“Fuel prices aren’t higher this year, but rates have been strong the entire year,” Lance Dichter, president of LD Logistics, headquartered at Hunts Point Produce Market in the Bronx, NY, told The Produce News. “This is primarily due to the shortage of trucks combined with stronger demand. We’ve seen rates get into high numbers much earlier this season. Prices peaked in April by about 20 percent higher than normal.”

LD Logistics is a third-party firm that focuses strictly on long-haul trucking. It began 10 years ago, and its middle-man function has worked well for the company. It arranges logistics between suppliers and end-users.

“We arrange logistics between the supplier and the end-user,” Dichter explained. “The majority of our deliveries are in the Northeast and the Southeast corridors. We make pickups typically in seven states — California, Arizona, Washington, Florida, Oregon, Idaho and Texas.”

The company also handles produce from Mexico once it arrives in the United States, such as McAllen, TX, and Nogales, AZ.

Dichter pointed out that the new diesel emissions standards put into place by the California Air Resources Board in 2009 are the toughest standards in the nation. They include extensive retrofitting of smog filters or cleaner engine technology beginning in 2011. By 2014, all trucks and buses must have soot filters. By 2023, no truck or bus will be allowed to be more than 13 years old unless it has special equipment to cut nitrogen oxide emissions.

“President Obama is now working on legislation that may make the ARB standards mandatory across the country,” said Dichter. “We honor our contracts that the trucks we are using for pick-up or drop-offs are compliant.”

He added that the ARB standards are likely contributing to the lower number of trucks available across the country today.

LD Logistics was already experiencing movements of stone fruits, grapes and vegetables out of California on the first of May. Northern California cherries were due to start the second week of the month.

“Come June and July, the demand for truckers is going to be very high,” said Dichter. “I think that the market will be strong and freight will start moving earlier this year. If this happens, freight costs will continue to rise. In some cases the freight could be worth more than the load it’s carrying.”

The flower market is another example of how the demand for trucks increases radically. Moving flowers out of Florida for Mother’s Day puts a huge strain on the demand, making trucking rates astronomical.

“Rates are high now — as much as $4,500 a load — and they’ll likely go even higher,” he said. “The Mother’s Day rush started the last week of April, and rates went through the roof. The same situation occurs at Christmas with trees from Washington State. You can always bank on freight costs spiking just before all the major holidays.”

Dichter offered an awakening comparison. He said that 10 years ago, moving a load of produce from California to New York City would have cost around $4,000.

“Today that same load would cost $7,300 or $7,400,” he said. “If the truck is hauling a full load of strawberries, that could mean an increase in the price of only about 30 cents a clamshell,” he said.

“But load that truck with 960 boxes of heavier produce, such as iced fresh lettuce, potatoes or onions, and the cost per box increases substantially,” he added.

During its high season the company has as many as 190 on the road weekly.

“We use computer software that has all of the information needed to track shipments from when they are picked up, the carrier’s location throughout the trip and when the truck is due to arrive at its destination,” said Dichter.

“Our drivers also check in with us daily,” he added. “Any time we stamp in an update it automatically fires out an email to the customer, and our 14 staff members stay on top of every detail at all times.

“It’s important to keep up with the times,” he said. “Doing that and servicing our customers are our primary goals.”