Suppliers and distributors hope for speedy resolution to dispute as shipments are diverted – some to destinations outside country
Some of the Americas’ leading fresh produce companies have told Fruitnet they are working on alternative logistical options to cope with a strike by port workers along the country’s eastern and Gulf seaboards, but that they fear the potential impact of a longer and more protracted shutdown of cargo movements.
“We are doing what we can, but there are limited options at this moment,” explained David Krause, chief executive officer at Frutura, which owns US-based importer-distributors Dayka & Hackett, TerraFresh Organics, and Sun Belle. “The impact will begin to be serious if they do not resolve the strike quickly.”
According to Krause, companies that usually bring produce into the affected ports have taken a three-pronged approach to cope with the disruption: some have shifted deliveries to other ports “if possible and available” along the East Coast; some have sent products to the West Coast, again where feasible; and other have been forced to divert fruit to other countries.
Frutura has employed all three contigencies, Krause noted. “All this is going to lead to delays in the supply chain, additional costs, and potential quality of arrival issues if deliveries are delayed,” he added.
Too soon to tell
Rafael García, logistics manager at Argentinean supplier Salix Fruits, said the company’s shipments of citrus – mainly fresh oranges – to the Port of Philadelphia had been directly affected.
“We had planned to receive several shipments throughout this week, and unfortunately the ships continue to delay their docking and unloading,” said logistics manager Rafael García. “This directly affects us with the forecasts and weekly demand that we have with our clients.”
Over the past few weeks, he said, the company had done everything it could to get shipments through to customers and comply with commercial agreements.
“We hope that [the parties in dispute] can reach an agreement as soon as possible, so the situation is resolved and we can return to our regular operations,” said García. “Until the situation is resolved, I think it is difficult to draw conclusions.”
Tremendous damage
In Chile, the president of producer association Fedefruta, Víctor Catán, said the “regrettable” port strike could have a major impact on his country’s exports to the US, and called on all parties to resolve their differences so the ports could continue to function.
“We believe that tremendous damage is being done to the American population that is deprived of goods and food, in our case making it impossible for the entry of top-quality fruit that supplies the different supermarkets in that country,” he commented.
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