Tensions in the Red Sea continue. After several attacks on container ships, some carriers have decided not to use the Suez Canal, diverting their vessels via South Africa and the Cape of Good Hope instead, thereby extending the transit time by two weeks. Consequences: rising prices and disruptions to the supply chain, for example in the avocado market, which could experience shortages, a "highly speculative" trend, and a consequent surge in prices.
What about Kenya and Tanzania?
While Spain, Morocco, Portugal, and Israel are reducing their supplies in an attempt to extend their campaigns as much as possible, "We are trying to turn to other origins such as Kenya and Tanzania to fill the gap." The problem? "Avocado container shipments for these two origins are currently at a standstill", explains François Bellivier, Capexo's Development Director. Shipowner Mærsk has decided not to stop, preferring "to maintain reefer shipments from the Chinese market to Europe."
Alternative origins?
"We're going to try and find alternatives. Can we turn to Mexican products? That's unlikely, as most Mexican avocados are expected to leave for the US market in time for the Super Bowl. In addition, the situation around the Panama Canal could thwart this scenario. "Drought has reduced water levels in the watershed, forcing a sharp reduction in the quantity and volume of shipping."
For more information:
François Bellivier
Capexo
Phone: +33 1 41 73 23 00
Cell: +33 6 75 03 76 54
[email protected]
www.capexo.fr