Federal Court Reverses USDA Decision on Chilean Table Grapes
Posted on October 13th, 2025
A federal court has overturned the USDA’s 2024 decision to allow Chilean table grapes into the U.S. under a Systems Approach, reinstating the long-standing requirement for methyl bromide fumigation. The September 30 ruling by U.S. District Judge Amir H. Ali called the USDA’s approval “arbitrary and capricious,” sending ripple effects through both the U.S. and Chilean grape industries.
Judge Ali found that the USDA’s Animal and Plant Health Inspection Service (APHIS) failed to properly evaluate alternatives to fumigation, including safer and already approved chemical treatments. He also ruled that the agency relied on outdated data and withheld full research results from public review, making it “impossible to know whether its conclusions were accurate.” Finally, the court said APHIS did not consider the impact on U.S. growers who have long depended on fumigation to prevent pest introduction.
The USDA argued that the Systems Approach would still mitigate pest risk, but the court rejected that reasoning. As a result, Chilean exporters will once again need to fumigate before shipping to the U.S.—at least until the USDA decides whether to appeal.
In Chile, industry leaders expressed concern over the ruling. Iván Marambio, president of Frutas de Chile, said the organization is working with legal teams, the Chilean Embassy, and U.S. agencies to assess the decision. He emphasized that the Systems Approach followed a lengthy, multi-year review process that included high-level discussions between Presidents Biden and Boric.
For importers and retailers, the decision adds short-term uncertainty to Chile’s upcoming export season. Fumigation increases logistical costs and time but maintains the phytosanitary standards that have long protected U.S. growers. For domestic producers, the ruling underscores the need for scientific rigor and transparency in future market access decisions.
Emergency CDL Rule Could Impact Trucking Capacity and Pricing
Posted on October 5th, 2025
The U.S. Department of Transportation has announced an emergency rule that could significantly reshape the driver pool in the U.S. trucking industry. The rule requires states to pause issuing “non-domiciled” commercial driver’s licenses—licenses for drivers who are not U.S. citizens or permanent residents—until they comply with new federal standards. Going forward, drivers must present a valid passport and work visa, and their licenses will expire when that authorization does, capped at one year. Anyone without legal status is no longer eligible. Mexican and Canadian drivers remain exempt through separate agreements.
California is at the center of this battle. The DOT accused the state of issuing thousands of licenses improperly and has given it 30 days to comply or risk losing $160 million in federal highway funds, with penalties doubling in the second year. Other states—including Texas, Colorado, Pennsylvania, South Dakota, and Washington—are also under review. Perhaps most importantly, DOT has suggested the rule could be applied retroactively, which would invalidate licenses that were already issued and immediately sideline active drivers.
For produce shippers, the implications are clear. Any contraction in the driver pool reduces available capacity, and that tends to drive rates upward. California and Texas, in particular, rely heavily on immigrant drivers, meaning fresh produce lanes in and out of those states could be the first to feel the pinch. With this rule taking effect just before Q4 retail peak—and only a few months before spring produce imports ramp up—capacity could tighten quickly in regions where trucks are already scarce during seasonal surges.
While the ultimate impact will depend on how states respond, the new federal rule adds another layer of volatility to an already unpredictable transportation market. At Direct Source Marketing, we are monitoring these developments closely and will continue to update our partners as the situation unfolds. Shippers should be prepared for potential rate increases and capacity challenges in the months ahead as this mandate reshapes the driver landscape.
Delays Through the Panama Canal
Posted on August 27th, 2023
The upcoming import fruit season faces a significant challenge due to congestion at the Panama Canal, a vital trade route for importing fruits and other goods into the United States. Currently, there are 154 vessels awaiting passage through the canal, and this congestion is exacerbated by ongoing drought conditions that have disrupted normal operations since spring. The wait time to cross the canal could be up to 21 days in some cases.
The Panama Canal is of immense importance to U.S. shippers, especially those heading to Gulf and East Coast ports. Being the largest user of the canal, the U.S. accounts for about 73% of its traffic, with 40% of U.S. container traffic passing through annually, carrying around $270 billion in cargo.
The congestion results from water conservation measures implemented by the Panama Canal Authority (PCA) in response to the drought. These measures have led to a reduction in booking slots for Panamax vessels, the largest ships capable of crossing the canal. The number of daily pre-booking slots has been reduced from 23 to 14. Additionally, the daily transit capacity of the canal has been adjusted downward to an average of 32 vessels per day, compared to the usual 34 to 36, forcing ships without reservations to wait.
This situation has prompted concerns about the upcoming import fruit season. The backlog of ships waiting to cross the canal could lead to delays and increased costs. Ships lacking reservations are compelled to wait, potentially causing disruptions in the supply chain. The reduced water levels also add complexity, requiring vessels to be lighter, which might lead to unloading and reloading cargo, further delaying shipments.
The backlog and uncertainty have prompted some shippers to consider alternative routes, such as the Suez Canal, which could add significant transit time and fuel costs to the journey. This could result in higher freight costs, longer lead times, and ultimately, higher prices for consumers.
Direct Source California Table Grapes
Posted on July 18th, 2022
Direct Source Marketing is proud to announce that we have started packing California table grapes in our private label. Below are pictures from our first Flames of the season.
No End in Sight for Global Supply Chain Disruption
Posted on October 25th, 2021
Disruptions in the supply chain are not going away. Every sector of the transportation industry has been particularly hard hit since the pandemic started in early 2020. Massive dislocations are present in the container market, shipping routes, ports, air cargo, trucking lines, railways and warehouses. The result has created shortages of key manufacturing components, order backlogs, delivery delays and a spike in transportation costs and consumer prices.
As the holiday season approaches, the logistics industry is bracing for another jump in demand that could further cripple the supply chain. Every link in the chain needs to operate effectively to restore order in the system, yet each component has its own unique challenges to overcome.
A shortage of Commercial truck drivers across the country continues to hamstring the industry. Frustration with employment prospects, safety concerns, expanded unemployment benefits and having kids at home have contributed to drivers leaving the industry. The situation has become so dire that Politicians are exploring a myriad of options to aid the supply chain, including lowering the age of CDL drivers from 21 to 18 and tapping the national guard to help with port congestion.
Similarly, backlogs at truck and part manufacturers have made it increasingly difficult to service equipment already on the road. Waitlists for new tractors and trailers continue to grow and shortage of backlogged parts, including semiconductors, have caused further delays in delivery. Unfortunately, as we head into the holidays, expectations are for the situation to become worse, not better. Expectations are to see elevated transportation costs, disrupted capacity and interruptions in service for the foreseeable future.
Canceled Routes Contribute to Container Shortages
Posted on December 27th, 2020
As Covid-19 brought global trade to a standstill earlier in the year, many shipping lines were forced to cancel departures and reduce their services from port to port. With significantly more demand for ocean freight now, shipping lines are doing their best to reposition equipment, but logistically, it could take several months before we see normal service and consistent availability. A recent report by the maritime consulting firm Drewry acknowledged that the recovery in shipping throughout the second half of the year took everyone by surprise, creating uneven levels of activity. More directly, Peru continues to increase production across many agricultural categories, creating increased demand for refrigerated shipping. The recent labor stoppages have also impacted the shipping lines. Agricultural operations in Peru have now been shut down for two out of the past four weeks, leaving many shipping lines no choice but to leave port with boats half full. As growers in Peru try to get back to a sense of normal activity, there will be huge demand on the shipping lines to move cargo that has been sitting in cold storages. It’s more than likely that the produce industry will have to manage through these challenges well into 2021.
Striking Farm Workers Block Peru’s Main Highway
Posted on December 6th, 2020
Work stoppages and protests, which started in the southern agricultural region of Ica, spread quickly throughout the entire country last week, bringing the majority of all agricultural exports to a complete standstill. The unrest stems from an agri-law they say enables exploitation by agricultural firms throughout the country. Framed as temporary legislation when it was enacted in 2000, the Agrarian Promotion Law was extended last year until 2031. Labor organizers argue that the law doesn’t establish a maximum of working hours in a day, allows firms to recruit temporary labor in order to withhold commissions and allows for loop-holes for agri-businesses to avoid providing benefits to laborers. The law also gives tax incentives to growers, which have been responsible for growing agricultural exports within Peru from a few hundred million to nearly 8 billion since the law’s enactment. Negotiations involving representatives of the government, major agri-business, labor representatives and the clergy have yet to find common ground. With support from the police force, major highways have been reopened but the situation is still very unstable and the majority of farm workers are not willing to cross the line for fear of retaliation from strike organizers.
While there is validity to many of the worker’s claims, the lion’s share of abuses come from unregistered labor contractors that do not comply with the industry’s standard business practices. The majority of established agri-exporters, especially companies that export to the United States, are mandated and regulated by the fair practices and social compliance standards set by SMETA (Sedex Members Ethical Trade Audit). This should be a wakeup call for importers and retailers in the United States to continue pushing their agricultural partners in Peru for active social reform and compliance. Just as FSMA has become law, it’s just as important that social compliance become the standard for doing business around the world. At Direct Source Marketing and our Peruvian farming subsidiary Agro Direct, it has always been a top priority.
Over the weekend, the government abolished the law with promises of rewriting it with more favorable terms. Labor crews have tentatively agreed to return to work on the condition of continued progress. With hundred of millions of dollars influx, the government will be working diligently to remedy the situation in a timely fashion.
Reefer Freight Rates Spike 20%
Posted on August 3rd, 2020
Over the past four weeks, we’ve seen a major reduction in trucking capacity and a 20% spike in overall transportation rates. At first thought, one might suspect that the challenges were COVID related, but that’s only partially true. The problems facing the industry started last year in what Business Insider termed, “2019 Rocked By A Bloodbath,” after 2 large trucking companies filed for bankruptcy, leaving thousands of drivers out of work. At the start of 2020, there was already a shortage of equipment and drivers, but that deficiency wasn’t fully felt during the sluggish winter months. By March of this year, much of the nation was locked-down due to the ongoing health crisis, which again masked the mounting issues in the trucking industry. As the country continues to open in phases and a normal flow of business resumes, the demand for refrigerated trailers has increased exponentially. Unfortunately, in the current climate of financial uncertainty, we’re continuing to see more asset based carriers file for bankruptcy. It’s unclear how the nation’s $800 billion transportation industry will fare through the remainder of the COVID-19 crisis, but it’s certain that agriculture and all other sectors that rely on transportation will continue to be affected.
Direct Source Expands Its Farming Portfolio
Posted on August 26th, 2019
Agro Direct, a subsidiary of Direct Source Marketing is excited to have been recently licensed to produce Autumn Crisp Green Seedless, a highly regarded product from Sunworld Innovation. Autumn Crisp are in great demand globally and is known for its large size, snappy crunch and high sugar content. Agro Direct expects to have its first production by February of 2021. They will also be looking forward to their second crop of Sunworld Superior Green Seedless as well as Red Globes for the Asia market. Agro Direct first started farming sweet onions in Villacari Peru, and still produces some of the finest quality Century variety sweet onions in the country.
Optimistic Outlook for March & April Strawberry Supplies
Posted on February 24th, 2019
California strawberry shipments were effectively sidelined the entire month of February as persistent rain events hampered overall production in Oxnard. The additional precipitation and cool weather have delayed harvest schedules but helped overall plant health and fields are now primed and staged for consistent production as we head into the month of March. Once shipments from Mexico and Florida wrap up and California fields come fully online, retailers will jump right in as there is always a clear preference for California fruit. Although there is good volume expected, overall strawberry acreage in Oxnard is lower in comparison to previous years. Growers and shippers in the region may not be able to support the entire industry early in the transition, and we could see FOB’s spike in the short-term until supply and demand equalize. Santa Maria fields aren’t expected to come online for another 3-4 weeks, leaving growers and shippers in Oxnard the sole task of supplying the industry through the month March. Once Santa Maria and Oxnard are both in full production, there should be excellent volume to support promotional activity through the month of April.
