Freshspective

Apples . Avocados . Bush Berries . Cantaloupe . Citrus . Grapes . Honeydew . Limes . Mangos . Papaya . Pears . Pineapple . Strawberries . Watermelon

Blueberries - Good supplies out of Georgia again this week with good production and lower than expected demand. Transition to North Carolina will begin around May 20th. We are starting to see production on the West Coast beginning with the California Valley. Expect good supplies to continue through May on blueberries on both coasts.

Blackberries - Even with lowered supplies post-peak, demand is still off and still a promotable item for May. Quality has been very nice with higher-elevation fruit being the dominate inbound. Good production and supply are expected through May.

Raspberries - A tiered market is starting to show up on raspberries between quality and availability by farmer. This may continue through the next two weeks. Higher priced fruit has meant better quality but, more importantly, consistent crossings. Hopefully, more production will be coming in the end of this week into next week, which will simplify this back into one general market price again.

[email protected]

The offshore/import cantaloupe shippers will be bringing in their final containers this week to the East and West Coasts. Initially, domestic cantaloupe shippers out of Yuma, Arizona were anticipating starting harvest this week but due to cooler than normal temperatures the past week,  the first harvests will not be seen until the week of May 13th. Volume will become more readily available the last week of May and will be primarily 9 count and Jumbo 9 count.

Citrus

[email protected]

California Citrus:

Oranges: The crop is peaking on larger fruit and there are deals to be had on 36, 40, and 48-count Navels.  Quality remains nice with good eating characteristics.  
More and more packing houses have started production on Valencias. These things taste great and have a ton of juice!  Small sizes are going to be tight throughout the summer as 72 count and larger will have the best prices and availability.  

Lemons: The lemon market has been steadily getting tighter out of California as we are starting to see District 1 fruit with quality concerns.  District 2 has been in production, but the focus here will be for better quality which will continue to put pressure on prices until Argentina starts on the East Coast.

Grapefruit: California is currently producing the Star Ruby variety which will go through June, peaking on larger fruit (32/36/27 counts).  Quality is showing nice blush with a nice internal color and flavor.

Import Citrus:

Mandarins: We will start to see early Peruvian varieties (Satsumas and Primosoles) in the market which could serve a value need. 

Lemons: It has been a slower start from Argentina due to rain in the growing region. We will be starting to load out of Argentina this week and will see availability in the Northeast as soon as week 20.  The lemon crop in Argentina is still peaking on larger fruit, so we will continue to see strong markets on smaller fruit.

[email protected]

Chile’s Autumn Crisp and other premium varieties are currently topping the market for both price and quality. Importers are struggling with inconsistent condition on all other varieties and the fumigation process is certainly impacting shelf life. There is a wide range of pricing, as marketers offer aggressive FOBs to move through weaker lots that just can’t hold long term. Regional terminal markets are filled with distressed fruit and Canada can’t absorb the volume of fruit that has failed USDA 8E inspections. Expect these trends to continue until we finally transition fully to Mexican supplies by the end of May.

[email protected]

Offshore honeydews are very light and similar to cantaloupe, are at the very end of their season. Mexican honeydews are continuing to be harvested out of North Mexico which will continue through the month of May. Markets have been depressed on honeydews with very light demand. Some growers are either trying to push out harvests or leaving fruit in the field due to market conditions. Domestic honeydews will follow cantaloupe harvests, typically starting about one to two weeks later. 

[email protected]

The demand for limes has been steady. According to the USDA, the crossings through Texas from last week were at 506.

[email protected]

[email protected]

SUPPLY NOT MEETING DEMAND FOR PAPAYA IN THE U.S. MARKET.
Supply conditions remain tight but improving, with some surplus product reported on small fruit. Prices have come down slightly in the U.S. market with crop yields in Mexico reacting better to the warmer weather. Weather conditions in Mexico are improving with yields increasing slowly, improving the forecast for the next few weeks. Inventories remain SOLD OUT, but there’s some small fruit to offer for transactional sales. Prices in Mexico are expected to remain high, keeping the lion’s share of the fruit in the local Mexican market and reducing the overall availability of papaya for the U.S. Growers will continue working on securing good quality product to keep up with U.S. demand.  Pricing is high but lower than previous weeks, with supply NOT meeting demand in the U.S. market. Most sizes are between 12 to 16, with NO Surplus in ANY caliber. Quality is reported as good, with fruit showing clean skin and little scarring; a bit more speckling has been seen on the latest arrivals. The crop outlook is for tight supply for the next two weeks.

[email protected]

We are currently shipping both green and red Anjou pears out of the Northwest this week. The market on Anjou pears has tightened up significantly over the last month and prices have jumped up as a result. The movement on Anjou has been exceptionally strong this year and we will see higher prices from now until the crop finishes sometime this summer. The tightest fruit is the high-quality large fruit which will become scarcer as the year goes on. The Bartlett pears have finished out of Washington, but we now have imported Bartlett pears arriving at East Coast ports this week. The Bosc pear crop is now finished out of Washington, but there are imports arriving from Chile and Argentina, available on the East Coast. Overall, expect to see higher prices than last year on pears for the remainder of the summer.

[email protected]

Supply is NOT meeting demand for the U.S. Market

MEXICAN volume is improving with better weather at the growing fields. Most of the country’s production is still being sold internally with a good market in Mexico helped by a strong Mexican peso. As supply improves, Mexican growers will still look at the U.S. market as best outlet to place their crop as they weigh the pros and cons of exporting their product. Transportation out of Mexico is currently stable with better availability of trucks to service pineapple shippers. 
•    Mexican fruit quality is meeting U.S. specifications with GOOD internal condition and high brix. Prices are high on all counts out of Mexico and Costa Rica.
•    Quality & Condition: Mexico has good fruit condition with high brix.  Larger fruit is most abundant. The weather is good for pineapple production.

COSTA RICA volume remains low AT PACKING with the expectation of improvement in the last weeks of May. NO surplus fruit available to pack at this time. The U.S. market remains high on all counts with supply NOT meeting demand. Costa Rica is under mixed sunny to rainy conditions with some fair weather expected this week.
•    Quality & Condition: Costa Rica’s quality is reported as good with the sizing curve mostly on smaller fruit.  
•    Movement: USDA showing a low number of loads crossing with 1,000 containers crossing FROM Costa Rica for the entire continental USA. This continues to be a low number for this time of year. 
•    Forecast: Some surplus fruit is available at specific shipping points offered by large grower/shippers at this time. The market is higher with good demand this week. 

[email protected]

California/Baja - Increased supplies are available due to increased production in Santa Maria and the Salinas/Watsonville growing areas.  Post-Mother’s Day strawberries will be highly promotable.  Oxnard will discontinue production after Mother’s Day and although Baja will continue harvest through May, the plants are past their peak. California and Baja fruit have occasional bruising, light shoulders, green tips, and misshapen.  There is medium sizing on older fruit, and Santa Maria new crop is much larger.  

California/Santa Maria for the week of May 6th  is forecast Wednesday through Saturday to be mostly sunny, becoming partly cloudy on Sunday.  Highs are expected in the upper 60s to low 70s, decreasing to the mid-60s on Sunday and lows in the 40s.  The week of May 13th is forecast to be partly sunny Monday through Saturday, then becoming partly cloudy on Sunday. Highs are expected in the 60s, increasing to the 70s on Sunday, and lows in the upper 40s to low 50s. Salinas/Watsonville for the week of May 6th is forecast for Wednesday and Thursday to be sunny, then becoming partly sunny Friday through Sunday.  Highs are expected in the low 70s and lows in the upper 40s to low 50s. The week of May 13th  is forecast to be partly sunny with highs in the 60s and lows in the upper 40s to low 50s.

[email protected]

California/Baja - Increased supplies are available due to increased production in Santa Maria and the Salinas/Watsonville growing areas.  Post-Mother’s Day strawberries will be highly promotable.  Oxnard will discontinue production after Mother’s Day and although Baja will continue harvest through May, the plants are past their peak. California and Baja fruit have occasional bruising, light shoulders, green tips, and misshapen.  There is medium sizing on older fruit, and Santa Maria new crop is much larger.  

California/Santa Maria for the week of May 6th  is forecast Wednesday through Saturday to be mostly sunny, becoming partly cloudy on Sunday.  Highs are expected in the upper 60s to low 70s, decreasing to the mid-60s on Sunday and lows in the 40s.  The week of May 13th is forecast to be partly sunny Monday through Saturday, then becoming partly cloudy on Sunday. Highs are expected in the 60s, increasing to the 70s on Sunday, and lows in the upper 40s to low 50s. Salinas/Watsonville for the week of May 6th is forecast for Wednesday and Thursday to be sunny, then becoming partly sunny Friday through Sunday.  Highs are expected in the low 70s and lows in the upper 40s to low 50s. The week of May 13th  is forecast to be partly sunny with highs in the 60s and lows in the upper 40s to low 50s.

Organic Apples . Organic Dry Vegetables . Organic Melons . Organic Onions . Organic Pears . Organic Potatoes . Organic Squash . Organic Sweet Potatoes

Market cycle conditions remained soft as we entered April, but there are signs of volume increases as the produce season ramps up. While we expect the overall impact to remain fairly muted due to general market cycle weakness, there will be pockets of tightness. To combat this, work with your account team to provide visibility to supply chain needs so they can build the proper lead time and flexibility into the loads.
 
East Coast – Throughout the East Coast, loads continue to move with a high level of velocity. Produce season has started in South Florida with select commodities. We should see it in full swing from May through July.  We’re not expecting significant issues with coverage.
Central U.S. – Capacity markets through the Mid-North and Mid-South regions remain soft. No foreseeable disruptions through June. South Texas produce season will begin in the coming weeks; but due to the market softness, we don’t expect overwhelmingly large cost increases.
West Coast – The Pacific Northwest has moved beyond any weather disruptions and capacity is available. There was some slight tension through the Easter holiday, but nothing lasting. Transition season is in full swing as harvesting moves from Arizona to the Salinas, California region. Work with your C.H. Robinson team to stay informed on regionalized opportunities and how to best schedule freight to capitalize on the best price and service.

GLOBAL UPDATES 

PANAMA CANAL - The Panama Canal is facing challenges due to both delays and drought, impacting operations. The drought has caused water levels in the canal to drop, making it difficult for vessels to pass through efficiently.  

Recently, shippers have noticed a reduction in disruptions caused by low water levels along the Panama Canal. Carriers are resuming transits through the waterway for certain east-west services, and they are also exploring alternative options to transport cargo. 

PORT OF SAVANNAH - In October, the Port of Savannah experienced robust activity, handling 449,000 TEUs, marking its fourth busiest month on record and registering a notable 5% increase compared to the same month in 2019, which was unaffected by the pandemic. This growth suggests that the Port of Savannah is not only handling increased overall cargo but is also strategically investing in infrastructure to accommodate the specific needs of the fresh produce sector. With a focus on facilitating trade and improving efficiency, the Port of Savannah aims to provide a more conducive environment for handling perishable goods. The expansion aligns with broader efforts to meet growing demands and underscores the port's commitment to maintaining its status as a key gateway for imports, offering world-class services to its customers. This development is likely to have positive implications for the agricultural and perishable goods industry, fostering smoother and more reliable transportation of produce through the port. As the Port of Savannah continues to invest in its infrastructure and capacity, stakeholders in the produce import sector can anticipate improved handling processes, reduced bottlenecks, and an overall more streamlined experience. The expansion not only reflects the port's adaptability to growing trade volumes but also signals a commitment to meeting the specialized needs of industries such as fresh produce, contributing to the port's significance as a vital trade hub in the region. 

OCEAN CARRIER CONSOLIDATION - Fresh produce growers and shippers attempting to move cargo globally via ocean vessels are dealing with scenarios where ocean carriers genuinely dictate some markets.  They dictate and determine the marketability and viability of export markets for many fresh produce exporters.  Shippers are being forced to commit earlier to ocean lines to reserve space for upcoming seasons, and spot-market space on vessels is nearly impossible to secure. 

RED SEA SHIPPING CRISIS – Hundreds of ships are currently diverting around Africa to avoid attacks in the Red Sea, causing delays to global trade and inflicting months of disruption and imminent price rises on supplies. Crisis has led to double insurance costs and soaring demands for security services, which has raised prices and affected availability of fresh produce from Africa and Australia.  

DEMURRAGE/DETENTION CHARGES -  Shippers negotiating with ocean carriers or freight forwarders on perishable cargo contracts should request as much free time at destination as possible to reduce the risk of detention/demurrage charges when inspections/fumigations or drayage capacity constraints delay cargo delivery at destination.  Unavoidable and unprecedented demurrage and detention charges due to delays in turning cargo at destination continue in 2024. 

For more global freight insights please visit Global Freight Markets Insights | C.H. Robinson (https://www.chrobinson.com/en-us/resources/insights-and-advisories/global-forwarding-insights/) 

Mother’s Day is in full swing with last loads being delivered to retailers up until May 10th.  Capacity in the South Florida market is still tight.  It should improve toward the end of the week.