Ocean cargo: No peak shipping season? Tell that to agricultural shippers

Patrick Burnson, Executive Editor -- Logistics Management, 6/16/2008

SAN FRANCISCO—With the advent of globalization, the popular assumption among trade experts is that containerized shipping’s “peak season” is a thing of the past. Tell that to today’s U.S. agricultural community.

 “Most shippers of fruits and vegetables have a very short window of opportunity,” said Tammy Rossi, transportation manager of logistics operations for Blue Diamond Growers in Sacramento, Calif. “And if outbound ocean carrier space is not available they are scrambling to find some way to move a very perishable product.”

 Speaking on a “shipper perspective” panel at this year’s annual meeting of the Agriculture Transportation Coalition (AgTC), Rossi said that this should be a great time to be an exporter.

 “California has been the most productive agricultural state in the nation for the past 50 years,” she said. “Our orders are up by 6 percent overall. And because of the weak dollar, we are seeing an increase of 54 percent in the European Union. One would expect that with the trade imbalance, we should be living a dream. But upon closer examination….it’s a nightmare.”

 The “nightmare” begins, she said, when logistics professionals begin trying to locate a container and chassis for the scheduled move. Then they have to arrange for a truck and driver for the drop off at the port. The process, while routine, is made more difficult now by a shortage of equipment and human resources.

 “And when you’ve put it all together,” she noted, “the carrier may suddenly call and say that they are overbooked and can’t take your cargo.”

 In an interview with LM, Rossi said that for almond shippers the impact is severe, but not catastrophic. The commodity can be stored for several months without spoilage.

 “It would have been interesting to hear from peach shippers on the issue,” she added.

 She told AgTC colleagues that the biggest disappointment comes when all the right things have been put in place by the shipper, and the carrier fails to “honor the commitment.”

 “That’s when we will consider going to an NVO (non-vessel operator) for service,” she said.

 Blue Diamond will see a surge in demand in September and October, said Rossi. The imperatives driving its “peak season” are unique.

 “Europeans love marzipan,” she explained. “And only California almonds will satisfy those recipe requirements. Fortunately, for us, the product sourced from Spain or elsewhere in the region won’t do. We are just hoping we’ll be able to meet all the orders.”