–The new increase, announced by shipping companies, coincides with the start of the export season for cherries and other fruits such as blueberries and nectarines.
–SNA, Fedefruta and Asoex call for reconsideration of the measure, especially in light of a global scenario that shows a contraction in the demand for ships and a drop in the prices of freight and containers.
An emergency meeting was held by the presidents of the National Agricultural Society (SNA), Cristián Allendes; of the Federation of Fruit Producers of Chile (Fedefruta), Jorge Valenzuela, and of the Association of Fruit Exporters of Chile (Asoex), Iván Marambio. The objective was to call for a halt to the 25% increase in refrigerated freight rates, which was announced by the shipping companies and is added to those made recently.
Representatives indicated that the new increase in maritime freight coincides with the start of the 2022-2023 export season for cherries and other fruits such as blueberries and nectarines, affecting shipments with increases once again significantly. The situation worries the fruit industry, since one of the most expensive destinations is Asia, where a good part of the national fruit arrives and is especially important for cherry exports, which in more than 90% are destined for China.
Regarding fresh fruit in general, the president of the SNA explained that “we see that the price of refrigerated maritime transport has risen in an incomprehensible way. Added to this is the fact that the shipping companies have not met the agreed deadlines, which has caused our products to arrive late and in poor condition, without assuming their responsibility for this poor service. For the start of this season, the rate would show an increase of almost 100% in the last two years.”
The new increase, which is expected to begin this November, has caused confusion among fruit producers and exporters represented by SNA, Asoex and Fedefruta, who point out that worldwide maritime freight rates have fallen sharply.
They also warn that this situation affects the profitability of agricultural production, especially of fresh fruit, and that the latter could see its continuity affected, putting at risk the more than 600,000 direct and indirect jobs that it generates.
In this regard, Fedefruta president Jorge Valenzuela said that “we are in a period of very difficult adjustment due to the last two seasons that have been very complex due to the rise in costs, the consequences of the logistical upheaval on the condition of the fruit and the income of producers. We have to lift the fruit season at all costs.”
He added that “in 2022 we have made known the effects that this type of action has had on the sector. We have held various meetings and have sat down to seek solutions with legislators and actors in the chain, but these unsustainable tariffs are suffocating Chilean producers and exporters.”
For his part, the president of ASOEX, Iván Marambio, pointed out: “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.”
Marambio added that this increase not only contradicts the signals from international trade, but also all the work that has been promoted together with the logistics chain. “We have been working with all the actors in the logistics chain to ensure a normal 2022-2023 fruit export season, where the shipping companies are also integrated, because we know that by working together we can face the challenges for the benefit of all. In fact, together with Camport we developed a plan with 12 measures to improve the management and operation of port terminals during the high season, which we delivered to the authorities, therefore, we are surprised, after a coordinated work, by the announcements about these increases,” he said.
International trade
The representatives indicated that a recent report by international maritime trade consultancy Drewry shows that the Freight Rate Index continues to show a decline during October and is expected to continue to decline in November. It adds that this is also reflected in the lower costs of containers. Likewise, the Shanghai Export Containerized Freight Index (SCFI) also notes a decline in maritime freight rates.
