Target Interstate gets fresh produce to where it needs to go in the most efficient way
Target Interstate gets fresh produce to where it needs to go in the most efficient way
Getting fresh produce to where it needs to go, in a timely way, in good condition and with the highest level of customer service is what Target Interstate is known to do.
The highly regarded logistics company headquartered in Hunts Point Terminal Market was started 35 years ago. It covers the nation with the highest level of logistical services.
Paul Kazan, president, said the company is proud to have developed the loyal customer bank that it has.
“Our contract work continues to grow,” said Kazan. “This past winter and early spring were particularly challenging in the fresh produce business, and our contract work helped to fill our lanes with enough volumes to keep our trucks busy. We do a lot of business inside Hunts Point market, but we also do a large business outside of it, which is mainly where our contract work comes from. We like a good balance of both.”
He explained the importance of contract work using an analogy. A restaurant chain uses 50 loads of a commodity a week, for example. Target Interstate is under contract to handle a portion of those loads. This helps to keep trucks on the road even when produce volumes are low. And in most cases contract agreements have set rates.
That contract work was a blessing during this past winter and spring, which Kazan said was the produce industry’s rendition of a perfect storm.
“When fuel prices drop, break-even points also drop,” he said. “El Niño was a killer for every region. There was no product coming out of Mexico, Florida, California or anywhere else during the winter and early spring. The reduced volume brought rates down even further. Added to this, despite what anyone says, the economy is sluggish.”
The combination of factors resulted in everything being out of balance causing truckers to take a major hit.
Target Interstate was able to offset some of the downward spiral with its new office in Jacksonville, FL.
“This added revenue enabled us to stabilize,” said Kazan. “We are now in negotiations with a big player to extend the Florida agency. We also have company offices in the country that are extensions of us in a sort of back office architecture. We pay the truckers and we receive a part of the revenue and brokerage.”
Target Interstate is fully updated in its technology programs. Kazan explained that it knows where every one of its loads are at all times, and truckers like to use the system to communicate with Target’s representatives.
“Customers typically only want to know that their loads are going to be delivered when they are due,” said Kazan. “But it’s important to them to know that we are tracking every load so they don’t have to.”