Categories
SOLUTIONS

Best Practices to Mitigate Risk Transporting Produce

DRC’s Trading Assistance Staff has contacted Thermo King to understand better how a reefer unit operates and to learn what they recommend as best practices for transporting fresh fruits and vegetables. Here’s a list containing valuable insights you can use when preparing your next load:

PRE-LOADING

✔ Pre-cool and store cargo at a desired temperature to remove heat.

  • Confirm the product is at the desired temperature before loading.
  • Refrigeration units are designed to maintain temperature, not to change it.

Run Reefer Unit 20 Minutes in “High Speed Cool”.

  • To remove residual trailer/body heat.
  • Perform Automatic “Pre-Trip” to confirm proper unit operation.
  • Unit: MUST” pass test.
  • If Auto Pre-Trip fails, follow your company’s prescribed procedures, or contact your local dealer for assistance.

Set unit controller to the desired temperature.

  • Verify the settings after changing it to confirm that it is correct.

Select Mode of Operation.

  • “Continuous Run” or “Cycle Sentry”. For fresh fruits and vegetables, always run the unit on the “Continuous Run” mode.

Pre-cool trainer and truck body.

  • To desired temperature to remove residual heat.
LOADING

Turn the unit “OFF” while loading.

  • To minimize heat and humidity entering trailer / truck body.
  • Verify product is at proper temperature.

Load Product quickly and efficiently.

  • Provide adequate air circulation around and through the entire load.

Close doors and start unit.

  • Re-confirm Continuous Run operating mode and set point temperature.

Strip curtains.

  • Always recommended in distribution.
  • Keep conditioned air in and outside air out.

Door openings.

  • Minimize the number door openings and their duration.
  • Ambient air migrates in, and trailer / body air migrates out.
TRANSPORTING

Proper airflow is CRITICAL.

  • Poor air distribution causes product deterioration, even with adequate unit capacity.
  • Obstructions cause poor air flow and product hot spots.
  • Proper air circulation: Unobstructed paths on all 6 sides of load.

Good airflow has 4 Key Factors:

  • Use three-way block pallets to help provide adequate air flow.
    • Do not obstruct floor under cargo. It prevents air from returning to the unit.
  • Slip sheets and hand stacking are not optimal for temperature management.
    • Inside of trailer / body must be clean to prevent contamination:
    • T-Floor must be free of obstruction.
    • Debris can block air circulation.
    • Debris can be pulled into unit, resulting in insufficient cooling.
    • Use loading patterns that provide adequate air pace.
  • Exercise Caution!
    • Provide adequate air space between top of the cargo and ceiling.
    • Products should be loaded evenly to avoid air flow restrictions.
  • Do not block unit evaporator air inlet (return air). It restricts air flow.
    • Do not load product tight against unit, walls, or doors.
    • Do not load product to ceiling. It causes air to short cycle.
VERIFICATION AND FURTHER RECOMMENDATIONS

Verify Pre-cooling.

  • Pre-cooling product and trailer / body to desired temperature prior loading.
  • Position trailer / body tight against dock seals when delivering. Supervise opening and closing of doors.

Do not operate unit with doors open.

  • Until will blow conditioned air out and draw outside air in.

Keep doors closed whenever possible.

  • Keep door openings few and fast. Cold stays in, heat out.
  • Turn unit “off” before opening doors.
  • Box temperature recovery time is significantly increased by the entry of outside air.
  • The greater the difference between set-point temperature and actual box temperature, the longer it will take to recover back to set-point.

Use strip curtains.

  • Strip curtains reduce internal and external air exchange. This helps to limit interior temperature changes.

Non-refrigerated docks:

  • Turn refrigeration unit “off”. Minimize product exposure to ‘improper temperature areas.’
  • Maintain an effective seal between trailer / body and dock.

Refrigerated docks and refrigerated cross docks:

  • Back trailer / body tightly against docks seals before opening doors.
  • Minimize door openings.

Cross docks distribution:

  • Move product quickly. Minimize the time it will be exposed to ‘improper temperature areas.’

Ground delivery for:

  • Supermarkets
  • Convenience stores
  • Restaurants
  • Direct Store Delivery

Turn refrigeration unit ‘off.’

Minimize door openings.

Use strip curtains.

The information in this article was provided by Randy Green of Thermo King Eastern Canada, Ontario Division.

Contact: Randy Green at [email protected]

Thermo King

Thermo King, founded in 1938, is the world leader in manufacturing transport temperature control systems for a variety of mobile applications including trailers, truck bodies, buses, shipboard containers, and railway cars. Thermo King products are backed by a nationwide dealer network which provides expert factory-trained service and a complete line of genuine and competitive parts.

Categories
SOLUTIONS

Contract of Sale: A Practical Tool for Dispute Prevention and Business Clarity

While the DRC has helped resolve disputes worth millions, we are equally committed to counselling and educating our members on sound business practices to prevent conflicts. Our dispute resolution model mitigates risk and fosters trade among our members. We provide a variety of easily accessible resources for dispute prevention, such as confidential consultations, the DRC Help Desk, seminars, guest speaking opportunities, fact sheets, the Solutions Newsletter, and more.

COMMUNICATE AND DOCUMENT

Did you know the most effective strategies to prevent disputes are often the simplest? They are so straightforward that they can be summed up in two words: COMMUNICATE and DOCUMENT. These two actions, when consistently practiced, can have a profound impact on your business operations. They enhance clarity, prevent potential conflicts, and pave the way for smoother transactions.

Recognizing the importance of communication and documentation is one thing, but putting it into practice is another. The DRC has developed a practical example – a Contract of Sale to support you. This tool is designed to help you apply these best practices in your own transactions, ensuring clarity and transparency and laying a strong foundation for dispute prevention.

If you have any questions and would like to learn more, our team at the DRC is here to assist you. We value your inquiries and are eager to provide support. Click here to proceed.

Categories
SOLUTIONS

Membership Update for May 2024

New Members List | Membership Change in Status 

Welcome new members!

We are pleased to welcome the following 23 new members during the month of May 2024. Here’s a list of who they are: 

15421306 CANADA INC., ON, Canada
ACH DISTRIBUTION INC. / DISTRIBUTION ACH INC., QC, Canada
AGROEXPORTADORA VERDI, SA DE CV, Sinaloa, Mexico
BRUCE HANSHAW FARMS INC. (Also d/b/a Hanshaw Sales), FL, United States
CMI ORCHARDS LLC., WA, United States
EDIBLE HARVEST FARMS CORP., FL, United States
FRESH 1 PRODUCE (Faisant également affaire sous 15882273 Canada Inc.), QC, Canada
GO GREEN CANADA EXIM LTD., ON, Canada
GOLESTAN MARKET FOOD INC. (Also d/b/a Golestan), BC, Canada
Gujarati Mart (A d/b/a of Bhaveshbhai Limbachiya), AB, Canada
J P MARKET INC. (Also d/b/a J P Market), ON, Canada
LTG GOLDEN HARVEST (A d/b/a of 10996653 Canada Inc.), ON, Canada
MORAINE ESTATE WINERY (A d/b/a of 0831517 B.C. Ltd.), BC, Canada
NEW ORIGIN FRESH TRADE CO. (A d/b/a of 15721091 Canada Inc.), ON, Canada
NISHAN TRANSPORT INC., QC, Canada
PANORAMA PACKING LTD., BC, Canada
SHETUR CORPORATION (Also d/b/a Shetur), ON, Canada
TANGO TRADING INC., BC, Canada
TOM-VER LLC. (Also d/b/a Mexfresh Produce), TX, United States
VÉGISOL INC., QC, Canada
VIVAFRESH IMPORTS INC.(Also d/b/a Vivafresh Imports), ON, Canada
VY ISLAND DISTRIBUTORS, ON, Canada
WIDE OPEN FARMS INC., ON, Canada

To view a complete list of active membersclick here.

DRC Membership Change in Status

As of May 31st, 2024 the following organizations no longer hold a DRC membership:

14130065 CANADA INC., ON, Canada
2714462 ONTARIO INC., ON, Canada
A.J. LANZAROTTA WHOLESALE FRUITS & VEGETABLES LTD., ON, Canada
A5 EXPORT SPA, Región Metropolitana, Chile
AGRICOLA PAMPA BAJA S.A.C, Arequipa, Peru
AGRICOLA PARALELO 38 SA DE CV, Sinaloa, Mexico
AGROTEAM SYSTEMS INC., BC, Canada
ALBORZ VIEW INC., ON, Canada
ALL SEASON FOOD MARKET (A d/b/a of 2755591 Ontario Inc.), ON, Canada
ALLIED NATIONAL IMPORT AND EXPORT LTD., ON, Canada
ARROW INTERNATIONAL COMMERCE INC., ON, Canada
BRADFORD & DISTRICT PRODUCE LTD., ON, Canada
CANDA SIX FORTUNE ENTERPRISE CO. LTD., BC, Canada
COGENT TRANSPORT INC., AB, Canada
DA ZHAN LTD., BC, Canada
EXPORTADORA Y COMERCIALIZADORA CALAFATE SPA, Región Metropolitana, Chile
FRANZCO INTERNATIONAL INC., ON, Canada
INTERNATIONAL GOODS TRADING (A d/b/a of 14393562 Canada Inc.), ON, Canada
K W IMPORT & EXPORT INC., ON, Canada
LES ALIMENTS PALERMO LE ROI DES FRUITS, QC, Canada
MAZT INTERNATIONAL TRADING. LTD., BC, Canada
NIFTY PRODUCE CANADA INC., BC, Canada
PACIFIC BREEZE WINERY LTD, BC, Canada
PACIFICO FOOD DISTRIBUTORS LTD., BC, Canada
PERUVIANO FOODS CANADA (A d/b/a of 2726390 Ontario Inc.), ON, Canada
PI BERRIES S.A., Región Metropolitana, Chile
TAJ INDIAN FOODS (A d/b/a of 1194383 B.C. Ltd.), BC, Canada
TRIDGE CO., LTD., Seoul, South Korea
YASHICA INTERNATIONAL INC., ON, Canada
ZAD PLANET INTERNATIONAL TRADE INC., ON, Canada

To view a complete list of inactive membersclick here.

For details regarding a change in status, don’t hesitate to connect with our Helpdesk.

About the DRC

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e., buy, sell, import, export) unless accepted by the regulations. Today, the DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation, and arbitration services, along with the ability to impose sanctions and disciplinary actions on members who do not conduct business in accordance with the terms of their membership agreement.

To date, the DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court-enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

For more information about memberships, click here or contact our Helpdesk.

Categories
SOLUTIONS

TEN STEPS TO FIGHT FREIGHT FRAUD

Freight fraud is on the rise. Again.

U.S. shippers and receivers of fresh produce are falling victim to the repeated schemes by unprincipled freight brokers. The most common occurrences: you pay the freight broker, but the freight broker skips town and doesn’t pay the carrier; or the freight broker reassigns the job to another broker, who doesn’t pay the carrier, or even worse, steals the load. In the produce industry, where sales are made at lightning speed to keep up with the transportation of highly perishable commodities, by the time the deception is discovered, it’s often too late. The cause may be a broker’s insolvency, negligence, or willful wrongful acts. The effect is the shipper and receiver can suffer loss of the perishable agricultural commodities and are exposed to liability for double payment for the freight charges.

The problem is exacerbated by debt collectors buying up freight claims because they assert they have two pockets for recovery: the shipper and the receiver. These debt collectors or law firms representing them send demand letters citing court cases that seem to support double payment from a shipper. These debt collectors do not care if you’re a shipper who prepaid for the shipment by paying the broker. They hedge bets that you, as a shipper, will double pay for a shipment rather than trouble your customer/receiver for an unpaid freight bill.

Generally, payment of freight charges is the responsibility of the shipper unless otherwise agreed. Freight payment terms are either freight collect (receiver/consignee pays after delivery) or freight prepaid (shipper/consignor pays before shipment).

Older versions of the U.S. Uniform Straight Bill of Lading included a non-recourse provision, which provided a method for a consignor to avoid liability for freight charges on a collect shipment by entering a signature or endorsement in the box containing the provision (“Section 7” of the bill of lading). If the carrier accepted the shipment for carriage, then the carrier did not have recourse against the consignor for the freight charges in the event the consignee did not pay.

The non-recourse provision in the Section 7 box was a safeguard for a shipper because it relieved the shipper/consignor from liability for freight charges on collect shipments, i.e. that the carrier would have “no recourse” against the shipper because the receiver/consignee had primary liability for payment of freight charges on collect shipments. Shippers also used the provision to protect it from liability on “prepaid” shipments for additional freight charges after delivery.

In December 2022, the U.S. National Motor Freight Traffic Association published a revised Uniform Straight Bill of Lading and removed the Section 7 box and non-recourse provision. Instead, the back side of the current Uniform Straight Bill of Lading’s terms and conditions states:

Sec. 7. (a) The consignor, consignee, or shipper shall be liable for the freight and other lawful charges accruing on the shipment, as billed or corrected as specified in 49 U.S.C. §13710, and carrier may require prepayment of the charges prior to delivery and refuse to give up possession at the destination until payment is made, as specified in 49 U.S.C. § 13707(a).

Put simply, the shipper and receiver bear responsibility for the freight charges if the carrier does not receive payment, unless there is a specifically negotiated agreement stating otherwise. Shippers and receivers should use a tailored bill of lading (not the revised Uniform Straight Bill of Lading) making it clear who is responsible for freight payment and to have the carrier waive recourse against the appropriate non-responsible party.

Here are ten steps to fight back against freight fraud in the U.S.:
  1. Verify Broker Credentials: Ensure that the freight broker is properly licensed and registered with the Federal Motor Carrier Safety Administration (FMCSA). You can check their USDOT number and MC number on the FMCSA website here SAFER Web – Company Snapshot (dot.gov).
  2. Require a Bond and Insurance: Verify that the broker has appropriate insurance coverage and bonding. This provides financial protection in case of fraud or negligence. Licensing & Insurance Carrier Search (dot.gov)
  3. Investigate Broker Reputation: Research the broker’s reputation by checking online reviews, asking for references from other clients, and looking for any complaints filed with industry associations (The Blue Book Services) or regulatory bodies (FMCSA website here SAFER Web – Company Snapshot (dot.gov)). In addition, contact your attorney to research litigation history of the broker and other public records databases to verify the identity of the principals and freight broker before you enter into a contract or send any funds.
  4. Use Established Brokers: Work with well-established and reputable brokers with a proven track record of reliability and honesty in the industry.
  5. Have a Robust Contract with Broker: Contact your attorney to prepare a robust broker contract that clearly states the broker’s obligations, with hefty indemnification provisions, insurance requirements, and clear payment terms.
  6. Use a Customized Bill of Lading: Use a well-drafted customized bill of lading that includes terms and conditions that accurately state the payment obligation and that require the carrier to waive recourse against the shipper.
  7. Obtain Documentation: Request and review all necessary documentation for each shipment, including insurance certificates, proof of delivery, and bills of lading.
  8. Monitor Shipments: Keep track of your shipments through tracking systems and regular communication with both the broker and carrier. Promptly address any discrepancies or concerns.
  9. Payment: Consider paying only after confirming delivery of the produce.
  10. Report Suspicious Activity or Theft: If you suspect fraud or encounter any irregularities, report them to the appropriate authorities such as the FMCSA or local law enforcement agencies.

By taking these precautions and staying vigilant, U.S. shippers and consignors can reduce the risk of falling victim to freight broker fraud. Contact your agribusiness attorney to develop strategies and customize contracts and other documents to minimize your risks of freight fraud.


© 2024 – Fennemore, LLP. All rights reserved. The information in this article has been prepared by Fennemore, LLP for informational purposes only and does not constitute legal advice.

This article is republished with permission and was originally written by June Monroe of Fennemore with offices in California, Arizona, Nevada and Colorado.

June Monroe is a director and attorney at the Irvine office of Fennemore, LLP. June practices agricultural law, employment law, commercial law, secured transactions and general business law. She concentrates on federal litigation, in district court and bankruptcy court, to enforce produce suppliers’ statutory rights under the Perishable Agricultural Commodities Act (PACA). June also assists growers, marketers, and shippers with drafting growing, marketing, packing, and supply contracts.

June is the current Chair of the Agribusiness Committee, Business Law Section, of the California Lawyers Association for the State Bar of California.

Outside of work, June is a weekend painter and enjoys painting fruits and vegetables for her agribusiness clients. June posts her artwork on her LinkedIn page: June Monroe | LinkedIn

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Uncategorized

Membership Update for April 2024

New Members List | Membership Change in Status | Automatic Terminations

Welcome new members!

We are pleased to welcome the following 20 new members during the month of April 2024. Here’s a list of who they are: 

1000832035 ONTARIO LTD., ON, Canada
ALINE PACKAGING LTD., BC, Canada
CITRUS SAM INC., ON, Canada
EL CHARRO INC., ON, Canada
FRASER VALLEY FARM MARKET INC., BC, Canada
FRESH VEGETABLES ARE S.A. DE C.V., Puebla, Mexico
FRESHFUSION IMPORT INC., ON, Canada
FROBISHER INTERNATIONAL ENTERPRISE LTD., BC, Canada
GARUDA IMPORTS & EXPORTS (A d/b/a of 11924656 Canada Corp.), ON, Canada
JINXIAN GLOBAL FOOD INC., ON, Canada
KALIGA BAZAAR (A d/b/a of 2704097 Ontario Inc.), ON, Canada
NATUS FOODS LLC (Also d/b/a Born Farms), TX, United States
OPERADORA COMERCIAL DATI S DE RL DE CV, Michoacan, Mexico
POC HOLDINGS CORPORATION (Also d/b/a POC Trading), BC, Canada
R&D INTERNATIONAL FOODS CORPORATION, ON, Canada
SHIVANI SALES INC., MB, Canada
SKOTIDAKIS GOAT FARM (A d/b/a of 1048547 Ontario Inc.), ON, Canada
SOAGRO CORP., ON, Canada
SRT TRADING LTD., BC, Canada
TAAMAY EXPORT MEXICO S.A.P. I DE C.V. (Also d/b/a TAAMAY), Ciudad de Mexico, Mexico

To view a complete list of active members, click here.

DRC Membership Change in Status

As of April 30th, 2024 the following organizations no longer hold a DRC membership:

1595645 ONTARIO INC., ON, Canada
AMIRA ENTERPRISES INC / LES ENTREPRISES AMIRA INC., QC, Canada
AVO INTEGRA SAPI DE CV, Michoacan, Mexico
BEDFORD BASIN FARMERS MARKET LTD., NS, Canada
BIMAL PATEL (Also d/b/a SBimal LLC.), CA, United States
BOKHARY FARMS LLC, MA, United States
CAPPADOCIA IMPORT TURKISH FOOD INC., AB, Canada
CARAVAN TRADERS INC., ON, Canada
FRIEDA’S, INC., CA, United States
GROUPE EDEAN LTÉE, QC, Canada
IMAN-DZ LTEE. (Also d/b/a Dattes HN), QC, Canada
J & J PRODUCE INC. (Also d/b/a J & J Family of Farms), FL, United States
JARDINS ST-LÉON GARDENS INC. (Also d/b/a St-Léon Gardens), MB, Canada
JR FRUITS (A d/b/a of 6735525 Canada Inc), QC, Canada
JUS LOOP INC. (Faisant également affaire sous LOOP Mission), QC, Canada
L.T. ENTERPRISES LTD., NB, Canada
LES FERMES YVON BOYER INC., QC, Canada
LES SAVEURS DU TERROIR, QC, Canada
MARAND COMPANY S.A.C., Lima, Peru
SAFIA FRUITS/FRUITS SAFIA (Faisant également affiare sous 93, QC, Canada
SHAHG TRADERS INC. (Also d/b/a ShahG Traders), ON, Canada
SILVA FARMS LLC., CA, United States
SUN FRESH CITRUS LLC, CA, United States
THE FUTURES EXCHANGE LTD. (Also d/b/a Greenhouse-Garlic), ON, Canada

Automatic Terminations

On April 9, 2024, FRESH EXPRESS LTD. was expelled from DRC for failure to meet their financial obligations and failure to provide requested information in violation of section 1.5 of the DRC Trading Standards and section 3.03 of the DRC By-laws. At the time of expulsion Sayed Farid Sadat (Director) was the only responsibly connected persons to this organization.

For details regarding a change in status, please contact the office.

Important note: Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

For details regarding a change in status, don’t hesitate to connect with our Helpdesk.

To view a complete list of inactive members, click here.

About the DRC

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e., buy, sell, import, export) unless accepted by the regulations. Today, the DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation, and arbitration services, along with the ability to impose sanctions and disciplinary actions on members who do not conduct business in accordance with the terms of their membership agreement.

To date, the DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court-enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

For more information about memberships, click here or contact our Helpdesk.

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Uncategorized

Temperature recording and monitoring of perishable goods for the transport refrigeration industry

Thankfully technology is available by Transport Refrigeration Unit (TRU) manufacturers that can help ensure cold chain quality and integrity of critical perishable cargo.

Current technology can provide on the spot printouts as well as USB downloads of temperature values, set points, date & time stamps along with other informative data pertaining to the operation of the TRU at time of delivery. TRU is also known in the industry as “Reefer”.

More thorough and informative reports are also available and can be reviewed and customized by the reefer manufacturers telematics platform. Reporting within the telematics platform also allows freight carriers to run reports retroactively given a specific time and date of past events.

Definition of telematics:

Telematics is a term that combines the words telecommunications and informatics to describe the use of communications and IT to transmit, store and receive information from devices to remote objects over a network.

Reefer telematics is a remote monitoring system that makes it easier to keep control of your cold cargo, avoid rejected loads by monitoring and recording core cargo temperature in real time. Maintain product quality by reducing reefer unit shutdowns that can lead to lost loads. TRU (reefer) fleet uptime is critical to avoiding lost loads and maintaining revenue.

The remote reefer monitoring and management system allows users to monitor and control the setpoint temperature and modes of operation as well as observe alarm status. It will also allow the operation of pre trip diagnostics remotely. Reefer telematics provide real time cargo traceability and asset monitoring to maximize uptime, optimize fuel usage and meet compliance needs. Using temperature reports and graphs you can prove the trailer was precooled at the time of loading and to the desired temperature. Listed below are some of the benefits of reefer telematics use.

Temperature Compliance: temperature reports and graphs to prove that sensitive cargo was maintained at the desired temperature throughout every point in the journey.

Asset Security: with door sensor data available by telematics, you can record all door openings to keep an eye on temperature and load security.

Cargo Traceability: track shipment location and condition to know instantly when a delay occurs and to proactively manage exceptions.

Asset Location: monitor the current location of your assets at any time to ensure a quick and effective response to any emerging issue.

Vehicle Uptime: eliminating unscheduled breakdowns by means of preventive maintenance equals lower operating cost.

Fuel Usage: maintain visibility to ensure the most fuel-efficient mode is consistently used when running loads.

Example of a Tabular telematic download:

Listed below is the terminology used in the telematic tabular report above.

Date & Time: 15-minute reporting events would trigger extra reporting intervals.
Vehicle Name: Trailer designation
Unit Power: Either on or off
Unit Mode: Cycle sentry stop/start or Continuous run
OP1: High cool, Low cool, Modulation cool, High heat, Low heat, Modulation heat, Defrost, etc.
SP1: Set Point Zone 1 would be a single temperature unit. There could be two other zones as well (Multi-Temp unit).
RA1: Return air temperature zone 1 is most representative of box temperature. There could be two other zones as well (Multi-Temp unit).
DA1: Discharge air temperature zone 1. There could be 2 other zones as well (Multi-Temp unit). Air leaving the unit could be colder or hotter depending on the operating mode.
Ambient Temp: Ambient temperature during travels.
Fuel Level: Most tanks are 50-gallon tanks and will change in 5% increments.
Battery Voltage: Amount of electrical potential a reefer unit uses, measured in volts.
Engine RPM: Most units have two speeds, High and low.
Unit Alarm: Hundreds of different alarms pointing the drivers, dispatchers, and technicians about current issue.
Total Hours: This hour meter will be recording anytime the unit is turned on.
Engine Hours: This hour meter will be recording only when engine is running.

Note:
Single temperature Reefer is 1 temperature zone within the cargo space.
Multi-Temperature Reefer is 2-3 temperature zones within the cargo space.

Example of a telematic Temperature Chart and Graph download

Note:

  • S1, S2, S3, S4, S5, S6 and TL1, TL2, TL3, TL4, TL5, TL6 on this report are unused channels designated for additional temperature sensors and temperature data loggers.

Article provided by:

For more information, contact:

Nicole MacDonald
Communications and Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Email: [email protected]
Ph: +1-613-234-0982

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ATTENTION FOREIGN SUPPLIERS! Here’s how to send fresh produce to Canada as an NRI.

Does your foreign business wish to send fresh produce to Canada? If so, you must go through a licenced Canadian importer or become a non-resident importer (NRI) if your business qualifies. In order to bring fresh produce into Canada, you must obtain a licence under the Safe Food for Canadians Regulations (SFCR) and likely will need a DRC membership.

NRIs EXPLAINED

NRIs are businesses exporting food into Canada from a fixed place of business outside the country. In this case, as we are talking about importing fresh fruits and vegetables (FFV), the only country currently applicable to do this is the United States (US). The reason is that the US mirrors a similar level of protection as the SFCR, making US NRIs eligible to hold a Safe Food for Canadians licence (SFC licence) to import food into Canada. As authorities evaluate more food safety systems, they may add more countries to the list in the future.

HOW TO OBTAIN AN SFC LICENCE AS AN NRI

The first step in obtaining a licence as an NRI is to create an account through the My CFIA website. From there, you’ll have access to a full range of operational and administrative services to ensure a seamless registration process.
Once you obtain your SFC licence number and DRC membership number, you should add these to your import declaration forms to ensure your FFV shipment clears customs and enters the country without any problems.

DRC MEMBERSHIP REQUIRED

The SFCR requires NRIs to hold a DRC membership to send FFV across the border into Canada. The CFIA lists permitted exceptions to this requirement.

It is worth noting that an SFC licence and a DRC membership have different intents. An SFC licence identifies and authorizes businesses to conduct licensable food safety-related activities such as NRIs. A DRC membership requires fair and ethical trading practices that minimize trade irritants and facilitate effective dispute resolution so you can #tradewithconfidence.

As a member of the DRC, you’ll have access to additional services that lower the risk of conflict in a transaction. Click on the link to learn more and how to apply.

RESOURCES

For more information, contact: 

Nicole MacDonald
Communications and Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Email: [email protected]
Ph: +1-613-234-0982

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Uncategorized

Accessing Government Quality / Condition Inspection Reports

According to the Fruit and Vegetable Dispute Resolution Corporation (DRC) Trading Standards and Good Inspection Guidelines, if your fresh produce arrives in a deteriorated condition, the buyer or receiver is responsible for requesting a government inspection to demonstrate the load is in poor condition. Generally, after the inspection, the applicant will receive the inspection report directly from the government agency and is required to share it with the shipper or seller in a timely manner.

In the United States, the United States Department of Agriculture Agricultural Marketing Service offers electronic access to government inspection reports by entering the certificate number and password provided in the inspection report (https://fpbinspections.ams.usda.gov/). However, in Canada, the Canadian Food Inspection Agency Destination Inspection Service (CFIA–DIS) does not offer similar access. To access these government inspection reports, you have to contact the appropriate DIS regional office by email or phone and provide the inspection’s serial number.

Recently, the DRC reported that a member was modifying CFIA inspection reports, which resulted in their expulsion from their DRC membership. Therefore, it is important for our members to be aware that access to a government inspection report is available to other principals in the transaction and not just the applicant.

To facilitate access to CFIA inspection reports, we are currently working with the CFIA to make inspection reports available, like the USDA. This expedited access to inspection reports can validate the information received and help decide if an appeal inspection is necessary.

For more information, contact:

Nicole MacDonald
Communications and Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Email: [email protected]
Ph: +1-613-234-0982

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Membership Update – March 2024

Welcome new members!

We are pleased to welcome the following 16 new members during the month of March 2024: 

ANAVARA LIMITED (Also d/b/a JusFres), BC, Canada
ARONA TRADING, SA., Lima Peru
DA PRODUCE GUYS (A d/b/a of 1710709 Ontario Inc.), ON, Canada
FALCONS GLOBAL CORPORATION, ON, Canada
FRUIT WORLD COMPANY, INC., CA, United States
GOSAL TRUCKING LTD., BC, Canada
GRUPO COMERCIAL CAMPO VERDE SAC (También haciendo negocios como Grupo Campo Verde), Lima, Peru
GUJARATI KITCHEN INC., ON, Canada
HGC (A d/b/a of 1445913 Ontario Inc.), ON, Canada
LIGHT SPEED LOGISTICS INC., AB, Canada
MALLADI HOLDINGS CORP., SK, Canada
MANGO FRESH MARKET LTD. (Also d/b/a Freshest Fruits and Vegetables / Save Way Retail), PE, Canada
OSU TROPICAL MARKET INC., ON, Canada
RIG LOGISTICS INC., AB, Canada
SHERRINGTON TRANSPORT INC., QC, Canada
SHREE SUPERMARKET INC., BC, Canada

To view a complete list of active membersclick here.

DRC Membership: Change in Status

As of March 31, 2024 the following organizations no longer hold a DRC membership:

10621692 CANADA INC., QC, Canada
AGROTRADE CORPORATION CANADA (Also d/b/a Agrotrade), AB, Canada
BEST FRESH PRODUCE INC., BC, Canada
HELLER BROS. PACKING CORP., FL, United States
HOUSE OF AVOCADO INC., ON, Canada
INTERNATURAL MARKETING INC., FL, United States
KAHKASHAN TRANSPORATION INC./ TRANSPORT KAHKASHAN INC., QC, Canada
LENDERS MULTIMEDIA INC., ON, Canada
ONEONTA TRADING CORPORATION, WA, United States
PALMAS WHOLESALE CORP., ON, Canada
ST. DAVID’S HYDROPONICS LTD., ON, Canada

Automatic Terminations:

On March 29, 2024, ALIMENTS KURAS / KURAS FOODS (A d/b/a of 122011 Canada Ltée) was expelled from the DRC for failure to meet their financial obligations and failure to provide requested information in violation of section 1.5 of the DRC Trading Standards and section 3.03 of the DRC By-laws. At the time of expulsion, Sabrina Levesque (President) was the only responsibly connected person to this organization.

Important note:

Following membership termination, the former member remains liable for claims arising prior to their termination if the claim is submitted to DRC by way of a Notice of Dispute within nine (9) months from when the claim arose or within nine (9) months from when the claimant ought reasonably to have known of its existence.

For details regarding a change in status, don’t hesitate to get in touch with the office.

To view a complete list of inactive membersclick here.

About the DRC

The DRC is a non-profit membership-based organization whose core work is business-to-business commercial dispute resolution for produce. The DRC is a referee between parties when a purchase and sale do not go according to plan. Members adhere to a common set of trading standards and member responsibilities that promote fair and ethical trading for produce entering the North American marketplace. In Canada, membership in the DRC is a regulatory requirement to trade fresh fruits and vegetables (i.e., buy, sell, import, export) unless accepted by the regulations. Today, the DRC has members in 16 countries outside of North America, and membership continues to grow annually. Anyone exporting fresh fruits and vegetables to Canada must sell to a DRC member.

In addition to the DRC’s Operating Rules and Trading Standards, the DRC offers a comprehensive, tailored suite of tools to build the knowledge and capacity of members to avoid or resolve disputes. The DRC provides education, mediation, and arbitration services, along with the ability to impose sanctions and disciplinary actions on members who do not conduct business in accordance with the terms of their membership agreement.

To date, the DRC has resolved claims in excess of $105 million dollars. Although arbitration is available, 80% of these claims have been settled in an average of 26 days through our informal consultation/mediation services. Arbitration awards are court-enforceable in countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards or subsequent conventions.

For more information about memberships, click here or contact our Helpdesk.

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Dealing with a Bad Load? Your Options as a Buyer/Receiver Revealed.

As a Free on Board (FOB) buyer/receiver, it is important to understand what actions to take if you receive a product that does not meet the contract terms or DRC’s Good Arrival Guidelines. Additionally, on a FOB transaction, once the carrier picks up the product, the buyer/receiver becomes the owner of the load.

But what if you find that the product is in poor condition during unloading? You have the right to reject the load, but to maintain this right, you must immediately load the product back into the truck and request a government inspection, or if agreed upon, a private inspection.

If the inspection report confirms that the product does not comply with DRC’s Good Arrival Guidelines or contract terms, you have three options: reject the product and return it to the shipper, renegotiate the contract terms, or claim damages if they cannot agree on renegotiating the contract, and rejecting the load is not an option.

What is required when you REJECT a load?

The proper or legal act of rejection requires that you:

  • Do not divert a shipment by sending your product to a different location from the one indicated in the bill of lading (BoL).
  • Do not unload the shipment except for the purpose of inspection.
  • Give your notice of rejection within a reasonable time.

Rejecting a load requires you to follow the procedure indicated in DRC’s Trading Standards – Section 10, which states:

“2. Where a receiver has:

  1. purchased an perishable agricultural commodity that is damaged or in a deteriorated condition, or
  2. offered to handle a perishable agricultural commodity on consignment that is damaged or in a deteriorated condition, he shall:
  1. within 8 working hours, exclusive of Sundays and holidays, after receipt of notice of arrival of the shipment of a perishable agricultural commodity apply for inspection and, within three hours after he has received an oral or a written report of the result of the inspection, advise the shipper or the seller’s local representative in writing that he rejects the perishable agricultural commodity,
  2. within 24 hours of the receipt by him of a certificate in respect of the inspection forward a copy thereof to the shipper of the perishable agricultural commodity,”

What to do when ACCEPTING a load in deteriorated condition?

Remember that the ownership of the load is transferred to the buyer/receiver once the carrier picks up the product. If the inspection report confirms the product has failed to meet DRC Good Arrival Guidelines or contract terms, and you still wish to accept the load, then you can renegotiate the contract terms.

But what if you and the seller cannot agree on a price adjustment? You may negotiate other alternatives such as Repacking, Price After Sale or Consignment terms. However, if no agreement is reached, you can only claim damages.

Claiming damages is a process where the buyer/receiver must salvage the product to the best of its capabilities to minimize the loss. The responsibility is to market the product and make every reasonable effort to sell it at the best possible price and as quickly as possible. From the sales, you can deduct any expenses resulting from the breach of contract, such as freight, inspection costs, brokerage, and any other agreed-upon expenses. The most straightforward way to demonstrate damages is by presenting an account of sales.

Remember that the DRC Trading Standards are a set of rules and guidelines that apply to all transactions made by DRC members. Although members can also have their own Standard Operating Procedure (SOP), it is your responsibility to demonstrate that your clients have discussed, understood, and agreed with your SOP. Protect your business by getting familiar with and understanding the DRC Good Arrival Guidelines and Trading Standards.


For more information, contact:

Nicole MacDonald
Communications and Marketing Specialist
Fruit and Vegetable Dispute Resolution Corporation
Email: [email protected]
Ph: +1-613-234-0982

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