The pandemic has so far generated a series of repercussions around maritime transport; although during this season the processes have been regularized compared to the previous campaign, the Covid-19 factor continues to add uncertainty to the logistics processes.
Container prices of over USD 15,000 per unit, almost double that of last year, labor shortages, congestion at ports, among other factors, have exerted additional pressure on cherry exports during the current campaign.
Although last season presented even more complex problems, considering the level of infections and movement restrictions due to the pandemic, which impacted the availability of labor, logistics have not yet been fully regularized. In China, there are already cities under total quarantine, so Covid-19 continues to generate uncertainty. Therefore, reaching the destination with the fruit in good condition and in optimal times has become the great challenge of the season.
“A season that started late by a week, a week and a half, and that has meant that there is a peak in this minute of processes, with a lack of manpower, a significant increase in materials according to what the containers tell me and the increase that was practically double that of last year in maritime rates; last year it cost USD 7,500 and this year we are between USD 12,000 and 17,500 to Asia.”, explained Lorenzo Swett, Manager of the Reefer Division of Senator International Chile SA
A rate increase that fortunately the cherry industry can afford, significantly reducing its profits, but supporting this increase, unlike other fruit species.
Another complication of recent seasons has been the shortage of containers; shipping companies, in general, have not been able to position containers gaps from Asia in our country
“They prefer a container that costs between USD 15 to 25 thousand for dry cargo than to bring one that will cost between USD 200 - 150 between loading and unloading, empty container. What has been done in other seasons is that ships come with 3 thousand, 4 thousand empty containers to position themselves in Chile, on the coast, to be able to take out mainly cherries and blueberries from Chile and blueberries from Peru, something that this year has been very scarce. Although the ships have the ability to load a certain number of containers, there are not enough units available to be able to provide the service that all the fruit requires,” Swett explained.
Last year, 70 million boxes of cherries were shipped and, according to estimates by the Chilean Fruit Exporters Association, Asoex, an increase of 2.6 % is expected during the 2021-22 campaign.
“Regarding volumes, there has been a lot of effort to try to load all the cargo, but we have not been able to load everything that has been requested; large companies have called us – hey, please load something for us… one, two, 10, I have 30 containers that I cannot get out of,” commented the Manager of the Reefer Division of Senator International Chile SA
Added to this are the swells that have been more intense than in other years on our coasts and which often prevent ships from approaching and stopping to receive cargo.
“In terms of port congestion, that has continued, but there has been a greater number of storm surges, which has caused ports to delay receiving ships at port, the itineraries have also deteriorated a lot, ships that were supposed to arrive here in week 50 definitely did not make it and were postponed to the following year; this year compared to last year, I would say that last year was a little more comfortable, it has never been comfortable, there are always space restrictions, but we were able to handle the volume we had in November, December and January much better, compared to this year,” said Lorenzo Swett.
Demand for air freight marked the start of the 2021-22 cherry season; the first cherries sent to China, which left in mid-November, were the early Royal Dawn, Brooks and Santina varieties from northern Chile. Of course, this time, the big names in the cherry industry were not the protagonists of arriving early at their destination with the best of the season.
“Although there was a great demand for shipment, the large exporters reduced their volumes a lot; with little space, they ran the risk of reaching a market that may be hot, because the prime ones have always paid well, but let us not forget that this year a plague appeared on the scene that has always been in Chile and that has the exporters very scared; the large ones, as they have more experience, reduced their important volumes in air exports and gave quota to the medium-sized ones, other exporters of cherries and blueberries,” said Lorenzo Swett.
The increase in sea rates was accompanied by air rates; during the current season, the latter rose on average by USD 1.5-2 per kilo. In addition, according to the Reefer Division Manager of Senator International Chile SA, there is an additional problem that has made the current logistics scenario even more complicated than last season.
“I would say that there are worse conditions; we also move around 3 thousand trucks and in Chile the same thing is happening that happened at Christmas and New Year last year with the truck drivers, not with the trucks… there are enough trucks, but there are no truck drivers who can drive them, there are many people who stay at home with the IFE, others do not have a contract, a disaster,” Swett concluded.
