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SUITABILITY OF TRAY-PACK SHIPPING
CONTAINERS AND BIN CONTAINERS
FOR PALLETIZED OVERSEAS SHIPMENTS
OF SMALL APPLES

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Marketing Research Report No. 945

Agricultural Research Service

UNITED STATES DEPARTMENT OF AGRICULTURE

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Historic, archived document

Do not assume content reflects current
scientific knowledge, policies, or practices.

CONTENTS

Page

SUMIMATY in. ie ena ce sce RBSe eee eas ela ee ae ei ee ee oe wera en rece
Introduction -2iss2sn2 oven Soe ee oe ee ete eet Teme a ae gee ee ets BO
Procedures. = sos S22 Si esjn2 te ee Soe sk see eos see ee ae ae wre eee pe eg RA
Costezarid ‘charges..-_.5- 2422 22s bo a etre ee ett
Physical\pertormancen 22 425 ee ek ee te nt Se She re eee ee
Description, of shipping containers... 2222023225 55.0 522222 se ate es ee
Tray=pack boxes. and “‘trayss- <ios5 22 sooo Seo See eA a aay ett
Palletized ‘tray=pack boxes: 22-2 2k see Se Lae Saeed a 2 ee ee
Palletized:ibin bOxCs .42.0.225525 040123 uel See am a oe ead = Se ee ee ae
Costs, and: chargész)_.< 26 2.528 tS se ek aS ee ees = ok ne ep
Materials and direct labor costs to pack and palletize.____._-_--_-----------------
Handling costs from packinghouse to receiver warehouse_______---_---------------
Coldroom)Gosts<2272.55 fee 20F eh aaj eee eink ds eases oe Se re a ee ee oe
‘Transport:charges: = 22) 2 UE eet ee See eee eee eee
Total costs-and chargess-| us 2s... e ee te ee ee ed
IBTUIsiNng tose eee Se A ee he eS Pee ee eee 2 ye es
Shallow-cup tray-pack and bin boxes._-.-:...-22222222-22s22225522s4-225-4244-
Shallow-cup and deep-cup tray-pack boxes_____----------------------------------
Container damage and *pilferage.-. 2. -2222 2242s acsSside. eset aes eee eee ee 10
Container damege:..2...2.52'320. jo ssc ee SAO ee Ae See eS eee 10
Pilferape. 22-222 Saco tert bstesae Ss) hie asc e ses aoe ee ee eee 11
Trade reactions...) 22254 2222 sek te pee cee edad e eos Reese se teeaueee Sepa eee 13

omMNnmnNoODWmDounnrPrPPr WWWNnNnNnnNr-

Washington, D.C. Issued August 1972

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 - Price 15 cents

SUITABILITY OF TRAY-PACK SHIPPING CONTAINERS AND BIN
CONTAINERS FOR PALLETIZED OVERSEAS SHIPMENTS OF

SMALL APPLES

By James B. Fountain, Roy M. Hovey, Lawrence A. Risse, and Martin Doorpan, agricultural economists, Transporta-
tion and Facilities Research Division, Agricultural Research Service

SUMMARY

Washington-Oregon apples packed in 42-pound
tray-pack boxes may be shipped to Europe on
pallets at less cost and arrive in better condition
than when handled individually in break-bulk
shipments. However, some of the unitized pallet
loads did not arrive intact because of loose or
broken straps or damaged boxes or pallets. Pal-
letized bin boxes—four fiberboard boxes each
holding 200 pounds of apples unitized together on
a pallet—are less costly for packing and shipping
Washington-Oregon apples to Europe than pal-
letized tray-pack boxes, but they result in more
bruising injury to the apples. In addition, the
palletized bin boxes are suitable for only those
European receivers that prepackage apples before
distribution to retailers. Deep-cup pulpboard trays
especially designed for the soft fleshed Golden
Delicious apples cost 4 cents more per 42-pound
box than shallow-cup trays. But these deep-cup
trays protected the apples better from bruising
damage in break-bulk test shipments made to
Europe from Virginia and from the Pacific North-
west. Palletizing the deep-cup tray-packed apples
did not materially reduce the level of bruising.

The costs of packaging and palletizing materials,
direct labor, coldroom, and transport charges
from apple packinghouses in Washington and
Oregon to the receivers’ warehouses in Europe
were:

Cost
per box
(dollars)
Type of container:

Shallow-cup tray pack:
Nonpalletized___..------------------ _. 3. 54
Palletized {2 <scssesccclseoscne se eess 3. 36

Deep-cup tray pack:
Nonpalletized____.__------------------ 3. 58
Palletized...2..-..2---4.ss20-5++% _... 3.40

Bin boxes, palletized_____--.--------------- 2. 51

There were no significant differences in serious
bruise injury (over 1 inch in diameter) among the
shipping containers. Significant differences in
damage bruise injury (3% to 1 inch in diameter),
however, were found in apples shipped:

1. In bin boxes compared with those shipped
in the shallow-cup tray-pack boxes, palletized or
nonpalletized.

2. In nonpalletized shallow-cup tray-pack boxes
compared with those shipped in palletized shallow-
cup tray-pack boxes.

3. In nonpalletized shallow-cup tray-pack boxes
compared with those shipped in palletized deep-
cup tray-pack boxes.

No significant differences were seen in bruising
of apples packed and shipped in the deep-cup
tray-pack boxes, palletized or nonpalletized.

Not all boxes arrived in excellent condition.
About 4 percent of the nonpalletized shallow-cup
or deep-cup tray-pack boxes were seriously dam-
aged compared with 1 to 2 percent of those pal-
letized. The bin boxes were not seriously damaged.

sf

2 UWS. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

INTRODUCTION

Only 0.1 percent of the apples shipped in
palletized tray-pack boxes were pilfered compared
with 1 percent of those in nonpalletized tray-pack
boxes. No apples were pilfered from the palletized
bin boxes.

Wholesale receivers in Europe preferred receiv-
ing the tray-pack boxes palletized, but often
complained that many pallet units arrived in poor
condition. European receivers who prepackaged
apples preferred the palletized bin boxes because
they were less costly.

During the 10-year period, 1929-38, U.S. exports
of fresh apples accounted for 8.9 percent of the
total U.S. commercial apple crop. During the
22-year period, 1949-70, U.S. apple exports aver-
aged about 2.5 percent of the total crop.'

A spokesman for the apple industry says that
some factors responsible for this decline in U.S.
apple exports are:

(1) European countries embargoed U.S. apples
following World War II because apples were
considered a luxury.

(2) Several European countries, during this
embargo, substantially expanded their apple acre-
age (also, similar expansion occurred in the
Southern Hemisphere).

(3) Overseas countries have been slow to reduce
post-war trade barriers.

(4) European trade groups have been protec-
tionist.

(5) The prices of U.S. fruit are relatively higher
than prices of fruit produced in Europe and in
other fruit-exporting countries because of inflation.

(6) Apple industries in some competing coun-
tries ‘‘enjoy”’ subsidies.

(7) Improved cultural and handling practices
and substantially increased and improved storage
facilities in major European-producing countries
have resulted in a larger volume of better fruit
being available over a longer marketing period for
both domestic and export markets. (See reference
listed in footnote 1.)

Western European apple-importing countries
account for about 75 percent of world imports.
These countries get about two-thirds of their apple

1 Burrows, Frep W. FUTURE BLEAK FOR U.S. APPLE,
PEAR PXPoRTS. The Packer, Jan. 2, 1971.

supplies from various European apple-exporting
countries and most of the rest from Argentina,
Australia, South Africa, New Zealand, and the
United States.

The U.S. apple industry must continue to seek
ways to package and transport apples efficiently
to permit exports of high-quality fruit at prices
that customers in Europe or in other countries are
willing to pay.

The purpose of this study was to investigate
ways to package and ship fresh apples to Europe
at lower costs or to improve their arrival condition
or both. This study investigates the costs of
packaging and shipping in shallow-cup and deep-
cup tray-packed boxes, palletized and nonpal-
letized, and bin boxes, palletized. In addition, the
extent of bruising of the apples, damage to the
boxes and bins, and pilferage of apples when they
were packed and shipped in these containers were
investigated.

PROCEDURE

Costs and Charges

The costs of packaging and shipping U.S. apples
in alternative containers were based on north-
western grown apples shipped from west coast
ports to Europe. Packing and transport costs for
eastern growers would not be significantly different
except for ocean or transcontinental freight. Each
shipper regardless of location has minor variations
in materials, labor, and overhead costs. The costs
shown here are to compare the different packing
and shipping systems.

The costs of packaging and palletizing materials
for the boxes, trays, and pallets were obtained
from manufacturers and suppliers. The cost of
these materials was based on the average cost per
thousand units to Washington and Oregon packer-
shippers for either carlot or other large-quantity
orders.

The costs of direct labor for packing, palletizing,
loading, unloading, and handling at packinghouses,
ports of embarkation and destination, and re-
ceivers’ warehouses were obtained by time studies.
Labor costs were calculated on a basis of $2 per
hour at the packinghouse, $4.50 per hour at port
of embarkation, and $2 per hour at port of desti-
nation and at the receivers’ warehouses in Europe.

The costs of storage at shipping point were
obtained from the owner of a Northwest packing-

TRAY-PACK AND BIN CONTAINERS FOR OVERSEAS SHIPMENTS OF APPLES 3

house design firm and packinghouse owners or
managers. Cost per square foot for packinghouse
storage was based on a 60-day storage period.

Prevailing truck and ocean-contract rates were
used to determine the transport charges from
packinghouses to European markets. The ocean
rates to various countries in Europe were averaged
by weighting the rates according to the quantity
of fresh apples shipped during 1967.

Other costs, not substantially affected by size
and type of containers, such as receiving, super-
vision, sales, fieldmen, equipment, and overhead,
were not included in this study.

Physical Performance

The physical performance of alternative con-
tainers was evaluated for Golden Delicious apples
grown in Virginia and shipped to Europe as well
as for Golden Delicious, Red Delicious, and
Newtown apples produced in and shipped from
the Northwest to Europe.

Four test shipments of Golden Delicious, Red
Delicious, and Newtown apples were made from
Oregon to Sweden by ocean carrier during 1966—
67 to test the shallow-cup tray-pack boxes,
palletized and nonpalletized, and the palletized
bin boxes. In 1968, two test shipments from Wash-
ington and three from Virginia of Golden
Delicious apples were made to England and
Norway by ocean carrier to test the shallow-cup
and deep-cup tray-pack boxes, palletized and
nonpalletized.

The apples selected for the tests from Oregon
were packed from late September to early October
and held in cold storage. The first shipment left
on November 19, 1967, and arrived in Stockholm,
Sweden, December 29, 1967. The last shipment
left Oregon on December 29, 1967, and arrived in
Sweden on February 10, 1968.

The apples selected for the tests in 1968 were
produced in Washington and Virginia. They were
packed into the test boxes shortly before each
shipment was scheduled to leave.

An experimental design was used for each series
of ocean carrier test shipments to analyze the
bruising data statistically. Each test shipment
from Oregon contained 24 shallow-cup tray-pack
boxes, nonpalletized; 24 shallow-cup tray-pack
boxes, palletized; and three pallets of bin boxes.
Each test shipment from Washington contained

10 shallow-cup and 10 deep-cup tray-pack boxes,
nonpalletized, and 10 shallow-cup and 10 deep-
cup tray-pack boxes, palletized. Each test ship-
ment from Virginia contained 16 shallow-cup and
eight deep-cup tray-pack boxes, nonpalletized,
and 16 shallow-cup and eight deep-cup tray-pack
boxes, palletized. The test boxes were placed
among other boxes to simulate normal commer-
cial handling conditions.

Boxes were inspected at the receiver’s ware-
house for the four shipments to Sweden in 1967.
For the five shipments in 1968, boxes were in-
spected as they were unloaded from the boat at
the dock. Apples were inspected and scored for
degree of bruising.’

DESCRIPTION OF SHIPPING
CONTAINERS

The shipping containers tested for apples were:
(1) Shallow-cup tray-packed boxes, nonpalletized ;
(2) shallow-cup tray-packed boxes, palletized;
(3) deep-cup tray-packed boxes, nonpalletized;
(4) deep-cup tray-packed boxes, palletized; and
(5) fiberboard bin boxes, palletized.

Tray-Pack Boxes and Trays

The tray-pack boxes tested are shown in figure
1. Inside length, width, and depth dimensions of
the boxes used were 19%; by 12 by 11% inches.
Each apple was wrapped in tissue paper and a pad
was placed on the top layer of apples. For Golden
Delicious apples, polyethylene-film box liners
were included.

The shallow-cup pack had five trays and a top
pad (fig. 1, C). The deep-cup pack had five trays
and a molded pulpboard “‘cap”’ (fig. 1, D).

In Oregon and Washington, the net weight
of tray-pack boxes varied from 40 to 44 pounds
because of density differences in different apple
varieties. For this study, an average net weight
of 42 pounds was used to calculate costs per box
or per pound.

2 Degrees of bruising are: Slight bruising injury, bruise
between 44 and % inch in diameter and less than } inch in
depth; damage bruising injury, bruise between % and 1
inch in diameter and less than \% inch in depth; and serious
bruising injury, bruise over 1 inch in diameter or more
than 4 inch in depth.

4 U.S. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

The boxes were stacked on 48- by 40-inch pal-
lets, seven per layer, five high, for a total of 35
boxes. The pallets were then stored until time for
export. Before inland movement to port of em-
barkation, the boxes were restacked on 48- by 42-
inch export pallets, seven per layer, seven high, for
a total of 49 boxes. These pallets were delivered to
the port and moved onto the ship; each box was
then removed from the pallet and stored inside
the ship’s chamber.

Palletized Tray-Pack Boxes

The palletized tray-pack boxes were tray-pack
boxes shipped to the overseas receiver on a pallet.
These boxes were stacked on 48- by 42-inch pallets

according to size and grade, seven per layer, six
high, for a total of 42 boxes (fig. 2). Two straps
were used to secure the boxes to the pallet. The
wooden pallets weighed about 40 pounds and
measured 5% inches high. The total shipping unit
weighed about 1,972 pounds (42 boxes times 46
pounds gross weight per box plus 40-pound pallet).

Palletized Bin Boxes

The palletized bin-shipping containers tested are
shown in figure 3. Inside length, width, and depth
dimensions of these containers were 23 by 20 by
22 inches, with 6-inch top flaps. One wooden
cornerpost was used in each bin. One bin had a
capacity of about 200 pounds and the apples were

BN-2740; BN-2741; B-N2742;

BN-2743

Fiaure 1.—Tray-pack boxes: A, Empty tray-pack box;

B, packing the tray-pack box; C, apples in shallow-cup
trays; D, apples in deep-cup trays.

TRAY-PACK AND BIN CONTAINERS FOR OVERSEAS SHIPMENTS OF APPLES 3)

BN-2744; BN-2745

Figure 2.—Palletized tray-pack boxes: A, A pallet load of tray-packs; B, a strapped pallet load of tray-packs at the
packinghouse.

mechanically jumble-packed into the bin by a
filling machine (fig. 3).

Four of these bins were placed on a two-way
wooden pallet measuring 48 by 42 inches with a
part-telescope lid measuring 47 by 41 by 6 inches
fitting over all four bins. Three straps were used
to secure these four bins to the pallet. The packed
shipping container had outside dimensions of 48
by 42 by 30 inches, a net weight of about 800
pounds (19-box equivalent), and a gross weight
(including the pallet) of about 875 pounds.

COSTS AND CHARGES

Materials and Direct Labor Costs to Pack
and Palletize

Table 1 lists the costs of packaging materials,
palletizing materials, and direct labor to pack and
palletize for the various containers. Total costs
were as follows:

Cost
per container
Type of container: (cents)
Shallow-cup tray-pack box:
Nonpalletized.__..._._..-...--------.--- 86. 6
Palletizedt.< 21 sceecadeec se te used ce 97. 2
Deep-cup tray-pack box:
Nonpalletized____-_-_--- Soho ceeee cee 90. 8
Palletized 5: ses cete ce cetaca ese seus 101. 4
Bin, palletized (42 pounds)_____-____--_----- 47.4

Handling Costs From Packinghouse to
Receiver Warehouse

Costs of labor for handling the packed pal-
letized and nonpalletized boxes into and out of
storage, loading and unloading trucks and ships,
moving into and out of terminal points, and re-
moving apples from boxes at receiving ware-
house for consumer packaging are shown in table
2. Removing the apples from the boxes at the
receiving warehouse is shown in figure 4. The cost

U.S. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

BN-2746; BN-2747; BN-2748

Ficure 3.—Bin boxes: A, Filling bin boxes; B, bin box filled with apples; C, completed strapped pallet loads of bin boxes
ready for shipment.

of handling 42 pounds of apples in nonpalletized
tray-pack boxes was 57.7 cents per box. This
cost per box was 31.9 cents for palletized tray-
pack boxes and 20.1 cents for palletized bin boxes
(table 2). The five- and six-layer pallet loads of
tray-pack boxes were 62/4 and 80 inches high,
respectively, and were forklifted one at a time.
The pallet load of bin boxes was 30 inches high
and was forklifted three at a time.

Coldroom Costs

Shallow- or deep-cup tray-pack boxes not con-
signed to be exported on a pallet were commonly
stored in the coldroom on pallets (5 high, 7 per
layer, 35 boxes) stacked three pallets high. Those
tray-pack boxes consigned for export on pallets,
however, probably would be stored in the coldroom
(6 high, 7 per layer, 42 boxes) only two pallets

TRAY-PACK AND BIN CONTAINERS FOR OVERSBAS SHIPMENTS OF APPLES 7

TABLE 1.—Cost of packaging materials, palletizing materials, and labor for packing and palletizing Red
Delicious, Golden Delicious, and Newtown apples produced in and shipped from the Northwest in
specified containers, 1968

| Cost per box or box equivalent !

Item Shallow-cup tray-packed box Deep-cup tray-packed box
Bin box,
palletized
Nonpalletized Palletized Nonpalletized Palletized
Materials: Cents Cents Cents Cents Cents
Packaging? 22s sseee ee seecs 74. 6 74. 6 78. 8 78.8 17. 9
Palletizing. $2.2. os2022 25 cece cose 0 8.7 0 8.7 18. 6
POtall=< 2 ees cata Ste ese e 74. 6 83. 3 78. 8 87.5 36. 5
Direct labor: 4
TO PaChss.sccena se boss lo eee 12. 0 12.0 12.0 12. 0 7.4
Palletize.222.2-.2 ss sccceeseee le 0 1.9 0 1.9 3.5
Motels tee eos Sooses= 3 Fee 12.0 13. 9 12.0 13.9 10. 9
Total costs, materials and labor________ 86.6 97.2 90.8 101.4 47.4

1 Based on apples packed 42 pounds per box. Pallet loads consisted of 42 tray-pack boxes or an equivalent of 19
boxes per pallet load of bin boxes.

2 Includes cost of boxes, trays, paper wraps, and pads. For cost of 134 mil-polyethylene-film box liner add 4.5 cents.

3 Includes cost of pallet and strapping materials.

4 Labor costs based on hourly wage of $2.

TaBLE 2.—Cost of specified handling operations of shallow- and deep-cut tray-pack bozes, palletized and
nonpalletized, and bin bozes, palletized, packinghouse to overseas receiver's warehouse, 1967 and 1968 *

Cost per box or box equivalent ”

Handling operation Shallow-cup or deep-cup tray- Bin box,
| packed box palletized
jo (stacked 3
high)
Nonpalletized Palletized
Cents Cents Cents
At packinghouse: 3
Move into and stack in storage__________-____-____----------_-__ 1.5 0. 2 0.1
Move from storage and load into truck._.___.____.______--_-_-_-_- .4 .4 .3
At port of embarkation: 4
Unload and move into storage shed_____________________________ .6 . 6 .5
Move to ship side and load into chamber_______________________- 6.5 3. 2 2.4
At port of destination: 3
Unload and move into storage shed and stack.__________________- 10. 9 .7 5
Move from storage shed and load into truck____________________- 9.1 1:1 .8
At receiver warehouse: 3
Unload truck and move into storage._________-_______-_______-- 4.1 Leh 8
Open boxes and remove apples for repackaging into small trays___- 24. 6 24. 6 14.7
Total, handling operations.._______________________________- 57.7 31.9 20. 1

1 Includes 15 percent allowance for fatigue and personal time. :

? Pallet loads consisted of 42 tray-pack boxes. or an equivalent of 19 tray-pack box units per pallet of bin boxes. 3
pallet loads of bin boxes contain the equivalent of 57 tray-pack boxes.

3 Labor costs based on hourly wage of $2.

4 Labor costs based on hourly wage of $4.50.

8 U.S. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

BN-2749; BN-2750; BN-2751; BN-2752

Ficgurr 4.—Removing apples from tray-pack and bin boxes at warehouse: A, Dumping apples from tray-pack boxes;
B, dumping apples from bin boxes; C, removing paper wraps and trays to repack; D, repacking from bin boxes.

high because of the greater weight stress on the
lower layer of boxes. The cost of coldroom space
for storing 42 pounds of apples in shallow- or
deep-cup tray-pack boxes on 48- by 42-inch export
pallets stacked two high was 13.7 cents and 11.1
cents when stacked three high on 48- by 40-inch
packinghouse pallets. Comparable cost for apples
stored in palletized bin boxes stacked seven high
was 8.7 cents (table 3).

Transport Charges

The ocean-freight rates in 1968 for shipping
apples from Pacific coast ports to ports in the
United Kingdom were $1.70 per box, nonpalletized,
$1.65 per box, palletized, and $28 ($1.47 per 42-
pound box equivalent) per pallet of bin boxes.
Rates to Scandinavian ports were correspondingly
higher. Average transport charges from the pack-
inghouse to European ports are shown in table 4.

TRAY-PACK AND BIN CONTAINERS FOR OVERSEAS SHIPMENTS OF APPLES 9

Transport charges per 42 pounds of apples for
shallow- or deep-cut tray-pack boxes were $1.98,
nonpalletized, and $1.98, palletized, and for bin
boxes, palletized, $1.75.

Total Costs and Charges

The total costs for the packaging and palletizing
materials, labor to pack and palletize, labor to
handle, coldroom, and transport charges are shown
in table 5.

The total costs and charges (those affected by
type and size of container) from Northwest
packinghouse to receiver warehouse, including
removal of the apples for consumer packaging,
per 42—pound box equivalent of apples were as
follows:

Cost
per box
Type of container:
Shallow-cup tray-pack box—
INonpalletizeds.62. 222 22n Yet ce sc sce $3. 54
Palletized 2 i. tana Sons ceiscn ose cccta 3. 36
Deep-cup tray-pack box—
Nonpalletized............-.----.----- 3. 58
Palletized/ S24 o- seh lance bocce coleeesd 3. 40
Bin box, palletized_......-...-.......-...- 2. 51

BRUISING
Shallow-Cup Tray-Pack and Bin Boxes

Bruising was higher for the apples packed in
bin boxes than for those packed in shallow-cup
tray-pack boxes, nonpalletized or palletized (table
6). The differences in the amount of bruising
between the nonpalletized and palletized tray-
pack boxes were not statistically significant.

In the bin boxes, 33.2 percent of the apples
were slightly bruised compared with 19.4 and 19.9
percent for the nonpalletized and palletized tray-
pack boxes, respectively. Also, in the bin boxes,
8.8 percent of the apples were damage bruised
compared with 3.7 and 2.2 percent for the non-
palletized and palletized tray-pack boxes, respec-
tively.

In the bin boxes more bruised apples were
found in the lower layers than in the middle or
upper layers.

Shallow-Cup and Deep-Cup Tray-Pack Boxes

Golden Delicious apples packed in shallow-cup
tray-pack boxes, nonpalletized had more damage
bruising than when they were packed into boxes
that were shipped palletized (table 7). This differ-

TaBLE 3.—Storage space requirements for packinghouse coldroom and costs for apples packed in tray-pack
and bin bozes, 1968 '

Item

Shallow- or deep-cup tray-pack boxes:

3 pallets highs?) -5)s2 22.8 e oso te we cde sebeaeen ce
2, pallets ‘high 4.2222. 222 2s2cc-cnsskscceesnasebeol

Bin boxes, palletized:

*? pallets high 242. 622 tose an Sect oloueselasensend

Floorspace Boxes per Costs per
per pallet pallet box or box
unit stack equivalent ?
|

Square feet Number Cents
Seeeteucess 18. 2 105 11.0
neceeueleee 18. 2 84 13. 7
Seeeona ene 18. 2 133 8.7

1 Estimates of cost, not prices, charged for commercial cold storage space. : :
? Based on a yearly cost per square foot of $2.26 for a 100- by 100-foot building costing $85,000, plus refrigeration

equipment costing $45,000. Yearly costs for this coldroom space are: $6,400 for 25-year building and 15-year refrigeration
depreciation ; $2,600 for taxes and insurance at 2 percent of $130,000; $3,900 for interest computed at 3 percent of average
investment; $4,800 for operational costs of water, electricity, and refrigeration; $1,300 for maintenance of equipment at
1 percent of $130,000; and $3,600 for operating labor. An average 60-day storage period over an average 214-day use
period is assumed. Cost per square foot divided by 214 days times 60 days equals $0.634 per square foot for 60 days.
This cost times floorspace divided by the number of boxes equals cost per box. These data were obtained from Food
Industries Research & Engineering, Yakima, Wash. Example of calculation: $2.26 per square foot divided by 214 days,
multiplied by 60 days, multiplied by 18.2 square feet, and divided by 105 boxes equals 11 cents per box for storage space.

3 Based on 35 boxes on a 48- by 40-inch packinghouse pallet with 2 inches overhang on the 40-inch side, and 30 per-
cent for aisle space.

* Based on 42 boxes on a 48- by 42-inch export pallet with no overhang, and 30 percent for aisle space.

5 Based on 19 boxes per unit of 4 bins on a 48- by 42-inch pallet with no overhang, and 30 percent for aisle space.

10 U.S. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

TaBLE 4.—Transport charges for shipping apples from Northwest packinghouses to European markets, 1968

Shallow-cup or deep-cup |

|
| tray-packed boxes | Bin boxes,
Item | | palletized
_ Nonpalletized | Palletized |
|
Inland transport:
Pallets pet loads..c.. 22525. 42248 2 ee eee ae ene number- -_- 118 18 2 42
Boxes or box equivalent per pallet______________-___- number ____ 49 42 19
Boxes or box equivalent per load________------------ number____ 882 756 798
Net weight of apples per load 3__---__--_---------___- pounds- -_- 37, 044 31, 752 33, 516
Gross weight including packaging materials and pallets*__-pounds____ 41, 292 35, 496 36, 750
Transport charges per standard-box equivalent®_________ cents-_-_-_ 23. 9 24. 0 23. 5
Ocean-freight charges: ®
Per standard-box equivalent_________-_-_----_---_--- dollars____ 1. 74 1. 69 155i
Total cost inland transport and ocean-freight charge____- dollars____ 1. 98 1. 93 7A)

1 Used in inland transport to port of embarkation only.

2 168 bins.

3 Average net weight of 42 pounds per box.

4 Calculated at 46 pounds per tray- pack box and 40 pounds for each pallet, and 875 pounds per pallet of bin boxes.

5 Calculated at 30 cents per gross hundredweight from Northwest packinghouses to Seattle and Portland ports and
21 cents from the overseas da stinetaoel port to the receiver warehouse (for example, 41,292 pounds multiplied by 51 cents
per ewt. and divided by 882 boxes).

6 Weighted average charges for countries in Europe were based on the quantity of fresh apples shipped to those
countries during 1967, as reported in U.S. Dept. Agr., Agricultural Statistics, 1969, p. 213. About 25 percent of the apples
exported to Europe in 1967 were to Sweden and Norway, and 75 percent went to other European countries. Charges
per box were obtained from Seaport Shipping Co., Freight Forwarders and Brokers, Seattle, Wash., and Portland, Oreg.

TABLE 5.—Costs of packaging and palletizing materials, labor to pack, palletize and handle, coldroom, and
transport for apples in shallow- and deep-cup tray-pack boxes, palletized and nonpalletized, and bin
boxes, palletized, Northwest, 1968

Cost per box or box equivalent

| |

Item | Shallow-cup tray-packed box | Deep-cup tray-packed box
| [eo | Bin box,
| | palletized
| Nonpalletized Palletized | Nonpalletized Palletized |
Materials and labor to pack and Dollars Dollars Dollars Dollars Dollars
pallletizes.- 2. 2 $20 oo oe ak Sec Sak 0. 87 0. 97 0. 91 1.01 0. 47
Handling from packinghouse to receiver
WarehOUséss 2s ccs SccaGeceastcesccee . 58 re2 . 58 . 32 . 20
Coldroomit 0 3 2geceese ceeds csackc Fatal » 14 sald .14 . 09
Transporta.2.22u3/oc 26ers ecw cele 1. 98 1. 93 1. 98 1, 93 1.75
Total, all items_____._____-___- 3. 54 3. 36 3. 58 3. 40 2. 51
ence was not statistically significant for the test CONTAINER DAMAGE AND
shipments made from Virginia. Differences in PILFERAGE
bruising of apples packed and shipped in non-
palletized and palletized deep-cup tray-pack boxes Container Damage
were not statistically significant. Apples in the
deep-cup tray-pack boxes arrived with signifi- All bin boxes arrived in Europe in excellent

cantly less bruising than those in nonpalletized condition; none were seriously damaged. When
shallow-cup tray-pack boxes. the shallow- and deep-cup tray-pack boxes were

TRAY-PACK AND BIN CONTAINERS FOR OVERSEAS SHIPMENTS OF APPLES 11

shipped nonpalletized, 4 percent arrived with
serious container damage compared with 1.5
percent when they were shipped palletized. Some
types of container damage are shown in figures 5
and 6.

Pilferage

Pilferage—a serious problem in some export
shipments—was 1 percent in the nonpalletized
tray-pack boxes, 0.1 percent in the palletized
tray-pack boxes, and zero in palletized bin boxes.

More apples were probably pilfered from the

BN-2753; BN-2754; BN-2755

Figuke 5.—Condition of palletized tray-pack boxes on
arrival in Europe: A, Arrival at dock, note slack-
ness of straps; B, closeup of serious damage to one
box in bottom layer; C, double stack of palletized
tray-pack boxes, note damage to boxes in top layer
of lower pallet load.

nonpalletized tray-pack boxes because (1) the
cover could be removed, (2) the box could be
stove in without fear of large numbers of apples
falling out, and (3) at times, accidental damage
to the container left the apples exposed.

For palletized tray-pack boxes, however, the
cover could not be removed. But an individual
box could still be stove in and, at times, acci-
dental damage left apples exposed.

The bin boxes were not seriously damaged. Per-
haps the fear of large numbers of loose apples
falling out deterred deliberate attempts to damage
these boxes.

12 U.S. DEPT. OF AGRICULTURE MARKETING RESEARCH REPORT 945

BN-2756; BN-2757; BN-2758; BN-2759

Ficurr 6.—Condition and handling of containers on arrival in
Europe: A, Tray-pack box showing container damage; 5,
handling tray-pack box at dock; C, bin boxes on arrival; D,
palletized tray-pack boxes being loaded on trucks at a London
dock,

TRAY-PACK AND BIN CONTAINERS FOR OVERSEAS SHIPMENTS OF APPLES 13

Taste 6.—Percentage of small-sized Red Deli-
cious, Golden Delicious, and Newtown apples
bruised in shallow-cup tray-pack containers, pal-
letized and nonpalletized, and in palletized bin
boxes during transit, by degree of bruising in 4
boat shipments, from Oregon to Stockholm, Sweden,
1966 and 1967 3

Shallow-cup tray-
packed boxes

Degree of _| Bin box,
bruising 2 palletized
Non- Palletized
palletized
Percent Percent Percent

Slight! 2s2 eee 19. 4a 19. 9a 33. 2 b
Damage... _____ 3. 7a 2. 2a 8.8 b
Serious=- 252-2 0 0 0

Lotalae = Zoe 22, A 42.0

' Average of apple box sizes 163, 150, and 138. Means
within a row followed by different letters are significantly
different at a 5-percent level. Skin discoloration, skin
breaks, and cuts were negligible.

? Degrees of bruising are: Slight bruising injury between
\%4 and } inch in diameter and less than \% inch in depth;
damage bruising injury between 4 and 1 inch in diameter
and less than \ inch in depth; and serious bruising injury
over 1 inch in diameter or more than inch in depth.

TRADE REACTION

Importers and wholesale receivers expressed no
preference for the shallow- or deep-cup trays.

These receivers were mixed in their reaction to
palletized vs. nonpalletized boxes of apples. They
reacted unfavorably to missing or loose straps,
broken pallets, and disarranged box layers. But
they were favorable to the ease and quicker
loading, unloading, and handling of pallet loads
that arrived in good condition.

Importers and wholesale receivers who pre-
package apples reacted favorably to bin boxes.
The most favorable comment heard for these
boxes was the absence of paper wraps or trays to
handle and throw away. Some complaints made
about bin boxes were that (1) they were too small
(some apple-exporting countries have used bins
holding 2,000 pounds of apples), (2) they had to
be tipped over and the apples dumped out (side
or bottom openings would be preferred), and (3)
they did not have enough ventilation holes to
assure adequate ventilation.

TABLE 7.—Percentage of small Golden Delicious apples bruised in nonpalletized and palletized shallow-cup
and deep-cup tray-pack boxes during transit, by degree of bruising, in 2 boat shipments of Washington
apples and 3 boat shipments of Virginia apples to European markets, 1967 and 1968 }

Shallow-cup tray-packed

|
Deep-cup tray-packed boxes

boxes
Degree of bruising ?
Nonpalletized Palletized Nonpalletized Palletized
Percent Percent Percent Percent
2 shipments from Washington:
Dlightee. See Sik Ce ett oS nes at se eS 67. 1 iso 77.9 82.9
Damages). 2 Sue iGes 2 cls ale ate een Soe ne 25.7a 15.5 b 15.2 b 11.3 b
POCMO UR as Nese paint ee ee Sethe no ne Secccea awe 0 0 0 0
MO GAN = ote tte ey aoe weber and he an 92.8 93. 1 93. 1 94, 2
3 shipments from Virginia:
Co) 9 eee or aE ont DO eo 75.1 76. L 76. 9 74. 0
BBY 0012) 21:51 On ate Sapa RD pl es SRS ee ee 13. Oa 9. Zab 6.7 b 4.8 b
DEPIOUS LE See a tek oe A Be ct ee 1.5 .2 6 .2
LOGAN pre Settee de ah 89. 6 86. 0 84, 2 79. 0

' Average of apple-box sizes 163, 150, and 138 from Washington, and box size 150 from Virginia. ; ;
? Degrees of bruising are: Slight bruising injury between }4 and \4 inch in diameter and less than }§ inch in depth;
damage bruising injury between !4 and 1 inch in diameter and less than \% inch in depth; and serious bruising injury over

1 inch in diameter or more than inch in depth.

’ Means followed by the same letter are not significantly different at the 5-percent level. Skin discoloration, skin

breaks, and cuts were negligible.

U, S. GOVERNMENT PRINTING OFFICE : 1972 O - 456-773

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