contrast in weather patterns. Nevertheless, both extremes resulted in similar agricultural shifts, noting the industry’s adaptability. This article explores the sector’s recovery from floods and projects California’s demand for refrigerated trucks.
According to the UC Agriculture and Natural Resources, investments in infrastructure, such as levees and irrigation systems, have played a crucial role in mitigating flood damage and protecting agricultural lands. Farmers in California have implemented crop diversification strategies by planting flood-tolerant varieties to minimize losses. Partnering with Full Belly Farm in Yolo County, California, the USDA California Climate Hub conducted an extensive case study emphasizing adaptation planning practices as opportunities to alleviate the impacts of extreme weather conditions. Their focus on building soil organic matter not only improves crop fertility, but also increases soil water retention and holding capacity. Ongoing research endeavors aim to develop flood-resistant crop varieties and innovative farming techniques, further enhancing the industry’s resilience against future flood events. As government-sponsored insurance and assistance programs offer crucial financial support to farmers, it’s important to see how this reflects the transportation industry.
DAT reported citrus, almonds, avocado, and strawberry crops are expected to be impacted and have already contributed to 84% fewer truckloads of produce compared to this time last year. However, there’s still ample time for the 2024 produce season to regain its momentum, even with the national produce volumes down 17% from last year. With more resources, solutions, and research each year, California is continually improving its ability to address flooding challenges. This suggests a potential increase in the demand for refrigerated trucks in California’s agricultural supply chain, a positive sign for the industry’s recovery.
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Isabella Silva graduated from St. Edward’s University in 2022 with a BA in Communication, complemented by minors in Psychology and Health Communication. In July of the same year, she began her career at the Allen Lund Company in the Marketing department. Isabella is set to start her MS in Public Relations Innovation, Strategy, and Management at the University of Southern California in May.
isabella.silva@allenlund.com
Hauling Idaho potatoes by truck this season is coming with higher freight rates.
Between early August to October 9, the USDA reported the average rate for refrigerated trucks from Idaho to Atlanta rose from $4,675 to $6,500, a gain of 39%. This year’s October rate was up about 40% compared with a year ago.
The truck rate from Idaho to Boston rose from $7,000 in early August to $8,500 by October 9, a gain of 21%. Compared with the same time a year ago, the October 2021 rate was 37% higher.
Refrigerated truck rates from Idaho to Chicago were rated at $4,500 on October 9, 25% up from early August and 32% above the same time a year ago.
The Idaho Potato Commission of Eagle, ID expresses concerns over having adequate truck supplies during the holiday season.
Heading towards winter the commission is urging retailers to order early in order to build potato inventories, because transportation is going to be a challenge.
The commission reports factors which should favor truck availability include higher freight rates, driver signing bonuses and strong truck demand. Factors that could decrease truckload available range from slowed truck manufacturing because of part shortages and labor shortages.
Increasing demand for truck capacity is seen with the economic stimulus, retail spending, inventory replenishment, consumer sentiment, and housing.
However, the federal stimulus package enticed some drivers and warehouse workers to make money by “sitting on their couch” as opposed to joining the workforce, the commission reported.
Owner operators now account for 62% of truckers. Some observers predicted more owner operator entering the freight business.
C.H. Robinson of Prairie Eden, MN is projecting a 5% to 6% growth in spot rates from early September to the end of the year. Less-than truck load rates remain elevated compared to the historical five-year average and the truck driver shortage is not easing.
The company notes reducing wait time for drivers should be one aim, and investing in good facilities is another.
Twin Falls, Idaho potatoes – grossing about $8500 to New York City.
“Name me a city or a state and I will tell you trucks have been tight,” states Bob Rose of the Allen Lund Company LLC.
Rose should know. He is the manager of the firm’s San Francisco office and has been with the transportation and logistics company 31 years. Based in LaCanada, CA, Allen Lund Company has 34 offices nationwide, working with 21,000 trucking companies, providing it with a keen pulse of truck availability.
The last three quarters of 2017 rates have been stronger, reflecting increased demand for equipment.
Allen Lund Company moves about 90,000 loads a year with a significant portion of this being perishables.
Rose doesn’t expect truck availability to improve any the rest of the year, and points out holidays such as Thanksgiving (November 23rd) always means increased demand for fresh fruits and vegetables and refrigerated trucks.
The ethnic population in the U.S. also is a factor with higher volume and demand for equipment to deliver product for their holiday observances.
“Not everyone can haul produce,” says Rose, in reference to the extra demands and knowledge required of drivers hauling perishables.
He also expresses concerns over the looming electronic logging device (ELD) requirement mandate, which the Commercial Vehicle Safety Alliance will begin phasing in December 18th unless it is delayed, as many hope. Plans to start using out-of-service criteria connected with the ELD mandate begins April 1st.
While the large carriers and their trucking associations tend to support ELDs, owner operators and small fleets often view it as limiting their ability to provide superior service, increases their costs of operation, and being another rule limiting their freedom of choice as professional drivers.
“Not a lot of the large carriers are hauling produce,” observes Rose. “Most of it is transported by owner operators and small trucking companies.”
He believes the tight truck supplies are resulting primarily due to the industry being at or near full capacity.
“We talk a lot about truck shortages, but with ELDs, we will feel it. But no one yet knows how ELDs will be enforced,” Rose says.
As a result, he notes Allen Lund Company is looking for ways to reduce the costly delays too often found at loading and unloading docks. They also are seeking improved routes for trucking since customers are maintaining lower inventories and want faster deliveries.
“I want to figure out how to pay drivers more so they can truck less and still support their families,” Rose concludes.
In a turn around from a year ago Red River Valley potato grower-shippers in North Dakota and Minnesota anticipate plenty of potato loads for hauling this season. It would be a terrific improvement for both growers, shippers and truckers from a rain-soaked 2016 season.
Last year during the 2017 growing season, dry soil made growing and harvesting difficult although the abundant rainfall from 2016 had created good planting conditions. The result was a 30 percent drop in potato shipments.
A couple of timely downpours this past September helped the digging get started on time.
The Red River Valley potato harvest generally runs for about six weeks in September and October, with shipments typically lasting through spring.
The Red River Valley includes about 80,000 acres in North Dakota and 45,000 in Minnesota. Potato volume for the fresh market typically totals about 7 million hundredweight (cwt).
A significant change in the valley this season is formation of H & S FreshPak in Hoople, ND, a new company created when J.G. Hall & Sons of Hoople and O.C. Schulz & Sons Inc. of Crystal, ND, who purchased Northern Valley Growers of Hoople and changed the name to H & S.
Truck availability has been a concern in the valley this season, a situation that has a history. Due to the low population of North Dakota, getting loads into the valley is often a challenge. Other factors such as the recovery from hurricanes in Texas and Florida hasn’t helped the availability of trucks.
The valley has over 250 growers producing more than 40 million cwt. of potatoes annually, with about 17 percent of the product shipped to the fresh market. The region is the third largest potato growing area in the U.S.
Yellow variety potatoes continue to increase in popularity, mostly at the expense of Russets and whites, neither of which valley growers have produced in a number of years.
While U.S. red potato shipments increased about 14 percent between 2009 – 2015, white potato shipments plunged 43.3 percent.
The co-op Associated Potato Growers Inc. of Grand Forks, ND continues to be the valley’s largest potato shipper. Of the dozen wash plants in the valley, two of the other largest shippers are NoKota Packers, Inc. of Buxton, ND and J.G. Hall of Hoople.
Potato shipments from Grand Forks – grossing about $4800 to New York City.