Posts By: Bryan Nickerson
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What You Need To Know When Using The Sales Term “Protection” and Farewell To WG’s Tommy O.
I receive daily inquiries from our shipper-members concerning problems on sales transactions happening on a real-time basis, or after the fact, and the member is endeavoring to arrive at a resolution. On such occasions, the inquiring-caller tells me that a federal inspection for condition and quality was secured at contract destination and he/she has granted ...
Best Practices When Handling a Buyer’s Order Cancellation
The wrath of COVID-19 continues to blur the lines between buyer and seller liabilities, so it is important to know how to properly handle a buyer’s order cancellation. In the last few weeks, I’ve received a handful of phone calls from shippers wanting to know if it is permissible for their buyer(s) to cancel orders ...
WG’s Trade Practices Department – Your One Stop Shop for Contract Compliance
The nexus for this blog in recent years has been focused on providing timely topics and solutions for Western Growers (WG) members, specifically for those individuals who participate or support the sales and marketing of fresh produce and are dealing with the occasional day-to-day challenges. Regular members of Western Growers have the opportunity, and are ...
Trust, but Verify: What Constitutes a Detailed Account of Sale?
Timely and verified rejections of fresh commodities at contract destination do occur, making it very important to know precisely how to handle your next moves. Once a contract has been amended, the seller must know how to hold the handler accountable to ensure they’ve maximized the forwarded net proceeds once all sales are completed. In ...
Responsibility and Risk When Shipping Non-Compatible Commodities
When shipping fresh fruits and vegetables, it is important that the shipper be aware of the compatibility of the commodities being shipped with respect to temperature, relative humidity, and ethylene exposure. This is especially true when you are shipping LTL (less than truckload). An example of a shipment involving non-compatible commodities might be table grapes ...
Top 6 USDA Inspection Clues
A USDA Inspection Certificate is the primary document that certifies the quality and condition of the produce shipped and will definitively establish either compliance or a breach of contract. The USDA certificate is an unbiased third party governmental official determination of the produce at contract destination and is considered prima facie evidence in a potential ...
Get in the Know on PAS Sales Terms
Whether you are establishing a sale or amending a sales contract, here are some helpful reminders to be aware of when using PAS (Price after Sale) sales terms. Afterall, PAS (also referred to as open price sale or open sale) does not establish a consignment or an agency relationship. With everything already agreed to but ...
Calculating Provable Damages to Maximize Returns
When a buyer is entitled to keep product but is unwilling to renegotiate the original sales price with you on a shipment that has “failed to meet contract specifications at contract destination,” how do you determine what the adjusted price should be? What if there is no meeting of the minds on an equitable settlement ...
Recording of OTIF Best Practices Webinar Now Available
Yesterday, Western Growers Trade Practices hosted a webinar to not only discuss the finer points of Walmart’s On Time in Full (OTIF) policy but also some proven shipper best practices to help members cope with retailer compliance requirements and avoid financial penalties. OTIF is now the direction retailers are going, and all suppliers need to ...
Walmart’s OTIF Policy – Shipper Feedback Request
Fresh produce shippers are used to dealing with unique retailer demands getting their product to market. One such challenge, first introduced by Walmart U.S. in 2017, is the retail giant’s on-time in-full (OTIF) policy. As the name indicates, this logistics compliance program requires product to arrive at Walmart’s distribution centers on time and in full. ...
In or Out with Defects
Shippers often call me to discuss the results of their timely USDA inspection and for help determining if it meets contract specifications. There are two distinct types of defects listed on the inspection that can help you determine that. When reading a USDA inspection certificate, the inspector will list two types…
Perfecting Your Arrival Inspection Checklist
Several Western Growers members recently asked me for a checklist of questions to ask when product arrives at contract destination when there has been a federal inspection secured. In other words, can we provide a guidance document to the sales staff to ask the correct questions and determine, with accuracy, liability under the terms of the ...
Shipper Steps to Take When Verifying a Potential Rejection
As a shipper, it is prudent to fully understand both your contractual obligations and your rights when handling a potential rejection. A shipment cannot be deemed rejected if it is either: Unloaded (except for the purpose of inspection); or Unilaterally diverted during transit Under PACA law, both such actions constitute acts of acceptance. For proper ...
A Shipper’s Formula When Manifest Doesn’t Match USDA or CFIA Inspection
Let’s say that a shipper’s produce arrives at contract destination and then the buyer immediately ships out a portion of that load to their customer before requesting a USDA or CFIA inspection. When the federal inspector arrives at the buyer’s facility, they inspect the remaining cartons of produce. How would the Perishable Agricultural Commodities Act ...
How To Make More Informed Credit Decisions
I would like to share a valuable opportunity for shippers to consider which supports industry commerce and will help your company make the most informed “sell or no sell” business decisions by joining Blue Book’s Accounts Receivable (A/R) Contributor Program. Hundreds of companies serving the produce supply chain already confidentially submit their monthly A/R…
Feb. 24 Virtual Event to Preview Oakland “Pop-Up” Container Yard
In association with the USDA, CDFA, GO-Biz and CalSTA, the Port of Oakland is hosting a virtual information session on Feb. 24, 2022 at 10 a.m. PT on the new, temporary “pop-up” container yard that will ease congestion and add agricultural export capacity in Oakland. Shippers, forwarders and truckers can ask operational questions about the ...
Protecting Shipper’s PACA Trust Rights When Invoicing by EDI
Some retail and food service customers may require Electronic Data Interchange (EDI) invoicing and reconciliations of settlements to automate the purchase order process. EDI is simply a standard electronic format that replaces paper-based documents such as purchase orders or invoices. When invoicing via EDI, it is critical that you have the PACA Trust language on ...
PACA Retention of Documents
Shippers often ask how long do they need to retain records before they can be destroyed? The California Department of Food and Agriculture (CDFA), Market Enforcement Branch and the Perishable Agricultural Commodities Act (PACA) both require specific record keeping requirements under their respective regulations. The PACA requires documents to be maintained for a period of two…
Port of Oakland – Webinar for USDA “Pop Up” Container Program
The U.S. Department of Agriculture (USDA) issued some record-breaking export numbers for the month of February, but for many shippers trying to move their ag products through the Ports of Oakland and Los Angeles, frustrations still persist. According to a Port of Oakland press release, the Port says it’s working with the USDA to clear bottlenecks ...
Trade Practices: Protecting Your PACA Trust Rights In a Pandemic
Recently, a California grower-shipper sent me a copy of a March invoice for a properly executed transaction on which the wholesale buyer had written “P.O. canceled due to COVID-19.” The amount of the invoice was less than $650 for 35 cartons of three specialty items, seemingly destined for foodservice consumption. The reaction by the buyer ...