The issue really is in your foot clearance. The short Arclite complicates this some. The Dahon Journey and Ultimate racks have a taller top shelf so they raise the panniers more from your heel area.

What I have done is make a Pannier set that is adjustable in terms of the hook platform, so I can twist it or balance it. This is a picture of the "Bike Pilot" as I call it when I put it on a front Handlebar stem where it also works nicely I feel. I need to find a picture of it in use on the Arclite and other racks (I may just shoot a few pics).

https://nomadic.net/shop/cycle-trave...-pilot-pannier

I do only have 2 of these available just now and likely I should adjust my price on them when I go make some more. I made about 10 of them initially and they were based upon one of my kayak bags. They are roll closure waterproof and weigh about half of nearly any other pannier I have bumped into.

For an effective shopping bag I do have the Dahon Shopping Pannier which works quite well. A little tight on the clearance with the Arclite rack but super convenient and effective. I have a few of these available at my store, Nomadic Inc, in Boulder CO. $50 each for both versions.