U.S. Mexico Canada Agreement Seasonal Perishable Products Weekly Update

US grower-shippers can expect to see lingering effects of fuel shortage in coming weeks

Fuel prices stole headlines this week, spurred by the shutdown of the Colonial pipeline in response to online hackers. Although the pipeline, which serves much of the East coast, is now back online, full recovery is expected to take up to several weeks in some areas. Currently from 50-70% of gas stations are out of fuel in the states of North and South Carolina, Virginia, Maryland, Georgia, Florida, and the District of Columbia. Consumer panic buying has largely driven these shortages for gasoline, once news of the pipeline shutdown was widespread. Diesel fuel for shipping was less impacted, although it travels through the same pipelines, as diesel did not see the buying rush by consumers.

Still, grower-shippers and transportation firms can expect to see lingering effects of the fuel shortage in the coming weeks, as it will further impact the already high truck rates, which will likely trend even higher. Asparagus crossings from Mexico have transitioned to the Constitution and Baja growing regions, crossing through Texas, as most shippers in the Caborca growing region have finished for the season. Some shipments are being booked at previously committed prices while other prices are holding steady at prices from the previous growing region.

Movement of Peru asparagus is expected to increase slightly this week although there are reports this week’s vessel is delayed and will not arrive until as late as Saturday for unloading. Some buyers of the Peruvian asparagus are turning instead to domestic product as it is more available. Movement of asparagus from Walla Walla District and Lower Yakima Valley Washington is expected about the same. Trading was moderate early and fairly slow later in the week at lower prices. Movement from Central District California is expected to remain the same as supplies remain light. Most shipments are being booked at previously committed prices. Trading is fairly active with prices generally unchanged.

Movement of avocadoes from Mexico crossing through Texas is expected to decrease with moderate demand on most sizes at slightly higher prices. Demand on 48s is fairly good with active trading. Movement from the South District California is expected to increase. Trading on 48s and organics was fairly active, with others moderate. Prices on 48s and 79s was higher, with others generally unchanged.

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