DRC adds transportation dispute resolution
DRC adds transportation dispute resolution
ANNAPOLIS, MD -- Companies in Canada, Mexico and the United States that are members of the Fruit & Vegetable Dispute Resolution Corp. can now turn to the DRC to resolve transportation disputes for the first time under a new resolution agreed to by top DRC officials during a July 8 meeting, here.
More than 90 percent of DRC members surveyed recently said that they supported expanding the company's negotiating power to transportation disputes, Matt McInerney, DRC chairman and executive vice president of Western Growers Association, said at the meeting.
DRC was formed to fill a void for produce sellers and buyers embroiled in disputes across borders into Canada and Mexico, and within Canada and Mexico. The latest venture into transportation is a significant departure for the group, which follows USDA's PACA guidelines, because PACA does not handle any transportation disputes. The Blue Book offers only limited mediation services.
At the meeting, the board of directors unanimously agreed to venture into this area they say will give carriers and intermediaries access to more equitable and more predictable outcomes in resolving disputes. According to Stephen Whitney, president and CEO of the DRC, the group can offer a unique service as it covers carriers and intermediaries equally well on loads from Visalia, CA, to Vancouver, BC, to Veracruz, Mexico, to Vidalia, GA, provided that the principal parties are DRC members before the fight breaks out.
"Rest assured, these transportation standards will introduce a new level of discipline into the relationship amongst all parties involved with transportation," Mr. Whitney wrote in a memo to the board. "Everyone involved will make concessions, but they will also get something in return.
A DRC task force developed the new standards -- based on The Blue Book's guidelines -- with the help of parties from the transportation sector.
DRC members said that they welcomed the latest effort to speed resolution of produce-related transportation disputes in a recent survey. This may be due to several reasons: the current system is viewed as being unfairly tilted in favor of buyers and sellers, and members feel that the current truck shortages are due in part to the ever-increasing risks of hauling produce. Whatever the reason, DRC says its five years of experience in negotiating more than 600 disputes shows that it can run an effective, timely and affordable dispute resolution process.
Mr. McInerney said that DRC's membership continues to grow. Currently, it has approximately 1,200 members, with 800 from Canada, 300 from the United States and about 100 from Mexico. DRC hopes that more members will join with the latest decision to expand into resolving transportation disputes, said Mr. Whitney.
In other news, the DRC is moving its trading assistance office from Chicago to Ottawa, effective Aug. 8. Also, the group is considering expanding to other avenues, such as floral products, nuts and frozen fruits and vegetables. All these initiatives are pending, according to Mr. McInerney.
More than 90 percent of DRC members surveyed recently said that they supported expanding the company's negotiating power to transportation disputes, Matt McInerney, DRC chairman and executive vice president of Western Growers Association, said at the meeting.
DRC was formed to fill a void for produce sellers and buyers embroiled in disputes across borders into Canada and Mexico, and within Canada and Mexico. The latest venture into transportation is a significant departure for the group, which follows USDA's PACA guidelines, because PACA does not handle any transportation disputes. The Blue Book offers only limited mediation services.
At the meeting, the board of directors unanimously agreed to venture into this area they say will give carriers and intermediaries access to more equitable and more predictable outcomes in resolving disputes. According to Stephen Whitney, president and CEO of the DRC, the group can offer a unique service as it covers carriers and intermediaries equally well on loads from Visalia, CA, to Vancouver, BC, to Veracruz, Mexico, to Vidalia, GA, provided that the principal parties are DRC members before the fight breaks out.
"Rest assured, these transportation standards will introduce a new level of discipline into the relationship amongst all parties involved with transportation," Mr. Whitney wrote in a memo to the board. "Everyone involved will make concessions, but they will also get something in return.
A DRC task force developed the new standards -- based on The Blue Book's guidelines -- with the help of parties from the transportation sector.
DRC members said that they welcomed the latest effort to speed resolution of produce-related transportation disputes in a recent survey. This may be due to several reasons: the current system is viewed as being unfairly tilted in favor of buyers and sellers, and members feel that the current truck shortages are due in part to the ever-increasing risks of hauling produce. Whatever the reason, DRC says its five years of experience in negotiating more than 600 disputes shows that it can run an effective, timely and affordable dispute resolution process.
Mr. McInerney said that DRC's membership continues to grow. Currently, it has approximately 1,200 members, with 800 from Canada, 300 from the United States and about 100 from Mexico. DRC hopes that more members will join with the latest decision to expand into resolving transportation disputes, said Mr. Whitney.
In other news, the DRC is moving its trading assistance office from Chicago to Ottawa, effective Aug. 8. Also, the group is considering expanding to other avenues, such as floral products, nuts and frozen fruits and vegetables. All these initiatives are pending, according to Mr. McInerney.
