Denmark-based logistics provider Damco says greater volumes of South American fruit volumes are finding their way into Asia, as output grows and demand, particularly from China, rises.
“If you have the right variety of the right product at right time of the year, I don’t see South America having a problem commercialising their produce in Asia,” Olé Shack Petersen, head of Damco’s global reefer activity, told Fruitnet.com.
“What we have seen lately out of Chile and Argentina is an incredible increase in blueberry and cherry volumes, and Asia is an enormous consumer of these produce.”
As a result, Damco’s Chilean temperature-control operation and South America-Asia sea-air business (whereby cargo is first sea-freighted then air-lifted to desintation) is growing exponentially.
“We are probably experiencing a 25-30 per cent growth rate each year at Damco for our sea-air solution,” said Petersen. “Not only is the volume growing a lot, but also because the market of Asia is growing. So volumes that would normally find their way to Europe or North America, are finding their way to Asia.”
But a new trend for Chilean cherries since 2010/2011 is exclusive sea-shipment to Asia mid-season, with great success, Petersen added.
Damco says it is constantly tapping into different business sectors and increasing its volumes.
In 2011, Damco took on retail giant Tesco’s direct produce sourcing from Latin America and the US West Coast to Asia.
“We are responsible for the overall supply solution: we collect, containerise and ship it to Tesco’s main Asian markets,” Petersen said. “We had some trials in 2010, then in 2011 it became good volumes and we extended our coverage.”
