THE IMPACT OF FREIGHT PRICES ON PEPPER MARKET

 

We got this important information from the last RGB Pepper Market Report

Since last year, deficiency in shipping containers alongside the growing port congestion issues have created an unfavorable impact and disruptions to all exporters particularly from Asia.

Routes that are mostly affected are shipments bound to USA and EU ports with rates that are
now up of about 438%- 950% respectively from our last noted rates in June 2020.

If before large exporters were having an advantage to plan shipments ahead of time with contracted rates from carriers, nowadays situation is completely distorted. The reportedly China’s aggressive tactics to bring back empty containers became even more challenging for USA/EU exporters.

Europe specifically Hamburg port is having a severe congestion issue with major carriers that are now compelled to re-route containers to other available EU ports such as Bremerhaven and Wilhelmshaven as end of carriage obligation.

The desperation to export goods abroad often leads seller to commit and booked premium rates just to acquire containers. Current situation for June: Another GRI rates implementation on June 15 with a critical space availability on the demand that is currently exceeding the current supply.

Specifically in Brazil freight rates where little affected if any, until now, but it started increase from the beginning of this month.
Routes and availablity of vessels and containers where altered already before, with changes happening on already contracted and booked vessels and ports, causing delays and dificulties to plan shipment and arrivals.