SÃO PAULO, Brazil – The Council of Coffee Exporters of Brazil (CECAFÉ) has issued a statement on the current logistics crisis and its negative impact on the country’s export performance. To make things worse, the coffee sector is now suffering the consequences of a truckers’ strike in the Port of Santos, the main export port for Brazilian coffee. Here is the statement:
“The Brazilian Coffee Exporters Council, an organization representing 120 associated companies actively engaged in the Brazilian green coffee sector, and which on aggregate correspond to 91% of the coffee exports, hereby wishes to present the necessary clarifications to the coffee roasters and traders about the ongoing challenging logistical situation in the country.
As you know, Covid-19 has posed numerous global challenges to various economies around the world; the closure of ports, the consequent delays in vessels and the perceived lack of availability of containers, amongst others.
Throughout the pandemic period, the Brazilian coffee producers, exporters, and related members of the coffee supply chain worked intensively to ensure the domestic and foreign Coffee supply. Several preventive measures to mitigate the impact of Covid-19 were adopted to ensure the stability of coffee income and related employment in the country.
Unfortunately, our associates as well as the vast majority of the Brazilian agribusiness has faced major logistical challenges to ship their products. The impact has been felt with higher strength since May 2021. Frequent cargo rollovers, booking cancellations, lack of space on vessels and lower availability of Food Grade containers represent the new normal.
On top of the chaotic scenario related to the international maritime transport, the coffee exporters are now facing the strike of the autonomous truck drivers at the Port of Santos. The ongoing strike has prevented the removal of empty containers and their return with loaded coffee cargo for export to the port terminals.
According to the information gathered by CECAFÉ, in fear of retaliation (damages to vehicles), transportation companies have significantly reduced their trucks in operation: a measure which has further impaired the flow of export cargo through Santos. We are expecting new delays and unfortunate new deadline misses for shipments.”
Despite the great efforts of the exporters’ logistics teams, internal and external logistical challenges have imposed limitations on shipments of Brazilian coffee. Based on our records, the country has accumulated shipment delays totaling an approximately 3.7 million bags of 60 Kg since January 2021.
As CECAFÉ we would like to inform the Brazilian Coffee buyers that our association has maintained a broad dialogue with other agribusiness sectors as well as the government, all, joining forces to mitigate the above-mentioned logistic issues, therefore, minimizing shipment delays going forward.
This statement reaffirms the commitment of CECAFÉ and its associates to transparency. It also wishes to demonstrate the sector’s engagement with the public authorities in respect of the Law to continue offering our coffee to the world.
