Today’s gleaming Philadelphia Wholesale Produce Market has come a long way, given its humble beginnings. Though the market is still a relatively new facility, as always in the perishables industry, there are challenges and achievements—among them the unpredictable weather, shipping and transportation problems, and food safety, as well as the promise of new products and exotic fruits and vegetables making their way into the city.
Trials and Triumphs
With each new era, the industry seeks to position itself for the long term. Similarly, each decade brings triumphs and challenges commensurate with the scope of its reach. Significant triumphs boast a number of high-tech firsts in storing, cooling, and ripening. “We’ve built new banana ripening rooms where we have the ability to ripen from our iPhones—even while away from work!” enthuses Tracie Levin, general manager for M. Levin and Company, Inc. And although the Philadelphia Wholesale Produce Market (PWPM) provides buyers and sellers with ample space to wheel, deal, and maneuver, there are still impediments.
The Transportation Migraine
The one challenge that seems to trump all others at the Philly market is transportation. “Finding reliable, available, and affordable transportation seems to be worse this season,” says Michael Cutler, president of Michael Cutler Company, in Olyphant, PA. He is looking to transport full truckloads, and is not alone in his frustrations.
“Transportation is the headache,” confirms Jack Collotti, president of Collotti & Sons, Inc. “It’s getting harder and harder to get it as fast as you need it.”
Mike Maxwell, president at Procacci Bros. Sales Corp., estimates the cost of transportation inflates five to six percent every year. “I do see it as equitable between competitors,” he shares, noting all providers tread against the current of mounting regulations on equipment and drivers. “I wish I could see an end.”
The issue is governed partly by supply and demand, and partly by Uncle Sam. First, the demand for California product outweighs demand for East Coast goods. As a result, New England merchants pay a lot more to get a truck from California than it costs for California to get a truckload from the East.
Fred Penza, president of Pinto Bros., Inc., explains, “We pay around $7,500 for a truck from California to Pennsylvania, but when the truck goes back hauling chicken wings or pharmaceuticals, for example, they’re only charged $4,000 or $5,000. I’d like to see that leveled out—it’s not fair,” he remarks.
Plus, the supply of carriers willing to truck to California is declining. California’s emissions regulations far exceed other states. To comply, tractors, reefers, and trailers must be retrofitted with special filters to the tune of $20,000 to $30,000 per installation, Penza estimates. “We’ve lost a lot of independent carriers who used to truck to California,” he asserts. “They just can’t afford it.”
