While Asoex and Fedefruta were referring to the possible short-term reduction in freight rates, the shipping companies announced a new 25 percent increase in rates: "There is not - and cannot be - an agreement regarding values, increases, or any type of modification of shipping rates," said Camport. What was the reason for this situation? Let's recap.
The last few weeks have been marked by events surrounding shipping rates; it all began on November 5 when the Chilean Exporters Association, Asoex, announced that the value of maritime freight could fall in the short term.
«The global macroeconomic situation is reducing demand for maritime transport and, therefore, it is estimated that sooner or later it will put downward pressure on rates. In this sense, we trust that these will remain at competitive levels for fruit exporters, so that they can meet their international commitments and maintain our country's reputation as a food power." commented the President of Asoex, Iván Marambio.
The news was very well received in the cherry industry, considering the constant increases in freight rates during the last few seasons.
«Shipping companies are our partners in the export process and we are working in an aligned manner. We are confident that, together, we will be able to adequately face the logistical challenges of the sector. In fact, we are already working on a plan with 12 measures proposed to the government that include actions to improve the management and operation of port terminals during the high season,” Marambio emphasized. Along those lines, he added that “There is no basis to justify maintaining high prices”, said the President of Asoex on November 5.
Jorge Valenzuela, President of Fedefruta, also referred to the situation of shipping rates on the same date: “According to calculations by the National Agricultural Society, fruit growers paid more than US$14.635 million extra in maritime transport last year due to the increase in costs, so we are confident that the situation can be reversed this season, as we cannot continue to aggravate the logistics crisis.”
New increase in shipping rates
Nine days have passed since the announcement by Asoex and Fedefruta about the possible short-term reduction of maritime freight rates, when both entities, together with the National Agricultural Society (SNA), had to meet urgently to analyze the increase of 25% in refrigerated freight rates, which was announced by the shipping companies and which is added to those made in recent times.
The new increase, which is expected to begin this November, has disconcerted fruit producers and exporters represented by SNA, Asoex and Fedefruta, who pointed out that worldwide maritime freight rates have fallen sharply.
"The news about the rise in maritime freight costs surprises and worries us, especially because there is no basis to justify it, since at an international level there is evidence of a contraction in demand for ships, leading to a fall in freight and container prices." The news about the rise in maritime freight costs surprises and worries us, especially because there is no basis to justify it, since at an international level there is evidence of a contraction in the demand for ships, leading to a fall in freight and container prices," said the President of Asoex on November 14.
Marambio said he was surprised by these increases, since together with the Chilean Maritime and Port Chamber, Camport, they developed a plan with 12 measures to improve the management and operation of port terminals during the high season, which they submitted to the authorities.
Once these statements were known, it was the Chilean Maritime and Port Chamber itself which, through a public statement, responded to the questions of the agricultural sector regarding the increase in rates.
«There is not - and cannot be - an agreement regarding values, increases, or any type of modification of shipping rates. Prices are established exclusively by negotiations or price offers that are accepted (or not) between shipping companies and exporters, according to supply and demand, and respond to the characteristics of the route, terms, type of contract, volumes, dates and the availability of ships and containers for dry or refrigerated cargo.
Together With ASOEX, Camport presented the Government with a package of 12 measures, which only include actions to improve the management and operation of port terminals during the high season, and in no case price agreements or tariff commitments for shipping freight. (See full statement)
Asked about this situation, Iván Marambio, President of Asoex, described the new increase as untimely and not in line with what is happening worldwide regarding shipping rates.
«The truth is that we have worked a lot this year with Camport in a very united way, we respect their position, obviously they defend their union and we understand that, we have only made known what has to do with a surprise increase in freight rates, made at a very bad time and that has no relation to what is happening in the world. The price of maritime freight has been falling in all parts of the world and this is not the same as what is happening here, where we find that not only are they stable compared to last year, which was already very high, but they are announcing an increase that is untimely..
Representatives of Asoex, SNA and Fedefruta indicated that a recent report by the international maritime trade consultancy, Drewry, indicates that the Freight Index continued to decline during October and is expected to continue to decline in November, in addition to the drop in container costs. Likewise, the Shanghai Export Containerized Freight Index (SCFI) also notes a drop in maritime freight rates.
"There is a mess there regarding freight rates, because some have gone down, but there was an increase compared to the quotes that we had not considered; we are in talks, I hope it can be resolved in a good way", concluded Jorge Valenzuela, President of Fedefruta, when asked about the situation by Smartcherry.
