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Supply Chain Disruptions: Importers of Avocados, Ginger, and Grapes Nervous as Shipping Delays Worsen

NOSBoxes of ginger

NOS Nieuws•vandaag, 17:31

Dutch importers of avocados from Kenya, ginger from China and grapes from India are becoming more nervous by the day. The attacks by Houthi rebels in the Red Sea mean that ships are overturned for days and the expiration date of the products they transport is approaching dangerously close.

Bert van Gelder still has to wait for days until the first containers of ginger from China arrive in Barendrecht. Normally his company Sawari Fresh would have received the ginger this week, but now it will take at least another week and a half.

“The skin of the ginger is quite thin, so it can spoil if it is in transit for too long,” says Van Gelder. “We are concerned about that. We have to look carefully at it when it comes in. It can quickly rot in the supermarket. Then it is a much bigger problem.”

NOSProcessing of ginger at Sawari Fresh

These are a few examples of the many products waiting for the ships. The number of container ships taking the route through the Red Sea has fallen by more than 90 percent, according to figures from research agency Clarksons.

They often choose the longer route through South Africa, even though it takes them at least ten days longer to travel. In any case, they will certainly be able to escape an attack by Houthi rebels and ensure that the cargo and crew arrive in one piece – even if it is delayed.

Oil tankers usually sail via the Red Sea Route.

NOS

The longer transport time is not only annoying for fruit importers waiting for their avocados and ginger, it also makes transport more expensive. Prices for transporting freight by sea container have been skyrocketing since December. Transporting a product by sea is now twice as expensive as it was a month ago.

According to experts, the problems can have an impact for much longer. “Some ships have been waiting and only then started sailing,” says Rico Luman, economist at ING. “This may cause traffic jams and additional delays, because the ships will also be late returning to Asia.”

NOS

In an attempt to restore calm in the Red Sea, the United States and the United Kingdom have bombarded dozens of Houthi rebel targets in Yemen. The Netherlands supports the action. Yesterday afternoon, Minister Van Leeuwen of Foreign Trade explained this action to Dutch shipowners.

These Dutch shipowners now have even more concerns. Because the Netherlands supported the attack, ships may now be at greater risk if they have a Dutch flag or a Dutch manager.

“We fear the worst,” says director Annet Koster of the Royal Association of Dutch Shipowners. “How can it be that the Netherlands is the only EU country to have supported this attack and that the rest of Europe does not? As a result, we come under a magnifying glass more than other countries.”

Grapes from India

For the time being, shipping companies will continue to detour. This will have consequences for the prices of the fruit, even though several fruit importers are now looking at other options. Bert van Gelder, for example, is trying to import more ginger from Peru and Brazil. It takes weeks before those orders arrive in the Netherlands. “We are also trying to grow ginger in Dutch greenhouses. That is a success, but it still concerns relatively few pieces.”

In January, importers mainly bring grapefruit, garlic and ginger to the Netherlands. Shipping companies usually transport them via the Red Sea and the Suez Canal. According to trade organization GroentenFruit Huis, around 25 million euros are involved in January alone.

It gets busier in February, when grapes are usually loaded from India onto ships to the Netherlands.

NOSThe changed sailing routes
2024-01-13 16:31:12
#products #longer #ship #due #Houthi #attacks #Red #Sea

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