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A Powerful East Coast Link

Hunts Point serves as a nexus of East Coast and global trade
A Powerful Link

“The U.S. Department of Transportation rules are slowing trucks down,” comments Paul Kazan, president of Target Interstate Systems, Inc. “They changed California delivery from a four-day trip to a five-day trip. I’m seeing a lot of business transitioned away from trucks to rail; a quick rail load can be here in five days and compete on price. Also, trucks have to be unloaded right away, whereas with rail the car can serve as storage for a few days.”

Kazan says Railex, the Rotterdam, NY cold chain rail shipper, has grabbed some of the produce business, impacting cross-country drivers—but the shift might help truckers who do load-to-load and multiple-stop deliveries.

Another concern for carriers, and more so brokers, is liability. According to Kazan, lawyers involved in accidents with trucks are more likely to go after brokers for damages these days. Extensive coverage of the fatal crash involving a Walmart driver and comic Tracy Morgan on a New York freeway has increased visibility even more, especially with the driver’s admission that he had violated hours of service rules.

“Brokers are now liable for the trucks they put on the road,” Kazan continues. “There are regulations based on vehicle maintenance, driver performance, accidents, and so forth. We have to do our due diligence and only use drivers and trucks that meet requirements.”

Even so, Kazan is seeing a 50-percent increase in earnings this year compared to last, primarily from switching his business model from the spot market to more contracts. He also says technology is becoming much more important to the industry: new onboard trackers, and even iPhone apps, can transmit real-time location and temperature information and help brokers, carriers, and customers track loads. While these apps can be critically important for delivery issues and traceability, not all drivers are happy about the intrusion.

For its part, Target Interstate offers a financial incentive to drivers who download the company’s app. “But in the near future,” Kazan stresses, “electronic, traceable logbooks are going to be the norm.”

Conclusion
Overall, business at Hunts Point is “marching along,” as D’Arrigo says. Most vendors are reporting better business this year, expanding product offerings, and a few are making investments in their future with upgrades and renovations. Will the trend of consolidation into a handful of one-stop megahouses continue? Few can say, as the wholesale market evolves as much as its environment—the vibrant, multicultural nerve center of the Eastern Seaboard—New York City.

Image: ©iStock.com/fotostorm/aurigadesign/Davel5957/Lisa-Blue

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Chris O’Brien is a writer and researcher based in Boulder, CO. He specializes in business trends with a focus on sustainable industries.