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.