• TABLE OF CONTENTS
HIDE
 Front Cover
 Abstract
 Acknowledgement
 Table of Contents
 Introduction
 Data
 Shipment characteristics
 Transportation characteristics
 Summary
 Recommendations
 Footnotes
 Reference














Group Title: Economics report - University of Florida Agricultural Experiment Station ; 115
Title: Florida ornamentals--shipping origins and destinations and characteristics of transportation
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
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Permanent Link: http://ufdc.ufl.edu/UF00027500/00001
 Material Information
Title: Florida ornamentals--shipping origins and destinations and characteristics of transportation
Series Title: Economics report
Physical Description: iii, 44 p. : ill., maps ; 28 cm.
Language: English
Creator: Rahmani, Mohammad
Beilock, Richard
Strain, J. Robert
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Agricultural Experiment Station, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Publication Date: 1987
 Subjects
Subject: Ornamental plant industry -- Florida   ( lcsh )
Plants, Ornamental -- Transportation   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
bibliography   ( marcgt )
non-fiction   ( marcgt )
 Notes
Bibliography: Bibliography: p. 42-44.
Statement of Responsibility: Mohammed Rahmani, Richard Beilock, J. Robert Strain.
General Note: Cover title.
General Note: "September 1987."
 Record Information
Bibliographic ID: UF00027500
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001610122
oclc - 18173988
notis - AHN4478

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Page i
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
    Introduction
        Page 1
        Page 2
    Data
        Page 3
        Page 4
    Shipment characteristics
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
    Transportation characteristics
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
    Summary
        Page 37
        Page 38
    Recommendations
        Page 39
    Footnotes
        Page 40
        Page 41
    Reference
        Page 42
        Page 43
        Page 44
Full Text


SEPTEMBER 1987
11\-


ECONOMICS REPORT 115


FLORIDA ORNAMENTALS:
SHIPPING ORIGINS AND
DESTINATIONS AND
CHARACTERISTICS OF
TRANSPORTATION


Central Science
Libr -r'
PPR 12 199,


Ur.rsij of


Food and Resource Economics Department
Agricultural Experiment Station
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


Mohammed Rahmani
Richard Beilock
J. Robert Strain


Flo/ '.i











ABSTRACT


Data for 1981 and 1984 covering virtually every truck shipment of

ornamental plants out of Florida provided the basis of this report. The

data were collected by the Florida Department of Agriculture and Consumer

Services at their agricultural inspection stations. Between 1981 and 1984,

the volume of product increased 73 percent. Foliage accounted for nearly

two-thirds of all shipments. Shipments follow distinct seasonal swings,

with April being the peak month. Approximately two-thirds of all Florida

ornamentals are delivered to states east of the Mississippi River.

Carriers were classified as occasional carriers (making less than 50 trips

a year) and specialized carriers. Carriers specializing in transportation

of ornamentals tend to use larger vehicles, have longer hauls, and make

multiple drops. Distinct weekly shipping patterns appeared with Monday

being the lightest and Saturday the highest. The level of concentration in

the ornamentals transportation industry appeared to be moderate.

Key Words: Florida ornamentals, exempt transport





ACKNOWLEDGEMENTS



This study would not have been possible without the cooperation of the

Florida Department of Agriculture. The authors recognize the helpful

comments of Leo Polopolus and Emerson Babb. The authors are responsible

for any remaining inaccuracies.











ABSTRACT


Data for 1981 and 1984 covering virtually every truck shipment of

ornamental plants out of Florida provided the basis of this report. The

data were collected by the Florida Department of Agriculture and Consumer

Services at their agricultural inspection stations. Between 1981 and 1984,

the volume of product increased 73 percent. Foliage accounted for nearly

two-thirds of all shipments. Shipments follow distinct seasonal swings,

with April being the peak month. Approximately two-thirds of all Florida

ornamentals are delivered to states east of the Mississippi River.

Carriers were classified as occasional carriers (making less than 50 trips

a year) and specialized carriers. Carriers specializing in transportation

of ornamentals tend to use larger vehicles, have longer hauls, and make

multiple drops. Distinct weekly shipping patterns appeared with Monday

being the lightest and Saturday the highest. The level of concentration in

the ornamentals transportation industry appeared to be moderate.

Key Words: Florida ornamentals, exempt transport





ACKNOWLEDGEMENTS



This study would not have been possible without the cooperation of the

Florida Department of Agriculture. The authors recognize the helpful

comments of Leo Polopolus and Emerson Babb. The authors are responsible

for any remaining inaccuracies.











TABLE OF CONTENTS

Page

ABSTRACT ................ ........ ... i
ACKNOWLEDGEMENTS . . . . . . i
LIST OF TABLES. .... . . .. . ....... i
LIST OF FIGURES. . . . . . ... iii

INTRODUCTION . . . ..... ... . 1
DATA . . . . .. . . . 3
SHIPMENT CHARACTERISTICS. .. . . . . 5
Volume and Type . . . . . 5
Seasonal Variations in Shipments. . . . . 8
Seasonal Variations by Plant Type . . . .. .10
Loading Zones Within Florida .. . . . 10
Destinations. . ..... . . .. . 13
Destination by Type of Plant. . . . .. ... 19

TRANSPORTATION CHARACTERISTICS .. . . . .. 22
Is Ornamental Transport Special . . . .. 22
Carrier Types . . . .. . . 23
Industry Concentration. . .. . . . .. 27
Vehicle Sizes . . ... .... . . 29
Weekly Pattern of Truck Passings. . . .. . 33

SUMMARY . .. . . . . . . 37
RECOMMENDATIONS. . . .. . . . . 39
FOOTNOTES. . . . . . . . 41
REFERENCES ... . . . . . . 43


LIST OF TABLES
Number Page

1. Cash receipts for greenhouse and nursery commodities in three
leading states--California, Florida and Texas from 1980 to
1984 in 1,000 dollars . . . . . 2

2. Truckload equivalents of ornamental shipments by type of plants
from Florida in 1981 and 1984 . . . .. 6

3. Truckload equivalents of ornamental shipments by regions within
Florida in 1984 .... . . .. .. 14

4. Truckload equivalents of Florida ornamental plants shipments to
regions by types of plants in 1984. .. . . .. 18

5. Concentration measures for ornamentals transport in 1984. ... 28

6. Ornamental truck passing by size of vehicles and distance in
1984 . . . . . . . 31













LIST OF FIGURES


Number

1. Florida ornamentals shipments in 1984 . . .

2. Florida ornamental shipments in 1981. . . .

3. Annual patterns of shipments for ornamental and
produce in 1984 . . . . . .

4. Patterns of annual shipments for cut fern and
green, bedding plants and landscape plants in 1984. .

5. Pattern of annual shipments for foliage plants,
potted flowers and mixed plants in 1984 . . .

6. Loading zones for ornamental plants within Florida in 1984.

7. Florida ornamental shipments by regions in 1984
(truckload equivalent). . . . . .

8. Ornamental shipments from zones within Florida by
month in 1984 . . . . . .

9. Destination regions of Florida ornamental shipments in 1984

10. Deliveries of Florida ornamental shipments to northern and
southern regions in 1984. . . . .

11. Truckload rates for ornamentals and produce
1982 through 1986 . . . . . .

12. Truck passing of Florida ornamental shipments by
carrier types and distance in 1984 . . .

13. Truck size and trip distance comparisons of Florida
ornamentals in 1984 . . . . .

14. Average weekly pattern of Florida ornamental shipments
in 1984 . . . . . . .

15. Weekly pattern of Florida ornamental shipments by distance
in 1984 . . . . . . .


Page

7

7











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. 15



. 16



. 17

. 20



. 21



. 24



. 26
. 7





S. 34



. 35
. 11



. 12

. 15









. 20



. 21



. 24



. 26



. 32



. 34



. 35

















FLORIDA ORNAMENTALS:
SHIPPING ORIGINS AND DESTINATIONS
AND CHARACTERISTICS OF TRANSPORTATION



by

Mohammed Rahmani
Richard Bellock'
Robert Strain



INTRODUCTION

In 1984 the Florida, ornamentals industry [foliage plants, cut foliage

(ferns & greens), landscape plants, bedding plants, and potted flowering

plants] ranked second only to citrus in terms of total agricultural

revenue. In 1984, ornamentals accounted for 16.4 percent of cash receipts

from all Florida agricultural enterprises.(U.S.D.A. 1985a). While

Florida's foliage plant industry is the largest in the nation, Florida's

ornamentals industry is the second largest in the country: California's is

first. Finally, Florida ornamentals is among the fastest growing in the

nation. Between 1980 and 1984 the value of ornamentals produced in Florida

more than doubled (Table 1).

Despite its importance, little information on marketing and

distribution of ornamentals is available. This impedes planning by

industry participants and policymakers. To maximize returns from their

endeavors, wholesale growers, brokers, and transporters need to be able to

gauge the scope and condition of existing markets. For example, without












Table 1. Cash receipts for greenhouse and nursery commodities in three
leading states--California, Florida and Texas from 1980 to 1984
in 1,000 dollars.
Year
State 1980 1981 1982 1983 1984


California
Value 890,000 962,000 943,000 1,017,459 1,244,520
% of commodities 6.6 7.1 6.5 7.8 8.8
within state

Florida
Value 339,095 490,000 555,000 650,267 750,520
% of commodities 8.9 11.3 12.8 14.1 15.4
within state

Texas
Value 176,000 333,000 260,000 333,000 361,000
% of commodities 2.0 3.7 2.9 3.7 3.7
within state


Source: USDA,ERS 1981, 1985,


and 1986a








3

information regarding the distribution of shipments for the industry, it

may be difficult for an individual producer to identify potential market

areas for its products. To an individual producer, the third most

important ornamentals producing state, Texas might, appear to be a poor

market for Florida ornamentals. Yet in 1984 Texas was the most important

destination market for Florida ornamentals, accounting for 11 percent of

all interstate shipments.

The objective of this report is to present information regarding the

destination and timing of ornamental shipments, and information on the

characteristics of the transportation system. In the second section the

data employed in the study are briefly described. In the third section

shipment areas are determined by examining origin points for ornamentals

shipments. Destination areas are also examined. Finally, seasonal

fluctuations and differences in these across plant types are also

addressed. The next section is devoted to an analysis of the

transportation system, including carrier types, concentration levels,

vehicle sizes, and weekly shipment patterns. In the final section the

results are summarized and recommendations are made for continued analysis

and monitoring of the industry.



DATA

The data used in this study consist of information on every shipment

by truck from the Florida Peninsula. It was collected by the Florida

Department of Agriculture and Consumer Services at their Florida

Agricultural Inspection Stations. These facilities are arrayed in an arc

across the northern part of the Peninsula. They are open at all times and










4

cover every possible routings out of the Peninsula.1 All trucks, vans, and

vehicles with trailers are required to stop. As virtually all ornamentals

are carried by truck, the data gives an essentially complete picture of

shipments from the Peninsula. The Florida Panhandle is of relatively minor

importance in terms of ornamentals production. Therefore, these data also

may be viewed as accurate, for all practical purposes, for the State as a

whole. For each truck or van carrying ornamentals, information was

collected on the following:

1. carrier firm name

2. types and amounts of ornamentals

3. origin and destination

4. number of drops

5. vehicle size.

In addition, the date of the observation was noted.

The data employed in this study are for 1981 and 1984. The numbers of

observations in each year were 22,861 and 38,239, respectively. Unless

otherwise noted, the discussion in this report will focus on the 1984 data.

References to 1981 will be made primarily to point up differences between

the years. The data are unusually complete, but it is regrettable that the

most recent data available are about three years old. The age of this

information is particularly serious given the industry's high growth rate.

It is most important to have up-to-date information when conditions are

rapidly changing in order to be able to make appropriate adjustments.

Indeed one of the principal recommendations of this report will be that

efforts be initiated to develop and maintain more current reports.









5

SHIPMENT CHARACTERISTICS

In this section, the origins of Florida ornamentals shipments and the

subsequent destination markets are examined.


Volume and Type

To prevent product damage, ornamentals generally are not packed

tightly together. Branches and leaves of plants are given space to be

fully extended or, at most, plants are loosely tied. Therefore, ornamental

loads are not very dense. Shipments are measured in volume rather than

weight. The shipment was assumed to be equivalent to the cubic capacity of

the vehicle. Thus if a driver reported that he/she had a full load, the

shipments was assumed to be equivalent to the cubic capacity of the

vehicle. Similarily, if the driver indicated that the vehicle was not full

(only 5 percent were not full)2 it was assumed that the volume was equal to

two thirds the cubic capacity of the truck. "Truckload" was adopted as a

standard unit of volume. A "Truckload" is the equivalent of the volume of

a 45 foot long trailer.

Five types of ornamentals were identified: foliage, cut ferns &

greens, landscape plants, potted flowers, and bedding plants. In the 1981

data, foliage and cut ferns & greens were combined. For loads with more

than one type of ornamental a mixed category is also specified.

In Table 2 and Figure 1 and Figure 2 are presented the volumes of

Florida ornamental shipments in 1981 and 1984. In 1981 there were 18,356

truckloads versus 31,689 in 1984, a 73 percent growth in just three years.

With roughly two thirds of the total volume, foliage is clearly the

predominant ornamentals type. Foliage is followed distantly by cut ferns &

greens and landscape plants.











Table 2. Truckload equivalents of ornamental shipments by types
from Florida in 1981 and 1984.


of plants


1981 1984
Truckload Truckload
Types of plants equivalent Percentage equivalent Percentage

Foliage plants 16,295 88.77 21,110 66.96

Cut fern &
landscape plants incl above incl above 6.171 19.4
Combined 16,295 88.77 27,391 86.36

Landscape plants 871 4.75 2,197 6.92

Mix plants 550 3.00 1,144 3.61

Potted flower plants 437 2.38 840 2.65

Bedding plants 93 0.51 115 0.36

TOTAL 18,3562 100 31,689 100

Notes: 1. In 1981 Cut Fern and Green were included with foliage plants.
2. In 1981, 973 Truckload Equivalents were not identified by the
plant types, and are not included in this total.







30
28 -
26
24
22

S.2


14
j 12
10
8 -^


2 *




FOUAGE PL LANDSCAPE PL MI PFL. POTTED FL KEDDCNG PL
TYPE OF PLANTS
FOUAGE PLANT We CUT FERN & RWEEN

FIGURE 1: FLORIDA ORNAMENTAL SHIPMENTS IN 1984




2B -
2e -
24 -
22 -
20 -
18 -

i

2It
03 514 -
t 12
10

a

4
2
8-





FOLUAGE.PT.CUT LANDSCAPE PL MIX PL. POTTED FL BEDDING PL
TYPE OF PLANTS

FIGURE 2: FLORIDA ORNAMENTAL SHIPMENTS IN 1981










8

In a statistical sense, the differences between the distributions of

the plant types between 1981 and 1984 are highly significant (the estimated

chi square equals 122). The major changes are a reduction in the combined

Foliage/Cut Greens & Ferns category from 89 to 86 percent from 1981 to 1984

and an increase from 5 to 7 percent in the share of Landscape Plants. With

data from only two years, it would be rash to assume that these changes

constitute a trend. This is particularly true due to the change in

categorization schemes between the two years. It is possible that some of

what in 1981 would have been recorded as Foliage/Cut Ferns & Greens, in

1984 was recorded as Landscape Plants.



Seasonal Variations in Shipments

Despite the use of sheltered growing areas, there are seasonal swings

in ornamentals shipments. No doubt this is due to a combination of

climatic factors in Florida versus competing growing areas, and demand

variations in consuming areas. The relative importance of these factors,

however, is not known. In 1984, monthly shipment levels averaged 3,183

truckloads. In the beginning of the year shipment levels rose from around

2,600 truckloads per month in January to the annual peak of 4,200

truckloads in April. Thereafter, shipment levels gradually fell to just

under 3,000 truckloads in July, recover through the late summer to around

3,200 truckloads in September, and finally decline to the annual low of

just over 2,000 truckloads in December (Figure 3). A similar pattern was

evident in the 1981 data.

Compared to many nonagricultural commodities, the seasonal variations

in ornamentals shipment levels are pronounced. However, relative to













260

240 -

220 -

200

180 -

0160 -

140 -
w t o
S120 -












Jon feb Mor April Moy June July Aug Sept Oct Nov Dwe


D PRODUCE + ORNAMENTALS


FIGURE 3; ANNArL PATTERNS OF SHIPMENTS FOR ORNAMIr NTL AND
PRODUCE IN 198-
80

C 60

0 40

20


Jon Feb Mar April May June July Aug Sept Oct Nov Dec

MONTH
C PRODUCE + ORNAMENTALS


FIGURE 3: ANNUAL PATTERNS OF SHIPMENTS FOR ORNAMENTAL AND

PRODUCE IN 1984









10

produce shipments out of the state, ornamentals shipment levels are quite

stable (Figure 3). The coefficients of variation3 for monthly ornamentals

and produce shipments are, respectively, .19 and .70. On average,

variations in produce shipments are over four and a half times those of

ornamentals.4 However, in the months of July, August and September, there

is actually a higher volume of ornamentals than produce shipments.



Seasonal Variations by Plant Type

In Figures 4 and 5 the seasonal shipment patterns of each plant type

are presented. As might be expected, there are considerable differences

across the types, though all have a peak in or around April and several

have another peak in or around September. Judging by their coefficients of

variation, Bedding Plants exhibit the most variation and Mixed Plants and

Cut Ferns & Greens exhibit the least:

Plant Type Coefficient of Variation

Bedding Plants .67
Potted Flowers .45
Landscape Plants .38
Foliage Plants .19
Mixed .16
Cut Ferns, Greens & Cut Foliage .16
All Ornamentals .19



Loading Zones within Florida

Shipment origin or loading zones were determined by examining the

origin points for the interstate movements. Origin zones probably

correspond to production zones in Florida, assuming, of course, that

products are not transported long distances within the state prior to being















230 -
220 -
210 -
200 -
190
180 -
170 -
160 -

0
150 -
w 140 -
130 -
1 20 -
I110 -
0 100 -
90
I so -
80 -


50 -
40 -


Jan Feb Mar April May June July Aug Sept Oct Nov Doe
Month
0 CUT FOLIAGE + BEDDING PLANTS
o LANDSCAPE PULNIS
FIGURE 4: PATTERN OF ANNUAL SHIPMENTS FOR CUT FERN & GREEN,

BEDDING PLANTS AND LANDSCAPE PLANTS IN 1984

















90 -
180 -
170 -
160 -
150 -
C 140 -
k 130 -

k120 -
1 10 -


90
soI
10



60
50


Jan Feb Mar April May June July Aug Sept Oct Nov Dec
MONTH
0 FOLIAGE PLANTS + POTTED FLOWER
O MIXED PLANTS

FIGURE 5: PATTERN OF ANNUAL SHIPMENTS FOR FOLIAGE PLANTS,
POTTED FLOWERS AND MIXED PLANTS IN 1984









13

loaded onto the vehicle that performs the interstate haul. It is believed

that this assumption is accurate for almost all cases.

Ornamentals were loaded from over 200 points in the Peninsula. These

points were grouped into three loading zones: Northern, Middle, and

Southern (Figure 6).

The truckload equivalents by zone and plant type are presented in

Table 3 and Figure 7. In terms of total shipments, the Middle and Southern

Zones are almost identical, 46.9 and 47.3 percent, respectively. With less

than 6 percent of the total shipments, the Northern Zone is of relatively

minor importance. However, with respect to Landscape Plants, the Northern

Zone predominates, accounting for over 60 percent (Table 3). It seems

probable that this is due to greater tolerance to cold temperatures by

plants in this category. The Middle Zone accounts for over 60 percent of

Mixed Plants. It may be that this is due to consolidation for interstate

transport of different plant types from the Southern and the Middle Zones

at terminals located in the Middle Zone. For the other categories of

plants, the Northern Zone is a minor supplier, with the Middle and Southern

Zones supplying nearly equal amounts. The shares supplied by the three

zones is surprisingly constant across the year (Figure 8). This reflects

the fact that by using a combination of sheltered and unsheltered growing

areas, the growers in each area are able to supply their markets throughout

the year.



Destinations

In this subsection the areas to which Florida ornamentals are shipped

will be detailed. To facilitate this discussion eight regions were












Table 3. Truckload equivalents of
Florida in 1984.


ornamental shipments by regions within


Regions
Southern Middle Northern Total
Type of Plants zone zone zone


Foliage plants 8526.1 9976.6 462.6 18965.3
(45.0) (52.6) (2.4) (100)

Cut fern and greens 3817.9 2234.3 15.6 6067.8
(62.9) (36.8) (0.3) (100)

Landscape plants 385.9 260.6 1111.6 1758.1
(22.0) (14.8) (63.2) (100)

Mix plants 415.6 673.2 17.3 1107
(37.6) (60.8) (1.6) (100)

Potted flower plants 385.9 290.8 43.2 719.9
(53.6) (40.4) (6.0) (100)

Bedding plants 41.9 36.5 8.1 86.5
(48.4) (42.2) (9.4) (100)

TOTAL No. 13574.2 13472.0 1658.4 28704.6
% (47.3) (46.9) (5.8) (100)


1984,


Notes: 1. Row Percentages in parentheses.
2. Data include loading points with more than 100 loads in
which account for more than 90 percent of all loadings.









FIGURE 6: LOADING ZONES FOR ORNAMENTAL PLANTS WITHIN FLORIDA

IN 1984


Northern Zone


Middle Zone


Southern Zone


.b '0

















(TRUCKlOAD EQUIVALENT)





80


70



50-








2D
50








FOLIAGE CUT FOULAGLANDSCAPE PL MIX PL. POTTED FLOWER BEDDING PL.
IJ SOUwIH M MIDDLE M NORTH


FIGURE 7: FLORIDA ORNAMENTAL SHIPMENTS BY REGIONS IN 1984



















50 -



40 -







2D



10
20



0 t-Ii t.... |' -'- i I- I -I -"
Jon Feb Mar April May June July Aug Sept Oct Nov Dec

MONTH
FIGURE 8: ORNAMENTAL SHIPMENTS FROM ZONES WITHIN FLORIDA

BY MONTH IN 1984











Table 4. Truckload Equivalents of Florida Ornamental Plant Shipments to
Regions by Types of Plants in 1984.
Types of Plants


Cut Fern
Foliage and
Regions Plants Greens


Land-
scape
Plants


Potted
Mix Flower
Plants Plants


Total
Bedding number
Plants (%)


5143.2 1227.6 1198.4 356.5 292.2 58.3
(24.2) (19.9) (54.5) (31.1) (34.8) (50.5)


4111.8 1840.8
(19.4) (29.8)

4024.4 1164.4
(19.0) (18.9)

1698.4 436.5
(8.0) (7.1)

3920.4 757.8
(18.5) (12.3)

947.0 369.6
(4.5) (6.0)


539.9
(1.7)


61.8
(1.0)


917.9 265.9
(4.3) (4.4)


97.7
(0.5)


46.9
(0.8)


190.8 176.9 235.5 28.6 6584.4
(8.7) (15.5) (28.0) (24.8) (20.8)


67.5 202.8 102.5
(3.1) (17.7) (12.2)


36.9 78.2
(1.7) (6.8)


35.4
(4.2)


534.6 195.8 106.7
(24.3) (17.1) (12.7)


116.3 50.8
(5.3) (4.4)


25.3
(3.0)


12.7 18.3 4.5
(0.6) (1.6) (0.54)


31.0 57.3
(1.4) (5.0)

8.9 8.0
(0.4) (0.7)


36.1
(4.3)

2.0
(0.2)


8.1 5569.8
(7.0) (17.6)

2.0 2287.3
(1.7) (7.2)

7.2 5522.5
(6.2) (17.4)

1.0 1510.0
(0.9) (4.8)

0 457.3
(0.0) (1.4)

9.1 1317.3
(7.9) (4.2)

1.0 164.5
(0.9) (0.5)


6171.3 2197.1 1144.5
(100) (100) (100)


840.3 115.4 31889.3
(100) (100) (100)


Southeast


8276.3
(26.1)


Northeast


Lake
States

North
Plains

South
Plains

Farwest


Northwest


Canada


Others


TOTAL NO.
%


21220.7
(100)








19

specified. The continental United States is divided into seven regions,

and the eighth region is Canada (Figure 9). In Table 4 shipments by region

and plant type are presented. The three eastern most regions (the

Southeast, Northeast, and Lake States) together account for 65 percent of

all deliveries. Of the remaining regions, the South Plains, with 17

percent of all deliveries, is the most important. Within this region Texas

is the dominant receiver with 11 percent of all deliveries. Indeed, Texas

is the most important receiver state or province (number two is Georgia,

just under 11 percent, and number three is New York, 6 percent). The

remaining four regions (the North Plains, Far West, Northwest, and Canada)

together account for 18 percent of all deliveries.



Destination by Type of Plant

There are considerable variations across the plant types with respect

to destination regions. It is believed by the authors that these are due

primarily to climatic differences across the regions that would affect

plants that are typically kept out-of-doors after delivery, but not those

that are usually displayed inside. To explore this hypothesis, two

destination areas, NORTH and SOUTH, were created by combining the five

northernmost regions (the Northeast, Lake States, North Plains, Northwest,

and Canada) and the three southernmost regions (the Southeast, South

Plains, and Far West). Other things being equal, a larger proportion of a

plant type would be expected to be delivered to the NORTH if plants in that

type are customarily displayed indoors and visa versa. Indeed, this

appears to be the case (Figure 10). The two plant types with the highest

percentages going to the NORTH, Cut Foliage (Ferns & Greens) (61 percent)










FIGURE 9: DESTINATION REGIONS OF FLORIDA ORNAMENTAL SHIPMENTS
IN 1984

Canada












































BEDDING LANDSCAPE


FOLIAGE


POTTED FL MIXED


ALL PLANTS .


IJ NORTHERN REGION


FIGURE 10: DELIVERIES OF FLORIDA
NORTHERN AND SOUTHERN


PLANT TPE
7~ SOUTHERN REGION

ORNAMENTAL SHIPMENTS TO
REGIONS IN 1984


-I


0 1


60-


50-


40 -


CUT FOL


I _I










22

and Foliage (52 percent) are displayed primarily indoors. The two with the

lowest percentages going to the NORTH, Landscape Plants (16 percent) and

Bedding Plants (41 percent), are displayed primarily out-of-doors. The

remaining types, Mixed Plants and Potted Plants, may be displayed either in

or out-of-doors.





TRANSPORTATION CHARACTERISTICS

In this section, the industry structure, types of equipment used, and

the weekly pattern of deliveries by the motor carriers serving the Florida

ornamentals industry are briefly examined. It should be noted that only

negligible quantities of ornamentals are shipped by air or rail.



Is Ornamentals Transport Special?

It was previously noted that the number of truckloads of produce

shipped out of the state is over four and a half times greater than for

ornamentals. The large majority of both produce and ornamentals are

transported in the same type of equipment, refrigerated tractor-trailers.

Moreover, it is known that some carriers will carry both produce and

ornamentals (though not in mixed produce/ornamentals loads). The question

arises, therefore, if ornamentals transport is a distinct industry or

market. That is, it may be more appropriate to view ornamentals transport

as a part of the industry serving produce.

There are two principal reasons for suspecting that ornamentals

transport is distinct from produce transport. First, ornamentals often

require special racks or shelving that are not used for produce. Second,









23

individual shipment sizes for ornamentals are generally much smaller than

for produce. To accommodate these smaller shipment sizes, several carriers

specializing in ornamentals maintain small vehicles for local pickups and

facilities to assemble shipments into truckload lots for interstate

movements. This assembly system is absent from produce transport in

Florida.5 However, the acid test to determine if ornamentals and produce

transport constitute different markets is an examination of movements over

time in their freight rates. If ornamentals and produce freight rates are

highly correlated, then it can be assumed that they are for essentially the

same services) and vice versa (Stigler and Sherwin). The empirical

evidence strongly indicates that these are separate transportation markets.

In Figure 11 freight rates for ornamentals and produce shipped from Florida

between November 1982 and May 1986 are presented.6 Rates for ornamentals

range from 95 to 169 percent of those for produce. For six of the twelve

intraseason rate changes ornamentals and produce rates moved in opposite

directions, and their correlation coefficient was only .096.



Carrier Types

For the purposes of the analysis, carriers are grouped into two

categories according to the number of times in 1984 that a truck from that

firm left the Peninsula with ornamentals (truck passings:

Specialized Carriers with 50 or more ornamentals truck passing per
year

Occasional Carriers with 1 to 49 ornamentals truck passing per
year.

Fifty-three firms were identified as Specialized and 7,426 as Occasional.

The two carrier types accounted for 46 and 54 percent, respectively, of all















2.1

2

1.9 -







t.7 -IA




1.3 -

1.2





NB2 J83 MR83MY83 NB3 J84 MR84MY84 NB4 J85 MR85MY85 NB5 J86 MR86MY86
Month ond Yeor
0 PRODUCE + ORME'NTALS

FIGURE 11i TRUCKLOAD RATES FOR ORNAMENTAS AND PRODUCE
1982 THROUGH 1986









25

of the truck passing. Specialized carriers tend to utilize larger trucks;

they accounted for 51 percent of the truckload equivalents (the average

capacities of Specialized and Occasional carrier vehicles were 2,907 and

2,217 cubic feet, respectively).

Occasional carriers tend to be utilized for shorter distance

movements. The average origin-to-destination distance for an Occasional

carrier was 919 miles, versus 1,094 for Specialized carriers. If the

percent of truck passing by the carrier types is plotted against distance,

the share for Occasional carriers falls continuously with greater distance.

Beyond 1100 miles Specialized carriers account for the bulk of the truck

passing (Figure 12).

Another difference between the carrier types is that Specialized

carriers were more likely than Occasional carriers to have loads requiring

multiple drops (71 versus 41 percent, respectively). This is not

surprising as Specialized carriers maintain facilities specifically for the

assembly of multiple shipment (hence, multiple drop) loads. With respect

to other sectors of motor carriage, there have been concerns regarding the

possibility of multiple drop trucking (known as LTL, for less-than-

truckload) to become highly concentrated. The rationale behind these

concerns is the assumption that there may be significant economies of size

related to the assembly facilities.7 The extent of concentration in this

industry as a whole and, in particular, in its LTL portion is examined in

the next subsection.



















60

00 -









30 -




0-300 300-600 600-900 900-1200 1200-1500 500- 18t
DIsrmct BV MtLE
t0 SPEdCLIZtD eCARRotm + OCcSIoL CAflMtS

PIGURf 12 t TRUCK PASSING OF FLORIDA ORNAMENTAL SHIPMENTS
BY CARRIER TYPES AND DISTANCE IN 1984










Industry Concentration

By multiplying the origin-to-destination distance with the truckload

equivalence, a measure of output of transportation services, CUBE/MILES,

can be derived.8 This, in turn, may be employed to investigate the level

of concentration in the Florida ornamentals transportation market. In

Table 5 concentration ratios are presented for all shipments, single drop

and multiple drop shipments, and multiple drop shipments over and under 500

miles.

For all shipments, the concentration ratios do not appear to be

unusually high relative to those for other trucking markets and for U.S.

industry as a whole. The four firm concentration ratio for all ornamentals

shipments in 1984 was .34, compared to .39 for all U.S. manufacturing in

1972 and to between .28 and .50 for nonagricultural, nonspecialized

trucking (known as general freight) in 1983 (McClure):



Region 1984 four firm concentration ratio of ornamental
shipments

Eastern Central .50
Pacific Inland .49
Rocky Mountain .48
Central States .30
Middle Western .28
Middle Atlantic .28



It should be stressed, however, that linkages between industry structure

and behavior are likely to vary across industries. There is no guarantee,

therefore, that an industry with a given level of concentration will or

will not perform in a satisfactory manner.












Table 5. Concentration Measures for Ornamentals Transport in 1984.
Concentration All Less than
Ratios Ship- Truckload Truckload LTL Under LTL Over
(# firms) ments (single drop) (multiple drop) (500 mi.) (500 mi.)


1.00


1.00


5,406 2,850


1.00


.19
.30
.41
.48
.62
.66
.69
.71
.77
.81
.85
.88
.89
.91

1.00


694 2,362


1
2
3
4
8
12
16
20
50
100
200
300
400
500


All

Number of
Firms


1.00


7,479









29

As would be expected considering the tendency of Specialized carriers

to carry multiple drop loads and longer distance loads, the most

concentrated segment of Florida ornamentals trucking is that for multiple

drop loads with over 500 miles trip distance. The four largest firms

hauling this type of load accounted for 48 percent of the total volume,

(rightmost column of Table 5). This compares to the least concentrated

segment of the industry, that for single drop loads, in which the four

largest firms accounted for only 15 percent of the volume (column 2 of

Table 5). These results suggest that the larger Specialized carriers may

enjoy a considerable degree of market power with respect to long-distance,

small size shipments (1.e., LTL over 500 miles). However, it seems likely

that this is at least in part obviated by one or more of several

mechanisms, including: competition among the Specialized carriers,

competition from the 2,309 Occasional carriers that haul this type of load,

the threat of competition from those not currently hauling this type of

load (i.e., contestability), and the ability of shippers and receivers to

reschedule shipments to facilitate single drop loads.


Vehicle Sizes

Florida ornamentals are transported interstate in everything from

small vans to full sized tractor-trailers. The average length of the cargo

space for a vehicle carrying ornamentals in 1984 was just over 38 feet, and

the distribution of sizes was as follows:

Length of cargo space Number of truck passing Percent

Under 9 feet (vans) 531 1.4
10 to 15 feet 2,778 7.3
16 to 24 feet 4,235 11.1
25 to 38 feet 1,829 4.8
Over 38 feet 28,808 75.4









30

With over three quarters of all truck passing, the full sized tractor-

trailer (here defined as those over 38 feet) is the dominant type of

vehicle.

In virtually all cases, these tractor-trailers are equipped to control

the temperature of the cargo space. Many of the smaller trucks,

particularly the vans, may or may not have this capability. Without the

ability to control temperature, length of time that ornamentals can be held

in a vehicle is limited by the temperature tolerance of the plant type(s)

in the load and the ambient temperatures. Moreover, the longer the

distance, ceteris paribus, the more important are the labor and (usually)

the fuel savings of consolidating loads into fewer large, rather than

several small trucks.9 For both of these reasons, it would be expected

that larger trucks would tend to be utilized for longer distance hauls.

Table 6 and Figure 13 are presented as compelling evidence that this is the

case. Nearly 60 percent of the truck passing for vehicles with cargo

spaces under 39 feet long were for trips of 600 miles or less (Figure 13).

This compares with only 11 percent of the vehicles with longer cargo beds.

Less than 2 percent of truck passing for the smaller vehicles (i.e., cargo

beds under 39 feet) were for trips over 1300 miles, versus nearly 18

percent for the larger vehicles (Figure 13).



Weekly Pattern of Truck Passings

The frequency of truck passing varies considerably across the week.

In an average week, the number of truck passing is lowest on Monday (8

percent), rises to a moderate midweek peak, and thereafter climbs to

Saturday which alone averages over 20 percent of the week's total (Figure











Table 6. Ornamental Truck
1984.


Passings by Size of Vehicles and Distance in


Distance
Length of 0-600 600-1300 Over 1300
Vehicles Miles Miles Miles Total

9 feet or less 453 75 3 531
(83.3) (14.1) (0.6) (100)

10-15 feet 1944 802 32 2778
(70.0) (28.9) (1.1) (100)

16-24 feet 2206 1944 85 4235
(52.1) (45.9) (2.0) (100)

24-38 feet 820 981 28 1829
(44.8) (53.1) (1.5) (100)

39 feet or 3197 20455 5156 28808
longer (11.1) (71.0) (17.9) (100)

TOTAL NO. 8620 24257 5304 38181
% (22.6) (635)(13.9) (100)

Note: Row percentages in parentheses












50 -

so -

40

30 -

20 -

to10 -


0 600 Miles


7




K


7


601 1300 Mites


Over 1300 MIle


M Under 39 Feet


TRIP DISTANCE
P 39 Feet or Longer


FIGURE 131 TRUCK 8IZZ AND TRIP DISTANCE COMPARISON
OF FWLRIDA ORNAMENTAL SHIPMENTS IN 1984


N
K


/


?q I


\ \U









33

14). The weekly pattern of truck passing is related to the distance of

the haul. For example, for trips of 600 miles or less Saturday and Sunday

are the low volume days, with nearly equal shipment volumes during the

weekdays (Figure 15). For hauls between 600 and 2,400 miles the pattern is

similar to that for all truck passing. Finally, for trips over 2,400

miles, Monday averages only 3.5 percent of the week's total, and there is a

single peak on Thursday, at which time almost a quarter of the truck

passing occur. Segmenting in 600 mile increments, the following

percentages of truck passing were observed on the weekend:

Trip Distance (miles)

0-600 601-1200 1201-1800 1801-2400 Over 2400


Percent of truck
passing on the 17 38 36 44 33
weekend

Clearly much higher percentages of hauls over 600 miles leave the Florida

Peninsula on Saturdays and Sundays than is true for shorter trips.

The question, is why should this distance-outshipment day relationship

exist? It seems plausible that the pattern of outshipment days is in large

part dictated by receiver delivery day preferences. Moreover, there is no

obvious reason to suspect that wholesalers and retailers located far from

Florida would be more or less likely to prefer deliveries on weekends. If

true, then the percentages of delivery days at each distance that are on

the weekend should be approximately the same. For a rough approximation of

delivery days, the following are assumed:

Trip Distance (miles)

0-600 601-1200 1201-1800 1801-2400 Over 2400

Outshipment days for Fri & Thr & Wed & Wed & Tue &
weekend delivery Sat Fri Thr Thr Wed












22
21
20
19
z 18 -




15






to










TIMM 144 AVERAGE -ERRtt PATTM ()IP
S M12 19


10
9 -
8 -
7 -- I I -
Sunday Monday Tuesday Wednesday Thursday friday Stolurdey
DtwY

PIGURU 14t AVERAGE WEKLY PATTE'MRnt OF PtORIDA ORNAMNTAL
SHIPMErNTS Ni 1984











28

26

24

) 22
O
Z 20 -
S18 -
10

Y


I- 12
Ll
S0 O

w
0 6
OI'


2 --"I--
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
DAY
a 0 to 600 miles + 1200 to 1800 mile
0 Over 2400 miles

FIGURE 15 WEEKLY PATTERN OF FLORIDA ORNAMENTAL SHIPMENTS
BY DISTANCE IN 1984










36

The above delivery time estimates are, in turn, based upon three

considerations:

1. 600 miles is approximately the limit that a single driver legally
can cover per day,

2. receiving docks at many florists may not be open all day on
Sunday, and

3. for distances above 1,800 miles carriers are likely to use team
drivers.10

Using these delivery time estimates, the average percentages of weekend

deliveries are as follows:

Trip Distance (miles)

0-600 601-1200 1201-1800 1801-2400 Over 2400

Percent of weekend
deliveries 24 25 26 24 20

The pattern of deliveries across distance is much more even than that for

outshipments, supporting the hypothesis that delivery day preference is the

principal cause of the observed distance-related differences in the

distribution of outshipment days.









37

SUMMARY

The major findings in this study are:

1. Between 1981 and 1984, the volume of product shipped by the

Florida ornamentals industry increased by 73 percent (from 18,356

to 31,689 "Truckloads"). Florida has the nation's largest

foliage and second largest ornamentals industry. Within Florida

ornamentals ranked second behind citrus in 1984.

2. Foliage is the most important single type of ornamentals,

accounting for nearly two thirds of all interstate shipments.

3. Ornamentals shipments follow distinct seasonal swings. For all

ornamentals, April is the peak month. The degree of seasonality

for ornamentals is much less than for produce. In fact, during

July, August, and September produce shipment levels actually fall

below those for ornamentals.

4. Ornamental shipments for the Peninsula are almost evenly divided

between the middle and southern areas. With the exception of

Landscape Plants, the northern area of the Peninsula is of

relatively minor importance as a shipping area. The shares of

total shipments accounted for by the three regions of the

Peninsula remain almost constant across the year.

5. Approximately two thirds of all Florida ornamentals are delivered

to the states east of the Mississippi River. The Southeast is

the single most important region (25 percent), followed by the

Lake States (20 percent) and the Northeast (19 percent). The

South Plains is the most important destination market west of the

Mississippi River. This is primarily due to Texas, which









38

accounts for nearly two thirds of the 17 percent South Plains

share.

6. Differences across plant types regarding destination areas

appears related to climatic conditions in the destination region

and to whether the plant type is displayed indoors or out-of-

doors.

7. Carriers specializing in ornamentals transport (i.e., those with

more than 50 truck passing annually) tend to:

1. use larger vehicles
2. have longer average lengths of haul
3. make multiple drops.

8. The level of concentration in the ornamentals transportation

industry appears to be moderate. However, due to the above-

mentioned areas of emphasis for specialized carriers,

concentration levels are higher with respect to longer distance,

multiple drop loads.

9. The vehicles employed to haul ornamentals range from small vans

to full sized tractor-trailers. Three-quarters of the truck

passing were tractor-trailers. These larger trucks tend to be

employed for longer distance hauls.

10. There are distinct weekly shipment patterns. For all

ornamentals, Monday has the smallest number of truck passing and

Saturday has the highest. This pattern differs in accordance

with trip length. This appears to be due to receiver preferences

regarding delivery days.









39

RECOMMENDATIONS

Florida ornamentals in 1984 was second only in the state to citrus in

terms of gross farm receipts. Unlike the citrus industry, however, little

information on production, marketing and distribution of ornamentals is

available. The Florida Department of Agriculture and Consumer Services

collects valuable information on the industry at its inspection stations,

located at base of the Florida Peninsula. Unfortunately due to budgetary

and manpower restrictions, much of this information is never analyzed or

distributed. In this report, the results of an analysis of data for

calendar year 1984 has been presented. These results have quantified the

absolute volume of Florida ornamental shipments, the shipping origins

within the State, and seasonal and geographic patterns of shipments and

deliveries. Moreover, new information has been developed regarding the

structure and characteristics of the transportation sector.

It is anticipated that the information presented in this report will

be of value to industry participants and policymakers. However, as the

Florida ornamentals industry is changing and growing rapidly, the age of

the data seriously compromises its usefulness. An ongoing series of up-to-

date reports regarding this data would be an important planning tool for

industry participants and policymakers, and be of value to research and

extension personnel. Such reports would keep interested parties abreast of

the current situation and facilitate the identification of trends. With

over 16 percent of the State's total farm receipts, there can be no

question that ornamentals warrants this level of effort. It is therefore

recommended that representatives from the industry, the Florida Department

of Agriculture and Consumer Services, and the Institute of Food and

Agricultural Sciences meet to initiate such a project.










40

FOOTNOTES



1. To pass into or out of the Florida Peninsula one must cross over

either the St. Marys or the Suwanee River. The Agricultural

Inspection Stations are arrayed so as to intercept all traffic over

all of the bridges.

2. Cubic capacity was estimated as follows: (1) if bed length < 10 feet

(a van), 234 cubic feet; (2) if bed length > or 10 feet, 8 (width)

*8.5 (height) length; (3) if not full, then considered to be 2/3

full.

3. The coefficient of variation is a measure of variation scaled by the

average level of the variable in question. In particular, it is the

standard deviation divided by the mean.

4. For produce, unlike ornamentals, weight is usually a more limiting

factor than volume in transport. A truckload for produce is here

assumed to equal 40,000 pounds. The source for the data on produce

shipment amounts is USDA Fresh Fruit and Vegetables Shipments.

5. It could be argued that this function is sometimes accomplished at

Florida State Farmers Markets and by a few larger growers. However,

the authors are not aware of any produce carriers that maintains local

pickup vehicles and one or more assembly facility to prepare multiple

shipment, interstate loads.

6. For information regarding how these rates were collected, see Beilock,

1987.

7. For more detailed discussion on this point, see Chiang and

Friedlaender, Chow, Dailey, Emery, Horn, and McMullen.









41

8. This measure is directly analogous to weight/distance measures, such

as ton/miles or ton/kilometers, that are frequently employed in

transportation studies. Again, the use of cubic capacity, rather than

weight, is in recognition of the low density levels of ornamentals

cargos.

9. As the origin-to-destination distance increases, the importance of

costs related to spanning this distance increases relative to costs

associated with pickup and delivery functions.

10. The common use of team drivers for distances above 1,500 miles is well

documented, for example see Boles and Beilock.








42

References



Beilock, R., Transportation of Florida Produce, USDA Bulletin,

1987(forthcoming).



Chiang, J. and A. Friedlaender, "Truck Technology and Efficient Market

Structure." The Review of Economics and Statistics 65,2(1985):250-8.



Chow, G., "The Cost of Trucking Revisited." Motor Carrier Economic

Regulation: Proceedings of a Workshop National Academy of Sciences,

1978.



Dailey, V., The Certificate Effect: The Impact of Federal Entry Controls

on the Growth of the Motor Common Carrier Firm, unpublished

dissertation, Swarthmore College, 1973.



Emery, P., "An Empirical Approach to the Motor Carrier Scale Economies

Controversy" Land Economics 61,3(1985):285-89.



Florida Crop and Livestock Reporting Service, Floricultural Crops. 1984

Winter Park, Florida, 1985.



Florida Foliage Association, Florida Foliage Locator: The Official

Directory of the Indoor Foliage Industry, Apopka, Florida, 1985.










43

Florida Nurserymen and Growers Association, Inc., 1985 Membership

Directory & Buyer's Guide, Orlando, 1985.



Horn, K., "Implication of USA Deregulation on Trucking Industrial

Organization", Proceedings of the World Conference on Transport

Research (1986):375-83.



McLure, H., Statement on Predatory Pricing and Antitrust Enforcement in

the Trucking Industry before the Subcommittee on Surface

Transportation. Committee on Public Works and Transportation, United

States House of Representatives, November 7, 1985.



McMullen, S., "A Preliminary Examination of the Impact of Regulatory

Reform On U.S. Motor Carrier Costs", Invited Paper at the World

Conference on Transport Research, 1986.



McMullen, S. and L. Stanley, "The Impact of Deregulation on the Production

Structure of the Motor Carrier Industry", paper presented at the 1986

Annual Meeting of the Western Economics Association.



Stigler G. and R. Sherwin,. The Extent of the Market, The Journal of Law &

Economics, 28,3(1985):555-86.



U.S. Bureau of the Census, Census of Transportation, 1977, Truck Inventory

and Use Survey Government Printing Office, Washington, 1977.









44

U.S. Department of Agriculture, Economic Indicator of Farm Sector. State

Income and Balance Sheet Statistic 1980, Economics Research Service,

USDA 1981, 1985 (annual) and 1986a,



U.S. Department of Agriculture Fresh Fruit and Vegetable Shipments by

Commodities. States, and Months, Agricultural Marketing Service, USDA,

various issues, 1970-1986b(annual).



U.S. Department of Agriculture, Fruit and Vegetable Truck Rate and Cost

Summary. 1984, Agricultural Marketing Service, USDA, 1985.




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