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Logistics

Suez risk highlights need for just-in-time cargo resilience

23 Jan 2025 - by Eugene Goddard
 Source: Oneworld Shipping Services
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China has developed a sweet tooth for juicy pears from Belgium, respectively known as poires Conférence and Conferentieperen by the Benelux country’s French and Flemish speakers.

Unfortunately, delayed delivery of time-sensitive cargo has added a bitter taste to Asia-bound fruit.

This situation highlights the pressing need for innovative solutions to sustain just-in-time logistics, especially in the face of disruptions to traditional shipping routes. One company addressing this challenge is Belgian Fruit Valley (BFV), which has been actively promoting Conference pears in the Asian market.

The efforts to market Belgian Conference pears in China date back approximately a decade but faced significant setbacks during the pandemic.

According to Marc Evrard from BFV, demand had been increasing annually since the campaign began, but the pandemic in the early 2020s caused a major interruption. Although trade continued, strict restrictions made it difficult to maintain momentum. Evrard noted that post-pandemic China had undergone significant changes, including a reorganisation of its internal systems, which made reconnecting with consumers more challenging. To bridge the gap, BFV has been focusing on a dual strategy involving an online presence and in-store promotions to reintroduce its fruit to Chinese customers.

Evrard explained that the promotional activities were meticulously timed to coincide with the lead-up to Chinese New Year, a period of high demand. Large shipments were sent at the end of December and most are expected to have arrived by now. However, logistical issues continue to pose challenges.

Evrard highlighted a noticeable decline in the reliability of shipping companies, a trend that began with disruptions in the Red Sea in January 2024 and has worsened over time. He said punctuality problems had reached a peak by September, making just-in-time deliveries increasingly difficult.

Despite these challenges, the quality of this season's fruit remains high, ensuring that the produce itself is not compromised. However, Evrard pointed out that delays created significant complications, as schedules with Chinese importers and retailers were planned weeks in advance to ensure delivery aligned closely with sales dates. Importers specify the calibre of fruit required on a weekly basis, necessitating precise coordination. Any disruption to this schedule introduces additional hurdles for all parties involved.

Although there has been a ceasefire in Gaza and assurances from Houthi rebels that foreign ships will no longer be targeted, Evrard remains cautious about immediate improvements. He emphasised that even the negotiators involved in these agreements could not provide guarantees, making it difficult to anticipate swift changes in shipping operations. He added that while a resumption of free passage through disrupted routes could reduce transit times by up to ten days and lower costs, the situation remained uncertain. Even if the shipping lines resumed normal operations, it would take time to stabilise and return to pre-pandemic levels of efficiency.

This ongoing uncertainty underscores the challenges of navigating global logistics and reinforces the importance of finding resilient solutions to support international trade.

Original source: Fresh Plaza.

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