Based in New York City, Target Interstate Systems focuses much of its efforts
on serving the buying community in the surrounding area.
"Our main emphasis is on the I-95 corridor from Washington, DC, up through
Maine," said Paul Kazan, president and founder of the firm. "We service most
of the major growing regions -- California, Texas, Florida -- getting produce
from there to this area."
The company has two divisions -- one dealing in produce and one hauling
other goods. Mr. Kazan said that the firm's business is split fairly evenly
between those two freight sectors.
In the produce arena, he sees a continuation of the higher rates that have
been par for the course for the past couple of years. One major reason is the
continuation of the difficult economic times, which have resulted in a
decrease in trucks competing for those loads. "The amount of equipment
available for produce loads is less than it was," he said.
Mr. Kazan added that there are just fewer shipments being sent from
manufacturing regions to the produce producing areas. Because produce
truckers have a difficult time getting back to those areas, or they have to take
low-paying loads to reach those destinations, the cost for the produce haul
increases. "For example, let's say a truck needs to make $9,000 or $10,000
for a round trip," said Mr. Kazan. "If he is only getting $3,000 to get out to
California, he's got to make the rest on the produce haul."
If the economy heats up this summer and results in more shipments of
manufactured products out West, Mr. Kazan said, one could theorize that
produce hauls will be less expensive. But he quickly added that it is virtually
impossible to make projections in the produce industry. Weather and many
other factors have a great deal to do with the eventual supply needs with
regard to trucks. In fact, those factors can easily overshadow anything else.
Founded in 1981, Target Interstate Systems is a third-party, full-service
transportation and logistics company dedicated to providing the highest level
of quality and reliable service to the perishable fresh fruit and produce
industry. The company employs a non-asset based approach, allowing it to
custom-tailor logistics solutions for its clients' needs.
While providing over-the-road truck transportation is its main business, the
company also will get involved in arranging for intermodal transportation
hauls if that is what the customer requires. In fact, Mr. Kazan believes that
alternative transportation methods, most notably the use of rail, will increase
for produce hauls in the coming years. He said that a number of factors are
combining to make rail more attractive. Two of those factors are increased
emphasis on green technology and increasing government regulations on the
There has been much written about the idea that rail transportation is
"greener" than trucks since the carbon footprint as measured by tons shipped
per mile is much less. But Mr. Kazan said that trucks obviously offer
advantages, especially to the produce industry, that far outshine rail
transportation. He didn't totally discount the concept that some of the new
regulations on truck drivers are taking away some of those advantages, which
may be the point of those regulations. "Trucks are much faster than rail" in
cross-country deliveries, he said, "but if you continue to limit the amount of
time a trucker can drive and add a day to the trip, and make the rail a day
faster, the time difference is much less."
He added that there is a role for logistics firms such as his as the use of rail
transportation increases. He said that it will still take a broker to arrange the
load from the original point of shipment to the rail terminal, and then once
again from the end of the rail line to the final destination.