Chilean sector unites to face logistics crisis

Key players come together in the face of the worsening situation ahead of the 2022/23 fruit export campaign.

Leading companies and organizations from Chile's export and import sectors have come together in a bid to find solutions to the logistics crisis that has raised food prices around the world and severely impacted Chile and its global trading partners.

Key players in the logistics chain, including Asoex, Fedefruta, the National Chamber of Commerce (CNC), the National Corporation of Consumers and Users (Conadecus), the Council of Food Exporters and port logistics operators, work with the ports of Valparaíso and San Antonio to devise effective measures to untangle Chile's logistics bottleneck and ensure the timely arrival of fruit to global markets.

Amid what is described as unprecedented levels of coordination between the public and private sectors, important progress has already been made following a series of meetings with the Ministries of Transport and Economy.

It has been recognized that, although the logistical problems have intensified due to the pandemic and the war between Russia and Ukraine, the national solution to the problem lies in taking short- and medium-term measures to improve the efficiency of Chilean ports, solving the shortage of workers across the country. the logistics chain, and finding ways to mitigate rising shipping rates, among other issues.

One of the measures being considered is to authorize the Port of Windows to receive cargo ships. Other strategies include giving priority to strategic food and supplies in the port operation, enabling chamber ships in the terminals of Valparaíso and Coquimbo and the ports of the Eighth Region, and modifying the wave height restrictions in the port of San Antonio, which that would facilitate the arrival and departure of more ships.

The Chilean Minister of Economy, Nicolás Grau, commented: “There is permanent coordination with the Ministry of Transport and Telecommunications to address these challenges prior to the months of greatest demand between November 2022 and April 2023.

He said that the sector is "working to relaunch the Collaborative Logistics Plan for Foreign Trade (PLC), which involves public-private collaboration and the participation of multiple actors throughout the logistics chain."

The president of Asoex, Ronald Bown, commented: "The loss of fruit and the uncertainty generated by the impossibility of the fruit reaching international clients on time is generating a crisis that affects Chile's image as the main world supplier.

“This seriously jeopardizes Chile's place as the main producer-exporter of fresh fruit in the southern hemisphere and the fifth worldwide. Therefore, we seek urgent solutions based on the joint effort of the public-private sectors.

“We are off to a great start. We have all the right partners sitting at the table to solve the main problems, and we are confident that during the next season we will return to pre-pandemic service levels."

The president of Conadecus, Hernán Calderón, expressed his concern about how this crisis is impacting consumers.

He warned that "the serious logistics crisis, which affects the entire country, puts the prices of food and basic necessities at risk, affecting the entire population in an inflationary context that is alarming and where urgent solutions are required to protect the most needy. ”

Claudio Cilveti, president of the Food Export Council, highlighted the need to strengthen the logistics chain for the recovery of the export sector that was hit hard by the pandemic.

He pointed out that foreign food exports reach US$18.000bn a year, so "a robust management model must be implemented to meet commitments with destination countries, boost foreign trade, promote production and increase food supply." products, thus promoting the growth of the country's supply". employment and economy at a time when it is most needed”.

The president of the CNC, Ricardo Mewes, stressed that "the increase in the cost of fuel, together with changes in routes and shipping capacity, puts greater pressure on freight rates, which has impacted the cost of imports.

"In the commercial sector, where most products are imported, it is the final consumer, that is, the people and their families who are already facing the pressure of inflation, who are impacted."

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