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April 11, 2013
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Contact Information
Steve Hull, Editor
Allen Lund Company
Manager - Portland Office
(800) 999.LUND (5863)
Is Texas the New California?

Over the past few months, I have been hearing from a number of sources that Texas may become the new California. What exactly does this mean? Are Texans learning how to surf? Will they start using terms like "tubular" and "radical" in everyday conversation? To me, it seems as likely as Californians wearing Cowboy boots!  Of course I am stereotyping, but it appears that many carriers are starting to look to Texas as a more significant player in the produce market.  

 

The new California emissions regulations seem to have a lot of people in the transportation industry concerned. Because of this, some carriers will no longer go into the Golden State and it is looking as though many others will follow suit. My personal opinion is that if you are a carrier that occasionally goes to California then that may continue, while if you are a carrier that goes to California on a daily or weekly basis then you will most likely attempt to make the necessary adjustments. One thing for sure is that these changes will result in an even more volatile market.

 

Texas appears ready to become an even bigger player in the produce market, especially when looking at the progress of this year's melon and onion supply.  According to The Produce News, supplies of storage onions in the Northwest are at the lowest levels in years.  Meanwhile in Texas, growers have over planted these last several years and will have an ample supply. The number of melons coming from Mexico has been hampered due to weather over the last few months, but now appears to be rebounding nicely.

 

What does this mean for carriers? Even though the produce market can be hard to predict, I would speculate the market to and from Texas could begin to greatly resemble the California market in the upcoming years. Though supply and demand could dictate that prices to Texas should drop and loads out should increase, it isn't likely that we will see the wild fluctuations that you see in California. One thing we know for sure is that this freight roller coaster is not going to slow down anytime soon.

 

 

Greg Baker
Assistant Manager, Richmond Office
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Greg Baker

Greg Baker graduated from Radford University and worked as a counselor for the prison system for 6 years. After some convincing from ALC Richmond Manager, Gerald Ebert whom he has known for over 30 years to leave all that behind and take the leap to Allen Lund, he did just that 11 years ago and has never looked back. 


 

 

 

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Our team is dedicated to providing you with a bi-weekly newsletter that provides you with news and discussions that are both informative and relevant to the industry. If you have an idea for a topic you would like explored in a future edition, please let us know.  Your feedback is appreciated!
 
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Your Carrier Connection Team


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About Allen Lund Company: Specializing as a national third-party transportation broker with nationwide offices and over 350 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated, and flatbed freight; additionally, the Allen Lund Company has an international division, ALC International, which is licensed by the FMC as an OTI-NVOCC, and a logistics division, ALC Logistics.

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