“It used to be that I either have an order for fruit or have fruit available to sell, but now I have to make sure I can find a container first before taking and asking a producer to fill an order,” says Gary Britz, MD of South African exporter ELE Trading. They specialise in citrus exports and do limited volumes of table grapes, apples and pears.
Britz comments as the global container shortage continues while “shipping freight rates are increasing and not showing enough of a return to normal”. He expects the global shortage “to continue until next year”.
With the South African table grapes season over the halfway mark and the pear season just started Britz is already following market movements of these commodities closely as he braces for the citrus season to start later this year. “There is some demand for table grapes from South-East Asia. They are asking for some of the latest varieties of Sweet Globe, Sweet Joy, Autumn Crisp and even Midnight Beauty. Out of the Middle East there is a demand for Rosemarie and WBC pears. On the apple side the sizes are not necessarily there for the early varieties,” explains Britz.
Britz says the biggest challenges for fruit shippers and producers out of South Africa is the ever increasing costs. “Prices from wholesale and retail markets in key export markets like Europe and the UK are not keeping up to cover the increasing input costs like fuel and labour. Shipping costs have increased considerably from $1800 to $3 800 for the Far East with further increases to $4 800 per container on the cards.”
According to Britz other cost factors are dwell time in ports which were up to 5 to 8 days but have increased to between 11 and 14 days. “On top of this marine Insurances have withdrawn all the delay clauses, worldwide there is a big problem on arrival delays. I explain to growers that exporters cannot be held responsible for this,” says Britz.
On the citrus side Britz says they are watching the shipping and other factors closely, but they expect another challenging season to come. “Due to the longer Covid-19 recovery for wholesale and retail markets as well as the potential outfall of Russia’s actions we are watching developments closely,” says Britz.
“We already have strong interest for South African lemons from South East Asia, which bode well for the coming SA citrus season,” Britz concludes.
For more information:
Gary Britz
ELE Trading
Tel: +27 21 976 0604
Email: [email protected]
https://eletrading.co.za