Growers and exporters in Chile describe the situation as a "big crisis" for their industry as over 1,300 containers with around 5 million boxes of cherries are on the delayed vessel Maersk Saltaro. Chilean and Chinese industry experts said these cherries could've fetched between $60-$130 million in the Chinese market if it all arrived before the critical Chinese New Year sales period. The ship is now set to reach its biggest market in China on February 6. This big delay coupled with 51% higher cherry export volumes from Chile to China has caused an unprecedented crisis for the Chilean cherry industry.
One of the Maersk Cherry Express ships with Chilean cherries at the start of the 2024/25 season.
Luis Ahumada, Director of Grupo Los Olmos and Executive Director of their export company Exportadora Los Olmos, who are large growers and exporters of Chilean cherries and other fruit, noted: "First and foremost, being realistic, the adjustments we are seeing in the cherry industry have been expected for at least three years. It was not sustainable to grow indefinitely with cherries, especially in a near single-market dependency. Secondly, up until last season, cherries have been an extraordinary business and a significant contributor to Chile's fruit industry — something unparalleled in the history of global horticulture. These adjustments in volumes and quality are normal within the industry. This is part of the cycle, and cherries will continue to be a profitable venture for Chilean growers for many years to come."
Ahumada commented further on the long-delayed ship: "Regarding the recent incident with the stalled vessel, while rare, such events are not entirely impossible. The ship in question is carrying 1,318 containers, equivalent to nearly 5 million boxes of cherries — an immense volume. The entire industry is now awaiting proper compensation from Maersk, one of the world's leading shipping companies. It is imperative that they rise to the occasion and address this mechanical failure. This situation serves as a reminder of the importance of resilience and adaptability in a dynamic industry like ours."
Due to the sensitive nature and potentially huge losses of millions of dollars, many other individuals and company spokespeople contacted were not willing to be mentioned by name. A large exporter from Chile who has several containers on the ship said the big crisis on the vessel is a huge concern for them. "I have some containers there on the boat and have already been in touch with the insurance company. We will see how it will be finalized. I heard Chinese buyers will just celebrate some days but will go back to the market to work. There's still a big volume of fruit to be sold."
In what is often mentioned as the biggest internal movement of people with hundreds of millions of Chinese people taking time off to travel to their home cities to visit family, it remains to be seen if there will be enough customers at the markets to buy the cherries once it arrives. Industry insiders note that the post-Chinese New Year's period has traditionally been marked with slower sales, discounts, etc. An exporter noted, "We will wait and see if customers return to buy the fruit."
Another large exporter from Chile noted: "It is a very difficult season because we have 51% more fruit, which is a very challenging moment. There are also late cherries coming as well from the South of the country. This fruit is sweet and nice, but it's going to arrive after the Chinese New Year. To work in the fruit industry is always a big challenge and this is not going to be the last one."
A Chinese importer noted: "Most of the industries are affected. That vessel is one of the biggest of the season, so it's really a major disaster. This year, where the cherry price is lower than the previous season, I think the market value in China could be like $100 million, it could vary a lot between $60 to $130 million".
For more information:
Luis Ahumada
Exportadora Los Olmos
Tel: +569 9 8855242
lahumada@losolmos.cl
www.grupolosolmos.cl/exportadora/