Why lower ocean freight costs are a massive win for Australian producers

Western Australian table grapes will be carefully packed into shipping containers and exported to China over the next few weeks, improving global shipping container rates and transit time being a welcome benefit at harvest time for grape growers.
Key Points: Global shipping rates are falling, giving exporters hope that they will be able to access more global markets. expenses, reducing demand for ocean freight
Due to COVID-related port congestion, exorbitant shipping costs and a shortage of containers, commodity exporters including cereals, fruits, vegetables and meat, have struggled to get produce to market over the past two years.
But there are signs that this year's harvest could flow more smoothly to world markets.
In the Swan Valley, near Perth, grape picking is underway as WA's largest table grape grower Fruitico has begun harvesting operations in southern WA.
Roger Fahl of Fruitico says the harvest of table grapes marks the start of the company's export program (ABC News: Jessica Hayes)
Chief Executive Roger Fahl said the company has pre-booked about 180 specialized shipping containers for its exports.
He said container availability has improved and shipping rates have come down significantly.
"We have reserved ready-to-go containers. More than 25 containers of fruit will likely go to China of our red seedless variety, which will go to Shanghai and Beijing,” he said.
"We will also be shipping Celebration, our seedless red variety, to the East Coast and supplying our domestic customers in Perth."
About 60-70% of Fruitico's harvest is sold overseas, which equates to around 400,000 boxes of grapes.
China is an important and valuable market for the Australian grape industry table. (Supplied: Tony Kundid)
Mr. Fahl said the containers would still be transshipped through Singapore, a process that caused major delays last year for some shipments, costing the company $180,000 in fruit. loss of quality.
However, he was optimistic that less congestion in Singapore would mean transshipments would run more smoothly this season.
"We have to get a lot of this product overseas. It's in demand, our brand is well known in Asia. We just hope we can get it through the system and everything is flowing," Mr Fahl said.
Bottlenecks at the port of Fremantle have also caused delays for Australian exporters...

Agrotech Feb 15, 2023 0 50 Add to Reading List

Why lower ocean freight costs are a massive win for Australian producers

Western Australian table grapes will be carefully packed into shipping containers and exported to China over the next few weeks, improving global shipping container rates and transit time being a welcome benefit at harvest time for grape growers.

Key Points: Global shipping rates are falling, giving exporters hope that they will be able to access more global markets. expenses, reducing demand for ocean freight

Due to COVID-related port congestion, exorbitant shipping costs and a shortage of containers, commodity exporters including cereals, fruits, vegetables and meat, have struggled to get produce to market over the past two years.

But there are signs that this year's harvest could flow more smoothly to world markets.

In the Swan Valley, near Perth, grape picking is underway as WA's largest table grape grower Fruitico has begun harvesting operations in southern WA.

Chief Executive Roger Fahl said the company has pre-booked about 180 specialized shipping containers for its exports.

He said container availability has improved and shipping rates have come down significantly.

"We have reserved ready-to-go containers. More than 25 containers of fruit will likely go to China of our red seedless variety, which will go to Shanghai and Beijing,” he said.

"We will also be shipping Celebration, our seedless red variety, to the East Coast and supplying our domestic customers in Perth."

About 60-70% of Fruitico's harvest is sold overseas, which equates to around 400,000 boxes of grapes.

Mr. Fahl said the containers would still be transshipped through Singapore, a process that caused major delays last year for some shipments, costing the company $180,000 in fruit. loss of quality.

However, he was optimistic that less congestion in Singapore would mean transshipments would run more smoothly this season.

"We have to get a lot of this product overseas. It's in demand, our brand is well known in Asia. We just hope we can get it through the system and everything is flowing," Mr Fahl said.

Bottlenecks at the port of Fremantle have also caused delays for Australian exporters...