Transportation

Farmers, Truckers and Gear Heads Rejoice: EPA Rolls Out Streamlined Diesel Engine Fluid Guidelines

Tue, 12 Aug 2025 18:04:22 GMT

EPA is rolling out new guidance for manufacturers of farm equipment and other heavy-duty vehicles, removing regulatory red tape requiring diesel-powered farm equipment to reduce engine torque dramatically when a problem arises with the machine’s Diesel Exhaust Fluid (DEF) system.

You can read EPA’s statement on the announcement here.

The new rule making goes into effect immediately for all new diesel engines on model year 2027 machines. It should also be noted the new guidance from EPA is voluntary for all non road equipment. Ultimately, each manufacturer will have the right to choose whether it implements the new inducement strategy or maintains the status quo with its own machines.

To fix the problem for farm machinery already in the field, EPA’s new guidance, developed in collaboration with farm equipment manufacturers, will work to ensure necessary software changes can be made on the existing fleet.

(EPA)

EPA administrator Lee Zeldin says now all non-road equipment, like farm tractors, combines and sprayers, must be configured so there is no impact on engine power for up to 36 hours when a DEF system malfunction occurs. Once 36 engine hours have passed, a 25% reduction in engine torque will go into effect until the machine is serviced. If the farm equipment is not fixed within 100 engine hours, then a 50% reduction in torque is activated until the machine can be serviced.

Additionally, farm equipment can be restarted with full engine power three times for up to 30 minutes after inducement, according to the EPA release.

“This is the first crack in the ice toward saying we don’t need these expensive systems on our farm equipment,” says Ben Reinsche, owner, Blue Diamond Farming Company in Jesup, Iowa. “We don’t need to immediately shut off an engine or be restricted for 36 hours if you have DEF unavailable or a malfunction.

“This is a positive step and maybe a formative step toward saying that having these emission standards on farm or off-road equipment is not critically necessary,” adds Reinsche. “There are so many other things farmers can do that are planet positive, like using conservation and sustainability practices, rather than having an after treatment system on our diesel engines.”

Small Business Administration (SBA) leader Kelly Loeffler says the new rule will save 1.8 million family farms across America a staggering $727 million per year while offering “vital financial and operational certainty.”

“This announcement today is such a big deal, especially on behalf of our farmers and ranchers,” says USDA secretary Brook Rollins. “At a time when our ag sector is really hurting, our farmers have had to endure a 30% cost increase in inputs, and a $30 billion Biden-era trade deficit, these everyday regulations being lifted makes such a difference.”

The new guidance greatly reduces a machine setting known as DEF derating and allows operators more time to secure DEF, refuel and make repairs. The new guidance also reportedly retains the environmental benefits of Tier 4 engine and DEF regulations for farm equipment and trucks.

“Today we are taking another important step forward by undoing these diesel fluid guidelines that have hurt our farmers and small rural businesses,” says U.S. Senator Joni Ernst (R-Iowa). “Not only will these new guidelines save family-run farms hundreds of millions of dollars per year, but it is also just common sense, folks. No farmer should have their tractor come to a halt in the middle of a field due to Green New Deal-style regulations from Washington.”

How Did We Get Here?

EPA ushered in DEF requirements for large farm equipment when it enacted broader Tier 4 emissions standards in 2004.

Tier 4 Interim rules, which required DEF for farm machines 750 horsepower and up, then went into effect in 2008.

In 2015, EPA’s final Tier 4 regulations were put in place, meaning all new non-road diesel engines — regardless of horsepower rating — had to comply with new emissions standards.

Curious where your farm equipment is made? Check out Farm Journal’s “Who Makes What Where” feature to learn more.

Why Do Many Farmers Hate Using Diesel Exhaust Fluid (DEF)?

American farmers say they detest using DEF due to the challenges and additional fuel cost it tacks onto their operations.

Here are some reasons farmers aren’t big fans of DEF:

Higher Costs and More Maintenance: DEF adds on extra materials costs for machinery-based field work. Farmers must purchase large amounts of fluid, and the Selective Catalytic Reduction (SCR) framework that processes DEF is prone to malfunctions and expensive to repair. Often a simple-but-unexpected repair can pop up out of nowhere and end up costing farmers thousands of dollars and leave equipment inoperable.
Field Work Interruptions: If a tractor runs out of DEF or if the system breaks down, under the now-defunct previous guidelines engine power was greatly reduced, which is known by many farmers as “going into limp mode.” For farmers who rely on their equipment to operate consistently and reliably during planting and harvesting, any issue quickly becomes a major headache.
Storage Issues: DEF has a limited shelf life and is sensitive to temperature ups and downs. A quick Google search says DEF freezes at around 12°F and can degrade if stored in temperatures above 86°F. And who wants to look at a giant pallet of DEF cartons stacked in their machinery barn? Nobody, that’s who.
Contamination/Quality Control: DEF fluid must be pure and free of contaminants. Accidentally using the wrong type or getting foreign substances in the tank during refilling can wreak havoc throughout the system, leading to repairs and downtime.
Engine Performance Concerns: There are farmers who believe newer emissions systems, including those that use DEF, reduce the machine’s total power output and lower fuel efficiency.

Your Next Read: MAHA Policy Announcement Delayed, Agriculture Waits For Any Implications From Earlier Report

How Data Can Drive Cold Chain Efficiency

Mon, 04 Aug 2025 21:55:15 GMT

Scott Blair, senior digital program manager for Lynx Fleet telematics, a platform by cold chain transport company Carrier Transicold, has a story that convinced one customer of the value of telematics built into transport refrigeration units.

“They had a very high value seafood-based cargo sitting in a parking lot. The truck had detached and the refrigeration unit was still running, but they couldn’t unload it at the time. Well, somebody went out and turned it off. In the middle of summer — in the South,” he says.

“They didn’t discover it until a couple of weeks had gone by.”

Blair adds that, whenever he’s having a bad day, he tells himself it could be worse.

“I could be the guy who had to go in there and clean that out,” he says.

Ever after that, the customer was interested in understanding where their equipment was and knowing the state of their cargo, Blair says.

Now, more shippers who rely on the cold chain, including the fresh produce industry, have increased options when it comes to knowing and controlling the state of their cargo.

Updates to Lynx Fleet Telematics

In mid-July, Carrier Transicold launched an update to its Lynx Fleet telematics platform, what Blair calls a fleet management system. The update includes new analytic and diagnostic capabilities, according to the company.

Key among these updates are:

The “TRU Health” feature, which constantly collects performance information on equipped transport refrigeration units such as active alarms, battery voltage, fuel levels and other details. These are used to develop a TRU health score for the unit. The feature displays the scores across a fleet on a single dashboard.
A new module that supports up to five temperature sensors for multi-zone reefers.
The ability to support GPS and sensors for dry vans and other equipment, including TRUs built by other manufacturers.

While Lynx Fleet was developed specifically for Carrier Transicold TRUs, which come “Lynx Fleet ready” with telemetric hardware already installed, Blair says the move toward support of non-Carrier equipment is not common for telematic programs, but he adds the technology has been evolving alongside the industry.

“A lot of companies like to have multiple sources for their suppliers and transport refrigeration is no different,” he explains. “Some fleets are heavily mixed with carriers and other manufacturers, but they still want to know where and how their assets are doing, but they don’t want to go to three or four different systems. They like to be able to have it in one place, so it’s becoming more common now.”

The company says customers with fleets including different vehicle types and TRU suppliers can track location, reefer temperatures and more using the Lynx Fleet platform. It added that the update’s new API tool kit allows Lynx Fleet data to be shared with most major transportation management systems.

The Why Behind the Update

Like many software development teams, the Lynx Fleet telematics team uses the agile system. This approach to project management is an iterative, adaptive style that ideally delivers a usable product rapidly while continuing to fine-tune the product to customer needs.

Blair says being agile “allows us to recognize and integrate customer input quickly.” That’s how and why the most recent Lynx Fleet update happened, he adds.

“It’s a natural evolution,” Blair says. “This next-gen platform really helps us put something in place that gives us room to grow. We’re not just looking at what we do now; we’re looking at what we’re going to do in two, three, four, five years from now.”

Looking to that future of telematics needs, Blair says he sees the industry at an inflection point when it comes to connectivity devices and programs. Everything, from the stove and vacuum droid in consumers’ homes to cars and reefers on the road, is increasingly connected and trackable. The volume of data, Blair says, is getting overwhelming.

“I think that we are, right now, asking ‘How do you turn all of this data into actionable information? How do you give people information that they can base decisions on? Decisions that helped them run their business. Decisions that help them reduce their costs and increase their efficiencies. How can we do that?’” he says.

Blair says the new features, like TRU Health, give owners more control to go along with the greater volume of data about what is happening with the TRU itself.

“If you’re an operation that’s moving products across the country, knowing the health of that unit before you spend all the time to cool it and to load it and to put it out onto the road, you have some level of confidence that it’s going to be OK until it gets to where it’s going,” he says.

But TRUs aren’t just employed in keeping products cold while getting them to where they need to be. They also get used as short-term cold storage. Blair notes
that “we see that a lot in a lot of places, especially in farmers markets and those kind of settings.”

“Those trailers will sit for a long period of time, and if they’re not connected to a tractor or the telematics unit is on the tractor, there’s no way of understanding or knowing the conditions or what’s going on inside of that trailer, which is where all the valuable freight is,” explains Stephen Petit of SiefkesPetit Communications, which represents Carrier Transicold.

“So, having telematics on the TRU is a benefit in terms of cluing you into what’s happening where the freight is as opposed to just tracking the tractor or the driver and their mobile device,” Petit says.

Idaho-based Roamer Transport Inc., which hauls fresh and frozen food, adopted Carrier Transicold’s Lynx Fleet telematics across its 39-trailer fleet before the recent update. The company credits even the older features and data it receives through the platform with helping keep its trailer use close to constant and saving at least four loads due to early alerts of technical issues.

(Photo courtesy of Carrier Transicold)

Data: Whose Is It and What To Do With It?

As more and more data is being generated, there are more opportunities for questions about data ownership and handling. Blair says the Lynx Fleet telematics team has had discussions with its customer base about concerns such as how long data gets held and who gets to see it.

“We take every single one of those inquiries and those desires very seriously, and we accommodate everything that’s humanly possible to alleviate those,” he says. “Our stance is: If you own that trailer, you own the data that goes with that asset. If you have a policy for how you want that data handled, we will abide by that.”

Petit says having the data to offer to potential customers is beneficial for trucking companies.

“Even a small food distributor can have requirements when it comes to data and being able to verify things like time in and time out or detention time or waiting times and certainly temperature — there are all kinds of compliance issues,” he says. “Having telematics today that go beyond location and temperature and are able to get down to more of a remote monitoring and control setup and sharing that data as you wish with your customers — those
are pretty important advantages for a carrier today.”

Blair says the main point behind Carrier Transicold having Lynx Fleet and putting out the recent update is “really about serving our customers and allowing them to make critical business decisions with the best data available.”

“We live in this world now where there are answers in the data that come from these assets to questions that we haven’t even thought to ask yet,” he continues. “That’s the purpose: How do we help you? How do we give you actionable information? We designed and built those TRUs, so we’re best suited to give you those answers.”

Hawaiian papayas get the bespoke shipping treatment

Tue, 27 May 2025 18:25:02 GMT

Papayas are a delicate fruit, according to Eric Weinert, president of the Hawaii Papaya Industry Association and owner of Hawaii Papaya Direct. But they are also unusual, especially the fruit from Hawaii.

“Most of the papaya in Hawaii is grown in the District of Puna on the Big Island, which is volcanically very new,” Weinert says. “The richness and nutrients of that new volcanic soil gives Hawaii’s papaya a unique and really good taste.”

Weinert says Hawaiian papayas are usually either the solo or rainbow varieties; smaller orange-fleshed fruits compared to the red-fleshed papaya of South America.

“Papaya is unique in that it fruits year-round,” he continues. “They have a couple of peaks and valleys, but there’s always fruit all year round in Hawaii. That makes it good from a marketing point of view so people can always have it in the stores.”

Getting Hawaiian papayas to stores outside of Hawaii is an undertaking. It is roughly 2,400 miles to reach the nearest mainland port in Southern California. Weinert explains that usually Hawaiian papayas are shipped by boat to ports along the West Coast and then trucked deeper inland. Papayas that consumers find in stores on the East Coast or the eastern half of the country are likely from South America.

To add to the complication, if temperatures fall below about 55 degrees, unripe papaya — those that haven’t started showing some yellow — won’t ripen properly. When each fruit bears the cost of transport to its customer, having an unsuccessful eating experience in the form of a fruit that won’t ripen is a problem, Weinert says.

Direct from source to consumer

Since most large retailers want unripe papayas — thinking that will give them the most amount of time to sell them — Hawaiian papaya growers and shippers often have a lot of almost-ripe and ripe fruit that is too ripe to ship by boat. Weinert says many of the papaya companies were throwing away these ripe fruits. That presented an opportunity.

Enter Hawaii Papaya Direct, a bespoke direct-to-consumer online venture.

“We FedEx these things two-day air, and we start with the ripe fruit. We never refrigerate them. We get them out of the field, pack them and ship them to a person, and they will end up with ripe fruit,” Weinert explains. “That online business has grown 50% year over year for the past three years.”

He says that he has shipped directly to consumers in every state, including the Big Island of Hawaii. Weinert says a lot of the business is people who give the five-fruit boxes as gifts. But there’s something interesting about the people who buy them, he notes.

“Almost everyone of those people — when they call and we talked to them — have a relationship with Hawaii in one way or another,” Weinert says. “There’s some kind of magical relationship with Hawaii.”

The business is individualized to the wants and needs of the customers. Weinert says he talks with customers regularly, and Hawaii Papaya Direct will pack to a customer’s specifications on ripeness to the extent possible. It doesn’t always work out, however, given the logistics challenges.

“Not every shipment is good. We put good fruit in a box, but once it leaves us, things can happen because it’s alive,” he says. “But our deal is we are committed to happy customers, so we make it right regardless of the cost. We want a happy customer.”

Fresh produce timelines drive U.S. trucking trends

Wed, 14 May 2025 18:00:51 GMT

Fresh produce is a demanding, volatile and highly seasonal industry, and its timelines can have massive effects on other industries.

“Produce season is one of those events that impacts the entire freight market,” Dean Croke, principal analyst for DAT iQ, told The Packer.

DAT Freight & Analytics, which operates the DAT One freight marketplace and DAT iQ data analytics service, released its monthly recap report on the trucking markets May 9. It showed truckload freight volumes down month-to-month in April:

Van DAT Truckload Volume Index: — 287, down 0.3%.
Refrigerated (reefer) TVI — 222, down 3.1%.
Flatbed TVI — 332, up 2.5%.

Year-over-year volume comparisons, on the other hand, were positive, with the Van TVI up 1%, Reefer TVI up 4% and Flatbed TVI up 5% compared to April 2024.

“We had a good season last year, and a slow start this year,” said Croke. That slow start in the shipping season was due, in large part, to the slow start in the big players in U.S. produce like California. Croke explained that the produce season for the trucking world generally kicks off in mid-April as crops in low-latitude states come ready.

“There are very few events that move the national rate needle as much as produce season,” he said. “When you get to this part of May, you normally start to get into serious produce volumes as temperatures warm and it starts to push more volume into the spot market.”

But things are different this year. Croke said the season is about four weeks behind where it usually is with “not a lot of produce moving nationally.”

“The year-over-year comps really reflect a slow start out of California, which produces anywhere between a third and a half of our truckload produce volumes each year in the spot market,” he said. “Some markets are hot, but the overall market is still fairly flat and is maybe down compared to last year because of some weather-related factors and, I expect, a little bit of consumer demand has been softening.”

What shipping season 2025 looks like

The monthly DAT report also noted that there was little movement in national average spot van and reefer truckload rates. Since most produce is moved on the spot market, especially in vans and reefers, spot market rates in those areas are the most relevant to produce. Those rates and the month-to-month changes for April were:

Spot Van — $1.96 per mile, down 3 cents from March.
Spot Reefer — $2.27 per mile, unchanged.
Spot Flatbed — $2.57 per mile, up 4 cents.

The relatively flat rates in vans and reefers were called typical for March and April. The flatbed rate increased for the fifth straight month.

Croke explained that, historically, spot rates steadily ramp up from the middle of April to July 4, the seasonal peak, all because of produce shipping. Spot rate tends to gain 20-25 cents per mile over that time for reefers.

“The produce season — in this short two-and-a-half months — lifts the entire freight market out of the winter doldrums from spring and into Independence Day,” he said.

What this year’s spot rate peak will look like is in question, however.

“Because of the late start in produce season and softer consumer demand because we’ve all been worried about a trade war and a recession, we’re not sure that this season will deliver the same peak in spot rates that we’ve always seen,” Croke said.

Ken Adamo, chief of analytics at DAT Freight & Analytics, said in DAT’s April report that the shipping market felt frozen due in large part to these wider economic concerns.

“April brought the usual seasonal opportunities in produce and construction materials,” he said. “But broader economic factors — including uncertainty over tariffs and the pull-forward of inventory this year — put a damper on growth in overall freight volumes, especially compared to previous years.”

The report also noted that, while the month-to-month spot rates were mixed, the contract truckload rates in April were flat to higher across the different categories. The report pointed out that, when spot rates fall relative to contract rates, “it can signal a soft or oversupplied market.”

“Carriers were hoping April rates would be a springboard into a stronger Q2,” Adamo said. “Instead, the optimistic case is that they’ve reached a pricing floor heading into the traditional summer peak shipping season in May and June. How ‘traditional’ the season looks has yet to be determined.”

Dean summarized the potential peak saying, “It may be a speed bump.”

“There will be a produce season, I just don’t think it’s going to be what we normally see because of the impact of what’s happened in the first half of this year.”

Mexico Will Send More Water to Texas to Make Up Treaty Shortfall, USDA Says

Tue, 29 Apr 2025 13:11:02 GMT

U.S. Agriculture Secretary Brooke Rollins said on Monday that Mexico would increase its water shipments to Texas to help make up a shortfall under a 1944 treaty that outlines water-sharing between the countries.

U.S. officials and lawmakers have complained that Mexico’s failure to meet its obligations under the treaty is harming Texas farmers.

Mexico has argued that it is under drought conditions that have strained the country’s water resources.

“After weeks of negotiations with Mexican cabinet officials alongside the Deputy Secretary of State Christopher Landau, we secured an agreement to give Texas producers the water they need to thrive. While this is a significant step forward, we welcome Mexico’s continued cooperation to support the future of American agriculture,” Rollins said in a statement.

🚨In President Trump’s first 100 days, we have secured an agreement with Mexico alongside @DeputySecState for an immediate transfer of water from international reservoirs to Texas farmers.

This will meet the immediate needs of American farmers and ranchers, and sets the stage…
— Secretary Brooke Rollins (@SecRollins) April 28, 2025

Earlier this month, Reuters reported that the water issue had emerged as a possible new front in trade negotiations between the two countries.

The water treaty requires Mexico to send 1.75 million acre-feet of water to the U.S. from the Rio Grande every five years.

Mexico will now “transfer water from international reservoirs and increase the U.S. share of the flow in six of Mexico’s Rio Grande tributaries through the end of the current five-year water cycle,” which ends in October, said a USDA statement.

My gratitude to President Trump and Secretary Rollins. They have delivered as promised for our farmers. Mexico will meet its treaty obligations and provide south Texas water as required.
— Sid Miller (@MillerForTexas) April 29, 2025

State Department spokesperson Tammy Bruce in a statement thanked Mexican President Claudia Sheinbaum “for her personal involvement in facilitating cooperation across multiple levels of her government to establish a unified path to addressing this ongoing priority.”

Mexico’s government released its own statement later on Monday saying it would implement “a series of measures aimed at mitigating potential shortfalls in water deliveries” including immediate water transfers as well as during the upcoming rainy season.

“All of these actions have as their fundamental premise the assurance of water supplies for human consumption for the Mexican populations that depend on the waters of the Rio Grande,” the statement said.

Your Next Read:
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Can Mexico Afford to Retaliate Against the U.S.?

Progressive Produce shares cold storage know-how

Thu, 24 Apr 2025 13:18:59 GMT

Since Progressive Produce LLC established itself as a Los Angeles-based grower-packer-shipper in 1967, the company has honed its expertise in the cold storage arena, dealing with products ranging from potatoes and onions to asparagus and chili peppers and myriad other fruits and vegetables.

When the firm acquired a 120,000-square-foot cold storage facility in nearby La Mirada about eight years ago, it decided to open it up to third parties, said Oscar Guzman, vice president of marketing and sales.

“We talked with multiple growers, packinghouses and small, local supermarkets and saw that there was a need in this area for efficient cold storage,” he said.

“We’d been in business for over 50 years, so we definitely knew what it took to receive shipments and keep the cold chain going,” he added. “We’d been doing it for ourselves for so long that we finally got to the point where we were very comfortable offering that service to others.”

The move meant the company, which was used to dealing with dozens of assorted fruits and vegetables of its own, had to expand its expertise to include different items its customers offered, such as melons and pineapples.

The facility has many amenities that anyone in need of a cold storage facility should be on the lookout for, Guzman said, including:

Three temperature zones, including an ambient temperature area to accommodate a wide range of fruits and vegetables.
Comprehensive remote monitoring for temperature.
A digital check-in system that allows products to be tracked for food safety purposes.
Daily inspections.
A state-of-the-art warehouse management system.
Constant rotation to ensure riper fruits and vegetables are shipped before the newest ones.
Eight loading doors to enable trucks to load and unload quickly.

The company complies with the latest food safety rules and traceability requirements, Guzman said.

“Food safety has become especially important lately, and we are transparent about everything we do,” he said. “We like to have all our T’s crossed and I’s dotted.”

Changes have been implemented over the years to keep up with current industry standards, but one thing that hasn’t changed is the customer service, Guzman said. Staff is always ready and willing to advise third parties on good cold storage practices, he said, though most already are well-versed on what their needs are.

Transportation is an important part of maintaining the cold chain, and Progressive’s Pathfinder Logistics company enables customers to keep the cold chain intact before and after their product arrives at the cold storage facility, Guzman said.

Refrigerated big rigs can pick up a load, consolidate a load, add something to it or just take it to or from the facility, he said. All trucks are equipped with temperature controls that can be monitored remotely, a feature he said is a must for today’s trucking operations.

Another item on a checklist for anyone seeking a dependable cold storage operation should be organic capabilities, Guzman said.

“We are an organic house as well,” he said, referencing the company’s certification through California Certified Organic Farmers.

Quebec wholesaler moves to iceless broccoli shipments

Wed, 02 Apr 2025 18:55:22 GMT

Gaétan Bono Fruits et Légumes, a wholesaler of fresh produce in Eastern Canada, recently announced a partnership with Verdant Technologies to introduce its HarvestHold Fresh product into fresh broccoli shipments.

Samuel Fasulo, senior produce and sales buyer for Gaétan Bono Fruits et Légumes, said the company began to engage with Verdant Technologies following conversations with retailers about new initiatives or innovations and Fasulo said HarvestHold came to mind.

“They had just an open discussion about new initiatives that the chain stores are looking into to try to eliminate ice and water damage in their facilities,” he said.

Also of keen interest, Fasulo said, was eliminating slips and calls and damage to the company’s epoxy floors from water.

Fasulo said Francis Carruthers, food safety director at Gaétan Bono Fruits et Légumes, worked with Verdant Technologies to understand which growers already used HarvestHold, and he said the team at Gaétan Bono Fruits et Légumes was pleased to learn that a large grower partner already worked with Verdant Technologies.

Gaétan Bono Fruits et Légumes did trial HarvestHold Fresh against the traditional method of shipping with ice, but Fasulo said workers don’t necessarily want handle 50-pound boxes of broccoli and ice. Then there are security issues with water safety and integrity.

“Our industry is getting a little bit more delicate with what’s in the water, what’s in the ice,” he said. “We’re [also] finding it harder to get people to want to work and pick up a 25- or 50-pound box. It’s tough to get just employees wanting to do that manual labor today. You know? The other thing is security; ... [T] he list was on and on and on.”

Fasulo said the additional benefits include less freight, especially when shipping from California to Canada and more boxes per truckload. He said receivers handling the product also enjoy the benefit of not handling melting ice and any damage that water might present or risks of falls from staff. He said retailers that work Gaétan Bono Fruits et Légumes also had positive feedback.

“We did see a good initial interest from our customer base, at a retail standpoint,” he said, noting independent retailers are more accustomed to the traditional broccoli shipped on ice. “I think the more that we grow in carrying this product, ... there will be more of a trust factor. Knowing that everybody’s got it. Everybody trusts it. If all the chain stores, all the big wholesalers have it, then this product should be working.”

Matthew Aronson, chief revenue officer at Verdant Technologies, said the partnership with Gaétan Bono Fruits et Légumes is part of a broader expansion of Verdant Technologies in Canada, including a partnership with Sobeys last year, and that awareness of HarvestHold is starting to take off in the country. He said it’s been a natural progression from retailer to grower-partners to wholesale.

“From some of that initial adoption on the retail side, as that has continued to grow, and the grower base comes along with that, and then that natural next domino is the wholesale part of the market as wholesalers serve those retailers,” he said.

Aronson said as Verdant Technologies continues to add partners in Canada, the company seeks to expand HarvestHold use in the U.S.

“That’s where we see a lot of opportunity,” he said. “We have some great partners that have used and experienced the benefits of our product. I think the U.S. presents its own kind of unique challenges and opportunities with, in many cases, a lot of the same growers involved. There’s a lot of good overlap there, but how the product is sourced? You’ve got a much more fragmented retail environment in the U.S. compared to the more consolidated market in Canada.”

Podcast: New innovations in produce shipping

Thu, 20 Mar 2025 19:23:05 GMT

Imagine you’re shipping a 40-pound box of broccoli, of which, 20 pounds of it is ice and another 20 pounds of it is the broccoli itself. Wouldn’t it be more efficient if you were able to ship more broccoli and reduce the ice?

That’s exactly what Verdant Technologies is hoping to solve with its HarvestHold product, a 1-methylcyclopropene-based postharvest solution that extends the usable product life of fruits, vegetables and flowers by an average of 40-50%. HarvestHold is

Matthew Aronson, chief revenue officer of Verdant Technologies, joined the “Tip of the Iceberg” podcast to discuss the move away from ice in shipping fresh produce and the residual effects it can have.

Aronson said that HarvestHold’s use extends far beyond fresh broccoli into other fresh produce, and floral, commodities.

One thing he said many broccoli growers and shippers will see is freight savings. When a 40-pound box of broccoli is filled with 40 pounds of broccoli and not just half, it cuts down on the number of boxes and also reduces the weight.

“You’re paying to ship water and ice thousands of miles,” he said. “If you go from a full truckload with ice and broccoli — about, 1,000 cases — you take that ice out, you can now fill up that truck, so you go from about 1,000 cases to 1,500, and you pick up another 400 or 500 cases in the same truck that you’re paying for.”

Aronson said Verdant Technologies’ HarvestHold is an easy product to apply in the field as workers harvest the crop, which means workers also don’t have to handle ice when harvesting.

“It just really integrates very seamlessly with their operation,” he said.

Aronson said there’s a great sustainability story, too, with reduced carbon footprint and water use.

There’s also the added benefit of eliminating a potential contaminant as the ice melts and the potential for slips and falls, which is a major selling point for retailers.

“The average payout for a slip falls instant in the U.S. is about $50K,” he said. “When you zoom out a little bit, 60% of all grocery retail claims are from slips and falls. And what does that mean from a dollar standpoint? On an annual basis retailers are spending upward of $450 million a year to defend slips and falls.”

Truck rates up slightly in the past year

Tue, 06 Aug 2024 15:07:18 GMT

Average spot rates for refrigerated trucks are up slightly compared with year-ago levels, according to data collected by the USDA.

The USDA reported that the average price for refrigerated trucks was $3.79 per mile on July 23, up 5% from $3.60 per mile on July 25 a year ago.

The U.S. average price per gallon of diesel was $3.79 on July 22, down 12.6 cents compared with a year ago.

Average per mile refrigerated truck rates over the past year:

July 4, 2023 — $3.59.
Aug. 1, 2023 — $3.57.
Sept. 5, 2023 — $3.69.
Oct. 3, 2023 — $3.41.
Nov. 7, 2023 — $3.33.
Dec. 5, 2023 — $3.21.
Jan. 2, 2024 — $3.44.
Feb. 6, 2024 — $3.48.
March 5, 2024 — $3.39.
April 2, 2024 — $3.37.
May 5, 2024 — $3.57.
June 4, 2024 — $3.48.
July 2, 2024 — $3.64.
July 23, 2024 — $3.79.

Source: USDA

DAT: Truckload freight volumes slipped in June after a robust May

Mon, 05 Aug 2024 14:57:32 GMT

Beaverton, Ore.-based DAT Freight & Analytics has reported spot truckload rates rose in June despite declines in the number of loads moved.

The DAT Truckload Volume Index, an indicator of loads moved during a given month, retreated from all-time highs for van and refrigerated, or reefer, loads in May:

Van TVI — 266, down 9% month over month.
Reefer TVI — 199, down 11%.
Flatbed TVI — 279, down 7%

Year over year, the van and flatbed TVI dipped 3% and 5%, respectively. The reefer TVI was up 7% compared to June 2023.

“The month ended strong for dry van freight, with nearly 25% more volume moving during the final week of June compared to last year,” Ken Adamo, DAT chief of analytics, said in a news release. “While demand for trucking services entered July on a high note, we expect freight activity to ease during the summer. This remains a challenging market for freight carriers and brokers.”

Despite the volume decline in June, DAT reported spot rates rose for all three equipment types. The spot van rate was $2.07 per mile, up 6 cents from May. Spot reefer rates were $2.45 per mile in June, up 4 cents from May. Spot flatbed rates were $2.53 per mile in June, up 1 cent from May.

The average van line-haul rate was $1.64 a mile, up 6 cents compared to May, while DAT said the reefer rate gained 5 cents to $1.99, and the flatbed rate increased 1 cent to $2.02. Line-haul rates subtract an amount equal to an average fuel surcharge.

National average rates for contracted van and reefer freight ticked higher in June, with contract reefer rates pegged at $2.81 per mile, up 2 cents from May.

National average van and reefer load-to-truck ratios increased for the fourth straight month in June, reflecting a combination of higher demand and fewer trucks in the marketplace, according to DAT.

John Greene Logistics invests in technology

Fri, 02 Aug 2024 19:16:03 GMT

John Greene Logistics & Greene Transport Cos. is investing in advanced GPS tracking and real-time temperature monitoring systems for its refrigerated fleet, says Michael Fernandes, director of sales.

Fernandes said the investment will pay dividends for the Titusville, Fla.-based company.

“This integration enhances our ability to provide precise delivery times and ensures that our customers can track their shipments in real-time, guaranteeing peace of mind and improved supply chain transparency,” Fernandes said.

For over 62 years, John Greene Logistics Co. and its trucking division, Greene Transport Co., have provided refrigerated transportation via team and single drivers within Canada and the U.S., he said.

“Our advanced refrigeration technology ensures the produce remains fresh throughout the journey, maintaining optimal temperatures and reducing spoilage risks,” he said. “Our team is trained in handling perishable goods, ensuring they reach their destination in the best possible condition.”

Looking ahead, Fernandes said the next six months should be an interesting period and could be a turning point in the transportation sector depending on consumer demands and needs.

“We anticipate fluctuations in the market, with certain states experiencing increased shipping volumes and a potential hike in rates due to heightened demand,” he said. “Conversely, other regions may see a decrease in shipping volumes, affecting overall market dynamics. Currently, the market favors shippers, but as capacity and demand balance out, we expect a gradual increase in rates. Our focus will remain on adapting to these changes to ensure consistent and reliable service for our customers.”

Year in Produce 2023: Freight rates ease, but conditions expected to tighten in 2024

Wed, 27 Dec 2023 17:54:43 GMT

Editor’s note: The following is one of the issues highlighted in The Packer’s Year in Produce 2023 review .

Freight costs for produce shippers declined during 2023, but the rate dip may be setting up a return to firmer pricing in 2024, some experts say.

In coverage Aug. 7, The Packer reported a substantial drop in truck rates compared with 2022.

The story noted that freight costs in January 2022 for a load of refrigerated produce out of California to the East Coast averaged $5.19 per mile, according to the USDA. By late July, the rate declined to $3.55.

The industry’s transportation woes started in 2020 when the pandemic shut down driver training schools, resulting in a shortage of truck drivers, Dean Croke, principal industry analyst at DAT Freight & Analytics, with headquarters in Beaverton, Ore., and Denver, said in August.

But when Paycheck Protection Program loans ended July 2020, Croke said there was a rush to join the trucking industry from people who had never been in the industry or who had been driving for a larger fleet and bought their own trucks because rates were so high.

At the same time, during the second half of 2020, diesel prices dropped to $2.40 a gallon, and spot rates for freight increased about $1 per mile — from $1.30 to $2.30, Croke said.

“The diversion of those two data points away from each other was really what started the whole ball rolling,” Croke said in August.

After PPP loans ended, about 100,000 carriers joined the ranks of the trucking industry over a 12-month period.

Croke said then that low rates of 2023 are bound to face upward pressure again.

“We’re in the bottoming-out part of the market,” he said in August

Dip in the road

USDA truck rate data revealed that the average per mile cost for refrigerated trucks dropped from $3.88 per mile in early January to $3.69 per mile by July 4 and to just $3.21 per mile by Dec. 5.

Truck rate cycles follow a familiar pattern, according to the DAT Freight & Analytics 2024 Freight Focus report.

“When truckload capacity tightens, rates rise. When rates rise, new carriers enter the marketplace and large fleets add trucks,” according to the report.

“As truckload capacity increases and demand softens, rates fall,” the report said. “When rates fall, carriers leave the marketplace and capacity once again tightens. At the moment, we’re in that final phase, waiting for the other shoe to drop.”

A mid-December survey of industry professionals in the LinkedIn Fresh Produce Industry Discussion Group indicated that most who responded to the poll expects rates to rise in 2024.

Asked in mid-December to respond to this statement, “Refrigerated truck rates for produce in 2024 will be …”

With about 80 votes casts, the results on Dec. 18 were:

About the same rates as 2023 — 27%.
Higher rates than 2023 — 48%.
Lower rates than 2023 — 25%.

Looking ahead

DAT’s 2024 Freight Rate Focus report said the pandemic-fueled disruptions of 2020 and 2021 stretched routing guides beyond their threshold and pushed truckload rates to record highs. The high rates attracted a record number of new carriers, with the number of for-hire interstate carriers nearly doubling.

While truck rates are bound to rebound to some degree, the DAT report said it may not be until mid-2024.

“The truckload market cycle is bottoming out as carriers continue to exit the industry,” the report said. “However, without any significant change in truckload demand expected before the second quarter of 2024, the market may remain in its current state for quite some time – likely until at least midway through 2024.”

Other shocks to the global supply chain, including war, could change pricing quickly, the DAT report said.

DAT’s prediction, the report said, is that current market conditions will continue until late Q2 when the market should finally find equilibrium.

“The truckload market should revert with spot rates rising over contract rates sometime in the first half of the year, and demand will normalize as the supply chain disruptions that began during the pandemic work their way out of the system,” the report said.

Average U.S. refrigerated truck rates (per mile)

Jan. 3 — $3.88.
Feb. 7 — $3.72.
March 7 — $3.48.
April 4 — $3.43.
May 2 — $3.37.
June 6 — $3.58.
July 4 — $3.59.
Aug. 1 — $3.57.
Sept. 5 — $3.69.
Oct. 3 — $3.41.
Nov. 7 — $3.33.
Dec. 5 — $3.21.

(Source: USDA)

Freight network launches service for same- and next-day direct store delivery

Tue, 07 Mar 2023 21:25:19 GMT

Los Angeles-based WARP , a tech-powered freight network specializing in middle-mile solutions, has launched DirectFresh, a service enabling perishable shippers with same-day and next-day direct store delivery.

Founded in 2021 by entrepreneurs Daniel Sokolovsky and Troy Lester, WARP has a truck fleet that offer customers vehicle options for every load based on speed, price and service preferences, the company said.

The new DirectFresh service offers shippers an end-to-end solution for their fresh freight, including manufacturer to cold storage transfers and high-touch, in-store deliveries, according to a news release.

WARP’s DirectFresh service enables shippers to transfer product from cold storage directly to a store or a WARP Station (cross dock), depending on their inventory needs, within the same day without needing to work with a last-mile delivery service, the release said.

“A majority of freight providers don’t have the right technology to provide quality service to the sensitive temperature-controlled freight market,” Jake McPaul, head of refrigerated operations and product at WARP, said in the release. “The sensitivities associated with perishable shipping also almost always leave perishable shippers little to no consolidation solutions, making it challenging to manage costs. With technology that connects temperature-controlled cross docks and carriers, we’re bringing new and innovative solutions for perishable shippers across North America.”

As part of its new DirectFresh offering, WARP has partnered with ShipRec to provide real-time temperature monitoring of fresh freight in transit directly in the WARP platform, the release said. The partnership between WARP and ShipRec improves food safety and works to meet the strict requirements of FSMA regulations to prevent foodborne illness, the release said.

Users can receive notifications if a refrigerated or frozen product’s temperature is outside of the optimal temperature zone, allowing drivers to investigate issues as needed and alert customers of any issues in advance, the release said. ShipRec’s tracking technology also applies to more than just fresh freight, giving WARP customers accurate, geographic locations for all their loads.

“We’re thrilled to partner with WARP to provide their customers with cutting-edge technology that will allow them to have better insight and control into their shipments,” Paul Vinuelas, ShipRec CEO and co-founder, said in the release. “ShipRec’s tracker signal is strong enough to go through cardboard, metal and even concrete, making it applicable to fresh shipments and everything in between.”

WARP provides more transparency at a lower cost by right-sizing capacity based on the pallet-level/piece count of shipments that day, time and place, the release said. WARP has partnerships with carriers that offer in-store delivery including unloading the trucks and delivering the final product inside the store, the release said. The service is now available in every major metro area in the U.S., Canada and select areas of Mexico, benefiting a range of perishable shippers such as fast casual restaurant chains, coffee shops, convenience stores, grocery stores, florists, ice cream shops and more, the release said.

The news comes on the heels of WARP’s recent announcement of an additional $5.7 million in funding to bring its total to $8.1 million for its first operational year in 2022, the release said.

DAT: June contract truck rates at the lowest level in nearly two years

Tue, 18 Jul 2023 14:50:36 GMT

While truckload freight volumes and spot rates held firm in June, contract rates fell to their lowest points in almost two years.

Those were two conclusions from the latest market review by DAT Freight & Analytics .

“The gap between spot and contract rates was the narrowest since April 2022,” Ken Adamo, DAT chief of analytics, said in a news release. “Spot rates for van and refrigerated freight increased for the third straight month, and volumes were almost unchanged from May. These are signs that spot truckload prices have reached the bottom of the current freight cycle.”

The national benchmark contract rate for dry van freight has not increased for 12 consecutive months. At $2.58 per mile, the rate was 70 cents lower than a year ago, according to DAT.

The DAT Truckload Volume Index (TVI), an indicator of loads moved during a given month, decreased marginally for van and refrigerated (“reefer”) freight and increased slightly for flatbed loads, DAT said in the release.

On the spot market, the national benchmark rates for van and reefer freight rose while the flatbed rate declined compared to May, the release said.

Related: What’s down the road for transportation costs?

The spot reefer rate in June was $2.47 per mile, up 3 cents from May, according to DAT.

Lower diesel prices in June pushed fuel surcharges to 17-month lows, averaging 43 cents a mile for van freight, 46 cents for reefers, and 51 cents for flatbeds.

The national average van load-to-truck ratio was 2.6, meaning there were 2.6 loads for every van posted to the DAT One marketplace last month. The ratio was 2.5 in May and 3.9 in June 2022.

The reefer ratio averaged 3.8, up from 3.6 in May but down from 7 in June 2022, according to DAT.

“Demand for truckload services typically slows at this time of year, but this could change quickly given the threat of strikes in the parcel and less-than-truckload sectors,” Adamo said in the release. “Shippers are putting contingency plans in place and would look to freight brokers and carriers on the spot market to keep their line haul operations moving. Demand for trucks would jump, especially around Louisville, [Ky.,] Memphis, [Tenn.,] Indianapolis, Dallas and other major parcel hubs.”

How ports are growing to fit an expanded role

Fri, 09 Feb 2024 21:46:53 GMT

America’s seaports play a vital role in transporting fresh fruits and vegetables to and from the U.S. Major ports continue to build their import and export volume while launching projects to improve their infrastructure and enhance their operations.

Here’s a look at what’s going on at some of those facilities.

Hueneme

The Port of Hueneme, located between Los Angeles and San Francisco, is known as “The Port that Farmers Built,” said Garrett Raborg, marketing and communications specialist.

The port provides California’s central coast agricultural industry with an ocean link to the global market, he said.

“The Port of Hueneme is the West Coast leader for banana imports with over 600,000 tons on over 156 vessels annually,” Raborg said.

“Port customers import more than 30 million boxes of bananas annually equaling 5 billion bananas, with market value of $885 million,” he added.

The port ranked second nationally for banana imports by tonnage and third by value.

Fresh fruit import trade volumes grew 3% at the port during 2023.

“This is an essential commodity sector for the port, and it is growing due to persistent demand for produce as well as dry container cargo,” Raborg said.

Revenues for agriculture products in 2023 reached $9.4 million.

The port also receives fresh produce such as bananas, pineapples, blueberries, avocados and more from Mexico, Guatemala, Peru, Costa Rica and Ecuador. The facility handles break bulk and containerized fresh produce through refrigerated ocean carriers.

Apples, pears and potatoes are the greatest exports from Hueneme, Raborg said.

“The port processes containerized chilled and frozen cargoes through dedicated on-dock yards, including 93,000 square feet of on-dock refrigerated transit building space,” he said.

Additional space is available nearby at a more than 1 million-square-foot temperature-controlled facility offering transload operations for Chiquita, Del Monte, Anacapa Fresh, Channel Islands Cold Storage, Mission Produce, Seabord, Del Norte Distribution and Lineage Logistics.

Oakland

The Port of Oakland serves as a premier gateway for U.S. food products, including fruit, nuts and vegetables exported to markets in Asia and throughout the world, said David DeWitt, media and public relations specialist for the port.

During 2023, the port exported 114,990 20-foot containers of edible fruit, nuts and similar items valued at more than $5 billion, he said. A 25-acre Cool Port Oakland cold storage and logistics facility, which opened November 2018, serves as a hub for temperature-controlled cargo transitioning through Northern California.

DeWitt cited three current projects that have been funded to further enhance the port:

The Arterial Roadway Improvements Project intended to reduce congestion, improve safety and increase access across critical arterial routes serving the port.
The Terminal Modernization Project designed to accommodate ultra-large container vessels capable of handling up to 24,000 shipping containers at all its deep-water berths.
The Port of Oakland Outer Harbor Terminal Redevelopment Project intended to sustain the port’s future growth potential and operational efficiencies, support rural farming communities, and maintain and expand the global competitiveness of the port.

Los Angeles

The Port of Los Angeles handled 383,000 metric tons of fruit and vegetables in 2022 — 175,000 metric tons in imports and 108,000 in exports — said Marcel Van Dijk, cargo marketing manager.

The majority of the imports are citrus, berries, bananas, melons and asparagus, he said. Export commodities are citrus, grapes, carrots and onions.

Perishables arrive from Central America, Chile, Southeast Asia and the Philippines. Export destinations are Japan, Korea, China, Central and South America.

The Port of Los Angeles and Long Beach has six major cold storage facilities with 116,500 pallet positions 3 miles to 8 miles from the port to handle perishable cargo.

There are many more cold storage facilities in the Los Angeles area, and perishable cargo is also stored in facilities in the Central Valley, Dijk said.

The Port of Los Angeles has a dedicated fruit terminal for palletized cargo from reefer vessels.

The stevedore, Stevedoring Services of America, is in the process of changing over liquefied natural gas forklifts to 100% electric forklifts, he said. This should create a fully sustainable terminal, without any internal combustion engines in any of the yard equipment, by 2025.

Northwest

The Northwest Seaport Alliance, which includes the ports of Seattle and Tacoma, Wash., is the largest gateway port complex in the U.S. for containerized seaborne exports of apples, said Steve Balaski, business development director for the alliance.

“Agriculture in general is a major part of the volume that goes through our terminals,” he said.

Washington is a major producer of apples, blueberries, cherries and grapes, he said. One-third of the state’s apples are exported via ship to places like India and Asia.

The alliance recently received a Port Infrastructure Development Program grant of more than $50 million to help expand a Tacoma terminal and add capacity to handle refrigerated containers.

“We support the development of temperature-controlled cold-storage facilities,” Balaski said. “We’re seeing a very strong demand for cold-storage capacity.”

The ports play an important role in agriculture transportation, he said.

“The ocean transportation industry with refrigeration and ports is what allows our Washington state producers to reach global markets,” Balaski said. “Exports are really where the growth is.”

FDA, border patrol partner to improve supply chain traceability

Fri, 29 Mar 2024 19:23:43 GMT

Customs and Border Protection has partnered with the Food and Drug Administration to expand the focus of the Global Business Identifier test.

The expanded test will explore how the FDA and CPB can use identifiers, numbers that capture information on business entities, to address supply chain traceability, according to a news release.

“This could enhance predictability, lower costs and create the opportunity for additional facilitation benefits for compliant trade,” Troy Miller, senior official performing the duties of the Commissioner, said in the release release.

CPB said it will also assess the functionality and effectiveness of identifiers to address data gaps in its Manufacturing/Shipper Identifier requirement.

“Traceability is key to the FDA’s mission,” Dan Solis, FDA assistant commissioner for import operations, said in the release. “It enables us to leverage verifiable information at the supply chain level to identify risk and make admissibility decisions — ensuring the food, medicine and other FDA-regulated goods entering the United States are safe and get to those who need them as quickly as possible.”

CPB said it plans to modify the Global Business Identifier test, including extending it for three more years and removing commodity and country of origin limitations on the types of entries evaluated under the test.

DAT Truckload Volume Index sees April decline

Thu, 11 May 2023 17:55:43 GMT

Truckload freight volumes declined and national average spot rates for refrigerated loads fell for the fourth consecutive month in April, according to DAT Freight & Analytics.

The DAT Truckload Volume Index, a measure of loads moved during a given month, was lower for all three equipment types:

Van TVI was 206, down 15.5% from March and 12.3% lower year over year.
Reefer TVI fell to 154, a 16.3% decline from March and 12.5% lower year over year.
Flatbed TVI was 239, 13.7% lower compared to March but 3.5% higher year over year.

It’s not unusual for truckload freight volumes to decline from March to April, according to the DAT report.

The van and reefer TVI numbers were the lowest since February 2021, when a polar vortex and unprecedented winter storms disrupted logistics activity across large areas of the U.S. and Canada, the report said.

“May will be pivotal for shippers, brokers and carriers,” Ken Adamo, DAT’s chief of analytics, said in the release. “After a challenging first four months of the year, we expect to see the effects of seasonality on freight volumes and rates. The question is how sustainable those effects will be.”

National average load-to-truck ratios decreased, indicating weaker demand for truckload capacity on the spot market, the report said.

The last time van and reefer ratios were this low was in May and April 2020, respectively, during the supply chain shocks of the pandemic:

The van ratio was 1.9, down from 2.0 in March, and 3.4 in April 2022.
The reefer ratio was 2.7, down from 3.0 in March and 6.3 year over year.
The flatbed ratio was 12.1, down from 12.1 in March and 64.5 year over year.

Lower demand for truckload services led to a drop in national average spot van and reefer rates, the report said:

The spot van rate averaged $2.06 per mile, down 10 cents compared to March and 71 cents lower year over year.
The spot reefer rate fell 9 cents to $2.41 a mile, 72 cents lower than in April 2022.
The spot flatbed rate dipped 4 cents to $2.67 a mile, down 70 cents year over year.

Fuel surcharge amounts fell 2 cents to an average of 47 cents a mile for van freight, 52 cents for reefers and 57 cents for flatbeds, the report said. At $4.10 a gallon, the price of diesel was 11 cents lower compared to March.

DAT said the national average rates for contracted freight were lower compared to March, but the spread between contract and spot rates rose to near all-time highs: 62 cents for van freight, 60 cents reefers and 66 cents for flatbeds.

In the release, Adamo called the spread between spot and contract rates “an indicator of where we’re at in the freight cycle — the balance of bargaining power among shippers, brokers and carriers.” For the gap to close, two things need to happen, he said in the release.

“One, the supply of trucks on the spot market needs to diminish, which unfortunately means more carriers exiting the market,” he said. “Two, there needs to be higher demand for trucks — in other words, shippers with more loads than they planned for.”

In 2016 and 2019, it was the third week in May when the spot market entered a recovery phase after prolonged declines and stagnation, Adamo said in the release.

“Seasonality kicked in and shippers needed more trucks to move fresh produce, construction materials, imports and summer and back-to-school retail goods,” Adamo said. “If we see an uptick in demand before Memorial Day, it will be a welcome sign for owner-operators and small carriers as we head into the summer and fall.”

FWF makes the Inc. 5000 list for seventh year

Wed, 16 Aug 2023 18:37:08 GMT

The business magazine Inc. reports that Fifth Wheel Freight (FWF) ranks No. 2260 on its 2023 Inc. 5000 list of the fastest-growing private companies in the U.S.

FWF, a third-party logistics and transportation company headquartered in Grand Rapids, Mich., has maintained its growth as a fast-growing private company since 2017, increasing its ranking from last year’s spot (No. 2476) with three-year revenue growth of 244%, according to a news release.

“This award is a testament to our entire team,” FWF President Josh Brawley said in the release. “The hard work, tenacity and dedication that is needed to be on this list is one our team embodies every day. We are looking forward to continuing forming connections that move teammates upward, communities forward and impact onward.”

Award recipients represent companies that have driven rapid revenue growth while navigating inflationary pressure, the rising costs of capital and ongoing hiring challenges, the release said.

“Running a business has only gotten harder since the end of the pandemic,” Inc. Editor-in-Chief Scott Omelianuk said in the release. “To make the Inc. 5000 — with the fast growth that requires — is truly an accomplishment. Inc. is thrilled to honor the companies that are building our future.”

Dole boosts shipping capacity for tropical fruits

Tue, 09 Jan 2024 22:05:07 GMT

Dole Food Co. says it has added a new weekly vessel service for the Northeast to increase the capacity of tropical fresh fruits including bananas, pineapples, dragon fruit, mangoes and limes.

The route will import produce from Columbia, Honduras and Guatemala into Delaware’s Port of Wilmington, according to a news release.

Dole said the service will deploy two 1,200 FEU container vessels — MV Robin-2 and MV Robin-5 — in a 14-day rotation, with one of the vessels making weekly ports of call in Santa Marta, Colombia; Puerto Castilla, Honduras; and a new port of service in Puerto Barrios, Guatemala; before landing in Delaware each Saturday.

The additional vessels will help expand sourcing options, discharges and port rationalization and increase fuel efficiency from the slow-speed operation, the company said.

The new route will not impact current service offerings, according to the release.

Dole said its marine transportation service, Dole Ocean Cargo Express, will also use the vessels for its Mayan Express Service to expand ocean network coverage and an additional alternative to north Central America and the Port of Wilmington. Routes will run to and from Columbia, Honduras, Guatemala, El Salvador and the Northeast U.S.

“Dole is excited to expand our service level into the Northeast, bringing even more fresh tropical fruit to market,” Nelson Montoya, president of Dole Fresh Fruit North America, said in the release. “Both existing and future Dole customers can be equally excited at this growth in our service as we continue our journey to make the world a healthier place.”

Truck rates steady year over year but down from two years ago

Fri, 17 May 2024 17:11:55 GMT

Refrigerated truck rates are about steady with last year but lower than two years ago.

U.S. average refrigerated truck rates were pegged at $3.38 per mile on April 23, slightly higher than $3.32 per mile at the same last year but off 25% from $4.52 per mile at the same time two years ago.

The volume of produce shipments in April was reported lighter than last year and two years ago, according to USDA data.

The USDA reported that the volume of refrigerated produce shipments in the U.S. totaled 134,416 truckloads the week of April 9, compared with 154,870 truckloads the same week last year and 154,825 truckloads on April 19 in 2022.

The USDA-reported average refrigerated truck rates for the past two years were:

4/19/22: $4.52
5/17/22: $4.50
6/14/22: $4.50
7/12/22: $4.11
8/16/22: $4.04
9/13/22: $3.98
10/11/22: $3.89
11/15/22: $3.69
12/13/22: $3.74
1/17/23: $3.78
2/14/23: $3.65
3/14/23: $3.47
4/18/23: $3.46
5/16/23: $3.43
6/13/23: $3.61
7/18/23: $3.60
8/15/23: $3.59
9/12/23: $3.68
10/17/23: $3.32
11/14/23: $3.38
12/19/23: $3.35
1/16/24: $3.54
2/13/24: $3.46
3/19/24: $3.33
4/16/24: $3.36

Source: USDA

Lineage Logistics marks grand opening of Savannah Fresh-Port Wentworth facility

Thu, 20 Apr 2023 18:53:28 GMT

Lineage Logistics recently marked the grand opening of its newest facility in Port Wentworth, Ga.

Savannah Fresh-Port Wentworth is strategically located near the Port of Savannah, the largest single-terminal container facility of its kind in North America and the third-busiest container gateway in the U.S., according to a news release.

The 220,000-square-foot facility offers cross-docking services for products to enter and exit the facility on the same day if needed, reducing storage time, creating cost efficiencies and ensuring consumers receive fresh produce faster, the release said. It also has 23 inbound and outbound lanes that can process more than 40 trucks daily, moving up to 1.4 million pounds of produce per day.

“Today, the demand for port-centric temperature-controlled storage has never been greater and our Fresh solution offerings at Lineage have never been more robust,” Jim Henderson, vice president of global sales and business development at Lineage, said in the release. “Savannah Fresh-Port Wentworth will allow us to expand our Fresh offering to new and existing customers and also provides the needed capacity to improve market conditions. The opening of this new facility is a critical step for Lineage as we continuously work to reimagine the world’s food supply chain. We are honored to further our long-standing partnership with Georgia Ports Authority and look forward to building our presence in the state of Georgia, an essential hub for trade and innovation.”

For the past two years, Lineage has worked closely with the Savannah Economic Development Authority, Georgia Ports Authority and the city of Port Wentworth to construct the Savannah Fresh-Port Wentworth facility in addition to its port-adjacent facility on Tremont Road in Savannah, the release said. The Savannah Fresh-Port Wentworth project resulted in a $78 million investment alone that created 65 new jobs, bringing Lineage’s total economic investment in Chatham County to over $100 million. To date, Lineage’s footprint in Georgia spans over 3 million square feet.

Savannah Fresh-Port Wentworth was designed to address the overwhelming influx in imports of fresh produce to ports in the mid-Atlantic that lack the space to keep up with the demand, the release said. With proximity to the Port of Savannah, the new facility will enable Lineage to deliver larger quantities of fresh produce more efficiently to serve customers across the Southeast.

“With increasing demand for fresh produce capacity in Savannah, this new, state-of-the-art facility is a welcome addition,” Griff Lynch, executive director of the Georgia Ports Authority, said in the release. “Lineage Logistics’ suite of services, such as cold-retreatment and onsite [Customers and Border Protection] inspections, will save time, help prevent loss and, ultimately, bring fresh food to market faster.”

Warp launches suite of tracking tools

Thu, 20 Apr 2023 18:26:02 GMT

Los Angeles-based Warp has launched DirecTrack, a new suite of tracking tools that gives shippers high-level visibility of their freight at the truck, pallet and parcel level, including temperature monitoring, according to a news release.

WARP is bringing real-time location updates to the movement of goods throughout the shipment’s entire journey as part of its fully managed solution, the release said.

“With WARP you’re not just getting the transportation service and technology,” Daniel Sokolovsky, WARP co-founder and CEO, said in the release. “You’re also gaining access to our always-on team, the people making sure that everything runs smoothly behind the scenes. Unless you’re shipping your goods through Amazon, this level of customer service and visibility for the middle mile doesn’t exist. We are pioneering a new generation of transport tech that we want to be available to every shipper out there.”

The suite includes real-time temperature monitoring, cross dock tracking, a driver app, electronic logging device integrations and final mile API connections, the release said.

DAT: Truckload spot rates gained in May on strong reefer volumes

Tue, 25 Jun 2024 18:38:34 GMT

Spot truckload rates bounced higher in May, according to a new report from DAT Freight & Analytics.

Shippers sought capacity to move greater volumes of van and refrigerated freight, according to the report.

The van and reefer index numbers climbed 13% and 25% higher, respectively, compared to May 2023.

“Stronger van and reefer volumes are consistent with May, when shippers move seasonal produce and retail goods and truckload capacity tightens due to the Roadcheck inspection event and Memorial Day holiday,” Ken Adamo, DAT Chief of Analytics, said in a news release. “Carrier attrition created further pressure on capacity.”

Spot refrigerated rates were $2.41 per mile in May, up 9 cents from May 2023.

The DAT Truckload Volume Index, an indicator of loads moved during a given month, hit all-time highs for van and refrigerated freight loads, according to the release. The refrigerated truck loads index for May, at 224, was 4% above May 2023.

Linehaul rates, which subtract an amount equal to an average fuel surcharge, increased for all three equipment types, according to the release. The average van linehaul rate was $1.58 a mile, up 5 cents compared to April; the reefer rate jumped 9 cents to $1.94; and the flatbed rate gained 4 cents to $2.01, the report shows.

National average rates for contracted van and reefer freight declined compared to April, the release said. Contract refrigerated truck rates averaged $2.79 per mile, down 3 cents from April.

DAT: Truck contract rates to decline

Thu, 19 Oct 2023 15:31:45 GMT

DAT Freight & Analytics projects truck contract rates to decrease across all markets over the next 12 months.

However, DAT predicts truck spot rates will increase, according to a news release.

“For dry van, we forecast contract rates to continue to fall for the remainder of 2023 but not to pre-pandemic rate levels,” DAT said in the release. “We see the market reverting (spot above contract) sometime in Q1 or Q2 of 2024.”

Likewise, DAT said rates for temperature-controlled loads will follow a similar path as dry van, with spot rates increasing in the second half of the year and contract rates continuing to decline.

For both dry van and temperature-controlled, DAT said the percentage of freight moving via spot rose slightly but stayed within the 17% to 19% range.

The truckload market has been inverted (spot rates below contract rates) for 17 months, and the gap is still more than 30 cents per mile for both dry van and temperature-controlled, according to DAT.

“It will take a significant event for this gap to close any time soon — either a dramatic growth in demand or further capacity reduction,” DAT said in the analysis. “Neither seems too likely in the short term, so we are waiting on an inflection point.”

DAT believes the soft truckload market will continue for the remainder of 2023.

“There does not appear to be any dramatic surge in demand or mass exodus of capacity in the near-term that would trigger a sudden market shift,” the release said. “But, as we all know, the market will eventually turn, so shippers should get their houses in order, utilize the entire transportation portfolio, maintain strong relationships with core providers, and be prepared for the market shift.”

Global container trade faces geopolitical challenges, report says

Thu, 04 Jan 2024 16:34:24 GMT

Geopolitical risks will shape the landscape of global trade in 2024, a new forecast from Germany-based Container xChange says.

The company, an online container trading and leasing platform, released its New Year’s Edition Container Market Forecaster in early January.

Freight rates will increase in the short term to midterm, but not in the long run as “demand and supply is still highly imbalanced with no clear signs of a strong revival, the report said.

The majority of shipping professionals surveyed in December by Container xChange are gearing up to enhance resilience through strategic initiatives that include risk assessment and scenario planning, diversification of routes and suppliers and regulatory compliance, according to a news release.

The biggest headache resulting from geopolitical upheaval is the associated costs that companies will have to bear on top of the rising operating costs they have to already face, the release said.

Many customers are worried about the rising costs resulting from the Red Sea situation, like compliance charges, insurance premiums and war risk charges, and other costs, the release said.

Operating costs have been rising since soon after the rates crashed in 2022 and demand failed to recover. On top of the rising costs, these additionalsurcharges will only add to the worries of shippers and forwarders, the release said.

The inclusion of new economies in the BRICS (Brazil, Russia, India, China and South Africa) bloc, including Saudi Arabia, Iran, United Arab Emirates, Egypt and Ethiopia, sets the stage for potential polarization of global trade, impacting geopolitical compliance, the release said.

Despite challenges, 82% of industry professionals acknowledge the importance of technology for resilience in 2024, with predictive analysis and forecasting tools taking center stage, according to the release.

Amid geopolitical developments, sanctions compliance becomes critical for supply chain professionals, adding another layer of complexity to global trade, the release said. There are still many geopolitical risks that have the potential to significantly impact shipping trade in 2024, the release said, including the war between Israel and Hamas, the related situation in the Red Sea, the Russia-Ukraine war, tensions between China and Taiwan, and an increasing enlargement of the BRICS block.

Container xChange co-founder and CEO Christian Roeloffs said in the release that the Red Sea, which is currently blocked, is a vital artery for global trade.

“Thankfully, there are ways to circumvent that artery and keep the global trade moving and therefore, the trade is not stopped,” he said. “Therefore, the Red Sea situation is acute but not chronic in the long term for the shipping industry.”

What can have a far-reaching and long-term impact on the global supply chain is the BRICS inclusions of more economies, Roeloffs said.

There is a host of countries being added in the BRICS bloc, which has been viewed as a counterbalance to the Western-led world order, the release said.

“If the [bloc] starts to increasingly align political decisions and geopolitical stances, then there could be added complexities to the global trade order with rising polarization of global trade,” Roeloffs said.

“Ultimately this might lead to a situation where one [bloc] is not allowed to trade with the other [bloc] and eventually, geopolitical compliance becomes more complex and difficult.” he added.

Any geopolitical unrest has a direct and causal impact on global trade which results in market volatility, the release said, which can include trade rerouting and higher operating costs.

USDA releases more food supply infrastructure grants

Tue, 02 Jan 2024 22:26:59 GMT

The USDA Agricultural Marketing Service said it will partner with the South Carolina Department of Agriculture to offer $4 million in grants and the Oklahoma Department of Agriculture, Food and Forestry to offer $6.3 million in grants to boost infrastructure for domestic food and farm businesses.

These grants, under the Resilient Food System Infrastructure program, will support expanded capacity for processing, transporting, wholesaling and distributing locally and regionally produced food products, including specialty crops, according to USDA.

“Strengthening the middle of the food supply chain in South Carolina will provide stronger markets for local farmers, increase stability for consumers and help ensure a strong future of agriculture in the state,” Hugh Weathers, South Carolina commissioner of agriculture, said in a news release.

South Carolina grants

The South Carolina Department of Agriculture said public feedback indicated several funding priorities for the RFSI grants. It will offer infrastructure grants (ranging from $100,000 to $3 million) and simplified equipment-only grants (ranging from $10,000 to $100,000).

The state ag deparment said RFSI subawards will include:

Projects that increase local producers’ abilities to process, aggregate and distribute products through the construction, expansion or modernization of cold and dry storage facilities.
Projects that increase local producers’ abilities to process, aggregate and distribute products through the creation of additional transportation to move products and that increase distribution channels through the construction, expansion or modernization of distribution facilities.
Projects that increase processing capacity, creating new distribution channels and markets for value-added products.
Projects that purchase and/or modernize middle-of-the-food-supply-chain equipment, packaging and food safety and labor needs; and increase local producers’ abilities to process, aggregate and distribute agricultural products.

Applications for the equipment-only grant are open through Feb. 9 and for the infrastructure program through March 1 .

Oklahoma grants

The Oklahoma Department of Agriculture, Food and Forestry will accept applications for the infrastructure grants through Feb. 23 .

“This partnership between USDA and Oklahoma is allowing critical funding to reach areas of the supply chain that need it most,” USDA Marketing and Regulatory Programs Under Secretary Jenny Lester Moffitt said in the release. “The projects funded through this program will create new opportunities for the region’s small and midsize producers to thrive, expand access to nutritious food options, and increase supply chain resiliency.”

Potential projects include those that will increase cold storage, expand distribution channels for food producers and increase the number of co-packing options.

Related: USDA, California offer $30M in food supply infrastructure grants

January cold snap leads to spot-market surge, DAT says

Fri, 16 Feb 2024 22:10:58 GMT

A weather-related bump in demand for truckload capacity pushed spot freight volumes to all-time highs for January, according to a report from DAT Freight & Analytics.

All three equipment types in the DAT Truckload Volume Index, a measure of loads moved in a month, increased compared to December, the company said:

Van TVI — 250, up 11% month over month and 6% higher year over year.
Refrigerated TVI — 206, up 14% month over month and 1% year over year.
Flatbed TVI — 232, up 11% month over month and 6% year over year.

“Winter weather increased the need for trucks at a time when shippers were moving holiday returns and springtime retail goods through supply chains, and for-hire carriers were rejecting a higher percentage of contracted loads,” Ken Adamo, DAT chief of analytics, said in a news release. “This was not a case of freight volumes sustainably trending higher. Barring some other disruptive event, we expect demand for truckload capacity to meet seasonal expectations during the months ahead.”

The release said load-to-truck ratios, which measure the number of loads posted to the DAT One marketplace relative to the number of trucks, increased for all three equipment types:

Van ratio — 2.7, up from 1.9 in December
Reefer ratio — 4.1, up from 2.6
Flatbed ratio — 8.3, up from 5.1

Reefer rates jumped

Demand for trucks on the spot market pushed broker-to-carrier rates higher, with the reefer rate jumping 10 cents from December to $2.57 a mile in January. The flatbed rate rose 6 cents to $2.47 a mile. Year over year, average spot rates were down 24 cents for vans, 21 cents for reefers and 29 cents for flatbeds.

Rates for contracted van and reefer freight were unchanged month over month. DAT’s benchmark contract van rate was $2.49 a mile, and the reefer rate was $2.57.

The gap between spot and contract rates narrowed compared to December, the release said. The gap was 35 cents for van freight, down 4 cents; 31 cents for reefer loads, down 10 cents; and 63 cents for flatbeds, also down 10 cents.