Fruit unions in Chile are urging authorities to stop the 25% increase in refrigerated freight rates, Blueberries Consulting reports. The surge was announced by shipping companies and is to be added to similar raises carried out in recent times.

For the start of the season, rates would mean an increase of almost 100% in the last two years. The new increase has generated confusion among fruit producers and exporters, with associations calling the new prices “unsustainable”.

Associationrepresentatives said that the new increase in sea freight coincides with the start of the 2022-23 cherry export season. Other summer fruit like blueberries and nectarines would also be among the affected exports.

With Asia being one of the main and most expensive destination markets for Chilean fruit, the industry has reacted with concern."We see that the price of refrigerated maritime transport has risen in an incomprehensible way. Added to this is the fact that the shipping companies have not met the agreed deadlines, which has caused our products to arrive late and in poor condition,” said Cristián Allende president of the National Agricultural Society (SNA).

The president of the Association of Fruit Exporters of Chile (ASOEX), Iván Marambio, said that this increase not only contradicts the signs of international trade, but also all the work that has been promoted along with the logistics chain.

"We have been working with all the players in the logistics chain to ensure a normal 2022-2023 fruit export season, where the shipping companies are also integrated, as we know that working together we can face the challenges for the benefit of all,” the executive said.

“In fact, together with [Chile port association] Camport we prepared a plan with 12 measures to improve the management and operation of port terminals during the high season, which we delivered to the authorities, therefore, after coordinated work, we see the announcements about these rises."

On the other hand, Daniel Fernández, president of Camport, pointed out that of the measures that were addressed in the work tables with the fruit sector, "there were no tariff issues, since it could not be included because it is not our role to coordinate nor apply tariffs, because it would affect free competition”. 

"If the expectation was that the issue of rates would be taken into account, it may have been a misinterpretation on their part," he said.

New rates are set to be applied by November.