Southern Hemisphere Association of Fresh Fruit Exporters Concerned Over Shipping Prices
Brussels, Belgium-
By ANUK Staff
3.1.13
The Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE), a union of significant Southern Hemisphere fruit growing countries, remains deeply concerned about the announcement by several shipping companies to raise freight rates as of January 1st 2013. A collective perspective shows the impact the increased rates will have on the fresh produce business, the association said in a statement.
Members of SHAFFE are currently exporting around 8.7 million tons of fresh fruits overseas, mostly by sea freight. Considering the increase in shipping rates by up to $1,500 or around 30% per container would mean a total added cost for the Southern Hemisphere up to $650 million.
At the individual level, this could mean as much as a $1.50 increase per 18kg box of fruit delivered to destination. This would mean an average 8.3% addition to the total product cost for the bulk of the shipped fresh produce. This consequently could lead to an 11% increase on total value per carton of apples, a 10% increase on total value per carton of citrus, or a 4.5% increase on total value per carton of grapes.
The increase severely affects the sustainability and competitiveness of the fresh produce industry, and is even more detrimental for smaller operators. The rate variation is abrupt and has far reaching consequences for the sector with limited time to react, adapt to these increases, and have them absorbed at once by the supply chain down to consumers.
The drastic prices raises will have a serious effect of the international supply of fresh produce and in particular in regard to off sesason fresh produce originating in the Southern Hemisphere countries represented byy SHAFFE. The association calls on container shipping lines to reconsider their rate increaeasesw which ultimately endanger the long-term sustainability of the Southern Hemisphere fresh produce industries.
Southern Hemisphere Association of Fresh Fruit Exporters
