As we navigate through the complexities of the global supply chain, we want to share the current challenges we are facing due to the ongoing shortage of empty containers at key ports in Peru, Honduras, and Colombia. This situation has had a significant impact on our logistics operations, and we believe it’s important to keep you informed on how this may affect our green coffee shipments.
General Impact:
Shipping Delays: The container shortage has led to extended wait times for container availability, causing delays in our shipping schedules. This, in turn, affects delivery times and supply chain planning.
Increased Costs: The scarcity of containers has driven up transportation costs due to higher freight rates, reflecting the imbalance between supply and demand.
Supply Chain Disruptions: These delays disrupt the smooth flow of goods, impacting both our suppliers and you, our valued customers.
Logistical Challenges:
Securing Containers: We are facing significant challenges in securing containers, with prolonged waiting times for bookings, automatic rollovers by shipping lines, and additional costs related to moving coffee to ports.
Adjusting Logistics: To manage these challenges, we have implemented measures such as requesting bookings three weeks in advance to mitigate delays.
Shipping Delays: Transit times have nearly doubled, with shipments from Peru to Canada now taking up to 60 days instead of the usual 30. We are actively managing these delays by adjusting our schedules and keeping you informed.
Cross-Country Coordination:
Country-Specific Impacts: The shortage is most severe in Peru, followed by Colombia. We are optimizing container availability by closely coordinating shipments between these countries.
Cost Implications:
Rising Costs: While we have seen increases in costs related to transporting coffee to ports, we are working diligently to manage these expenses. We are minimizing storage times and preventing additional costs whenever possible.
Mitigating Financial Impact: We are exploring strategies to minimize the financial impact on you, including diversifying our shipping options and negotiating with multiple carriers.
Buyer Communication:
Keeping You Informed: We have communicated these challenges to all buyers via email, encouraging collaboration with various shipping lines such as MAERSK, HAPAG LLOYD, MSC, and CMA.
Preparing for Delays: We advise you to establish safety stock levels, plan your purchases well in advance, and explore alternative shipping options to mitigate potential disruptions.
Future Outlook:
Anticipating Continued Shortages: With the start of the peak shipping season, extended transit times to avoid conflicts in the Red Sea, and adverse weather in Asia, we expect the container shortage to persist for several more months.
Supply Chain Impact: The ongoing shortage may lead to longer lead times for green coffee deliveries. This could affect inventory levels for roasters and distributors, potentially disrupting the availability of coffee and influencing market demand.
We appreciate your understanding and continued partnership as we work through these logistical challenges together. Our commitment to delivering quality coffee remains unwavering, and we are doing everything possible to minimize the impact on your business.
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