In this installment of the ‘Agronometrics In Charts’ series, we discuss the impact of the recent tentative labor deal reached by USMX and ILA and its impact on Chilean grape exports. Each week the series looks at a different horticultural commodity, focusing on a specific origin or topic visualizing the market factors that are driving change.

Chilean grape exporters are celebrating the news of a tentative labor agreement between the US Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA), which prevents a major disruption at East Coast ports.

The deal, which resolves a longstanding labor dispute, removes the threat of a January 15 strike that could have derailed shipments during the peak of Chile’s grape export season. It allows for the uninterrupted functioning of ports vital to Chilean exporters, who depend on these gateways for selling fresh fruit to U.S. markets. Nicolas Damm of Rio Blanco, a large Chilean grape exporter, said there had been general industry jitters before the announcement.

“Shipping companies were canceling bookings and vessels to the East Coast, causing significant concern,” he said. Chile’s grape harvest is 5% higher this season, owing to good growing conditions and young vines coming into production. Exporters have already begun shipping early varieties, including Sweet Celebration and Cotton Candy, with high quality and excellent fruit sizes reported.

U.S. demand for Chilean grapes remains strong, with no slowdown in movement, and prices are expected to match or be slightly above last year. As major retailers make plans for the season, exporters are assuming they can maintain competitive level prices due to this year's crop being of high quality. The avoidance of a strike ensures that exporters can meet tight schedules and avoid costly delays, crucial for perishable goods.

The continued flow through East Coast ports strengthens Chile’s position to remain competitive in the U.S. market as regions like Copiapó and Atacama continue to witness impressive harvests. Amid a backdrop of challenges like China’s fluctuating demand, exporters can take comfort knowing that the U.S. market remains a stable and profitable destination for their premium fruit.

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)

Source: USDA Market News via Agronometrics.

(Agronometrics users can view this chart with live updates here)