The Characteristics and Structure of the Produce Trucking Industry

V. The Characteristics and Structure of the Produce Trucking Industry

This section is concerned with some characteristics of the American trucking industry and its relationship to fresh produce transportation. The U.S. Department of Agriculture, Agricultural Marketing Service, reported that in 1996, 92.8 percent of the U.S. fresh produce was transported intercity by truck. The remainder was delivered to market as follows: by rail, 4 percent; piggyback, 2.7 percent; and air/water, 0.5 percent.

For the past two decades trucks have transported more than 85 percent of all U.S. fresh fruit and vegetables marketed according to USDA data. The California Trucking Association estimates that 98 percent of California’s fresh fruits and vegetables were hauled intercity by trucks in 1997.12

At one time the produce trucking industry was made up of owner-operators, i.e., the drivers owned the vehicle they drove. Today, there are fewer owner- operators and more firms owning a fleet of trucks.

The exact structure of the industry is difficult to quantify because most trade group data are aggregated. For example, the California Trucking Association (CTA) estimates there are 14,000 trucking firms in California. But this number represents parcel delivery firms, local delivery firms, and the "big rigs." A December 12, 1997 Internet document by CTA indicates there are about 3,000 freight hauling firms in California.6 In the 1996 I.T.C.C. study, 73 percent of the drivers worked for firms. Only 23 percent of these drivers were owner-operators.

Fleet Size

There are about four million U.S. trucks owned by about 423,000 firms;5 therefore, the average fleet size is 9.5 trucks. While there are many large trucking firms, it is estimated that 69 percent of the trucking firms have fewer than six trucks.5 CTA estimates that in California, fleet size per firm ranges between five and 75 trucks. While there is a tendency toward the development of fleets, the average fleet is still fairly small.

The Truck Broker

Produce brokers usually bring together a seller (shipper) and a buyer (receiver); however, truck brokers provide a unique role in produce transportation. This broker brings together the shipper, the trucker, and the receiver. Truck brokers are being increasingly used in produce transportation.

Truck brokers frequently handle the details of finding a trucker, specifying the requirements of the shipment, the specifics of payment, and the general logistics of shipping a given load.

The increased use of truck brokers is very likely related to the fact their use minimizes the problems shippers and receivers encounter in meeting regulations such as driver qualifications, vehicle conditions, payment specifications, and general trucking regulations. The truck broker usually handles the "paperwork" of produce hauling.

Equally important is the location and arrangement for trucker back hauls. Because of the competitiveness of freight rates, back hauls are important to make a trip profitable.

{ CATI , also CAB , CFSNR , CIT , VERC }