Due to high quantities of fresh fruit being exported from Chile, Peru and Ecuador in the last few weeks, there have been delays of as much as two to four weeks to the route of freight vessels transporting shrimp from Ecuador and Peru, multiple sources at the Seafood Expo Global told Undercurrent News. The merger of two large Japanese shipping companies into shipping firm Ocean Network Express at the start of the month also contributed to the issue, according to one Ecuadorean source. Congestion at the Panama Canal was also slowing down deliveries to the EU.
The lack of available containers to transport shrimp has led to delays of scheduled deliveries, particularly to European ports, but also to other destinations, including US and Asia, sources at the Brussels seafood show said. Fruit is being prioritized, because it is perishable, one Ecuadorean source said. Companies have been affected in different ways, depending on their size, a Peruvian source noted. The delays are generally of about two weeks, or more, a source at a second large Ecuadorean firm said.
Delays earlier this month snowballed, causing further delays in shipments, a source at a third Ecuadorean firm said.If deliveries to Europe were taking 15 days, now they take 30, a source at a fourth Ecuadorean shrimp processor noted. It is the first time that this issue happens for over a week, the latter also said, noting that there could be issues like this at the beginning of December amid congestion due to Christmas and Chinese New Year deliveries. This issue is expected to last until mid or end of May, according to some exporters. It is a regional problem, one source at a large Ecuadorean firm said. Sources at Chilean salmon farmers said that they had not been affected by the delays.
Impact: Meanwhile, Ecuadorean shrimp prices continued to soften following a global bearish trend, while overall exports rose, driven by higher production in the country. “All the producers are worried because they have invested a lot of money in new machinery, automatic feeders, aeration systems and the efficiency has increased a lot. The problem is now with the shipping companies, because they have reduced our weekly quota between 50-70%,” an Ecuadorean producer said. “It affects us a lot. A lot of shrimp is entering [into the processing plant] and is leaving slowly, causing many companies to accumulate stocks. The situation is improving a little, but it might last until May.”
But a source at a Peruvian shrimp exporter disagreed, stressing that the delays in deliveries should instead boost prices. If customers do not receive the product requested, shortages should boost prices, he said. Other Ecuadorean shrimp companies at the show were discussing whether prices, which recently ticked down compared with the previous harvest, can continue to go down and if so how much. I believe they need to re-start going up, a source at another large company said, pointing out that for some sizes, like for example the 60 count, was not profitable as higher farm-gate prices wouldn’t allow for profit margins.