Global Shipping Crisis Intensifies
Source: The DairyNews
Global Shipping Crisis Intensifies, Forcing New Zealand Producers to Seek Alternative Routes
The ongoing shipping crisis, triggered by Houthi rebel attacks in the Red Sea and water scarcity issues in the Panama Canal, is escalating, posing significant challenges for New Zealand exporters. With many ships rerouting around the Cape of Good Hope to reach Europe, the journey to major markets is being extended by an extra two weeks.
Silver Fern Farms, one of the affected companies, revealed that the situation has no easy fix, and disruptions in the Red Sea area could persist for months or even years. According to Peter Robinson, GM Sales at Silver Fern Farms, shipping companies are passing on the re-routing costs, resulting in additional supply-chain expenses for products in transit.
The impact extends to the Middle East, where the main port into Saudi Arabia, Jeddah, is virtually inaccessible. Instead, ships are unloading at Damman Port in the Persian Gulf, requiring containers to be transported an additional 1600km inland to reach their destinations. Robinson emphasized that the return of empty containers to Damman Port further adds to the financial burden on importers.
Silver Fern Farms is closely monitoring the timeliness of refrigerated containers due to extended land and sea journeys. While they have successfully managed container availability thus far, the company acknowledges the potential for continued disruption in the region.
In response, Silver Fern Farms is collaborating with its global freight partner Kotahi to navigate these challenges and ensure the timely delivery of their products to customers in the UK, Europe, and the Middle East. The complexities of the shipping crisis highlight the need for adaptability and strategic planning in the face of ongoing global disruptions.
Silver Fern Farms, one of the affected companies, revealed that the situation has no easy fix, and disruptions in the Red Sea area could persist for months or even years. According to Peter Robinson, GM Sales at Silver Fern Farms, shipping companies are passing on the re-routing costs, resulting in additional supply-chain expenses for products in transit.
The impact extends to the Middle East, where the main port into Saudi Arabia, Jeddah, is virtually inaccessible. Instead, ships are unloading at Damman Port in the Persian Gulf, requiring containers to be transported an additional 1600km inland to reach their destinations. Robinson emphasized that the return of empty containers to Damman Port further adds to the financial burden on importers.
Silver Fern Farms is closely monitoring the timeliness of refrigerated containers due to extended land and sea journeys. While they have successfully managed container availability thus far, the company acknowledges the potential for continued disruption in the region.
In response, Silver Fern Farms is collaborating with its global freight partner Kotahi to navigate these challenges and ensure the timely delivery of their products to customers in the UK, Europe, and the Middle East. The complexities of the shipping crisis highlight the need for adaptability and strategic planning in the face of ongoing global disruptions.
