March/April 2022 - 14

LOGISTICS
SHIPPING BACKUPS
cold storage in key markets like
California, Florida and the Northeast, "
Lapage said. " A lot of shippers want to
build more, but there is a shortage of
trade and land right now. "
Delays and rates will remain high
for the foreseeable future, the panelists
agreed. The volatility of the situation
makes it hard to know how high to
expect rates to rise.
When asked by an audience member
how much companies should budget
for freight, Moore said the situation is
too unpredictable to give a long-term
suggestion.
" Proceed with caution, " he said. " I
would say shorten the length of time you
want to budget for. Things are changing
quickly, so shorten your cycle. "
Get commitments and contracts in
place early, Lapage said. " Don't wait
until your current contract is up to
start negotiating your new one, " he
said. " Listen to your carriers about
why the rates are what they are with
labor costs and other factors, and be
fair with them. Find a partner who
wants to work with you, especially if
they can offer you other services, like
packaging or whatever. "
Having established partnerships with
carriers and being a good customer are
going to be especially valuable, given
the scarcity of options.
" Right now it's more important than
ever to be the best shipper and best
receiver, " Treacy said. " These drivers
have a choice right now. If you don't
think you're going to pay more than
your neighbor who does respect
appointment times and loading times,
then you're mistaken.
" If it (your reputation) is bad enough,
you may get to a point where they
refuse to haul for you. "
The International Fresh Produce
Association (IFPA) is a new industry
organization that was formed when
the Produce Marketing Association
and United Fresh Produce Association
merged to form a new entity. It launched
Jan. 1, 2022. IFPA holds weekly virtual
town hall discussions at noon ET on
Wednesdays. Visit freshproduce.org
for more information.
USDA announces 'pop-up'
loading site near Oakland
On Jan. 31, Agriculture Secretary
Tom Vilsack announced plans to
increase capacity at the Port of Oakland
in Oakland, California and improve
service for shippers of U.S.-grown
agricultural commodities.
The U.S. Department of Agriculture
(USDA) is partnering with the Port of
Oakland to set up a new 25-acre " popup "
site to make it easier for agricultural
companies to fill empty shipping
containers with commodities. Fewer
containers have been made available
for U.S. agricultural commodities,
as ocean carriers have circumvented
traditional marketing channels and
rushed containers back to be exported
empty and as a result, many of these
carriers have suspended service to the
Port of Oakland.
14 MARCH/APR I L 2 02 2
http://www.freshproduce.org
March/April 2022

Table of Contents for the Digital Edition of March/April 2022
