Brazil’s Coffee Sector Continues to Face Logistical ChallengesCoffeeNetwork (New York) – Today, Brazil’s Coffee Exporters Association, CeCafe, released their latest monthly report, which showed that exports for the country’s July 2023 to August 2024 coffee year totaled 43.7 million bags, an increase of 37.2% year on year.
While the increase in exports is notable, and attributed to Brazil’s ability to compensate for lower production in other major producing nations, logistical challenges still impacted the flow of coffee.
According to the president of Cecafé, Márcio Ferreira, “we continue to face intense logistical bottlenecks, with problems abroad due to the persistence of geopolitical conflicts, and, internally, with the congestion of main Brazilian port, in Santos (SP), which has generated high additional and unforeseen costs for exporters and suppliers.”
According to figures from the Detention Zero Bulletin (DTZ), prepared by ElloX Digital in partnership with Cecafé, 254 ships destined for coffee exports suffered delays or changes of call in Brazilian ports in June, a number that represented 62% of the 413 container ships handled last month. In Santos, 118 vessels experienced delays in the boarding process, or 82% of the total.
For the entirety of the crop year, the Port of Santos was the main exporter of coffee from Brazil, with the shipment of 32.607 million bags, which corresponds to 68.9% of the entire volume sold. Despite the leadership in the ranking, this is the lowest percentage of representation of the Santos port in history (the highest being when 85% of coffee was shipped through the port). This highlights the ports congestion and logistical issues and signals the possibility of more difficulties for the second semester, when exports of containerized cargo increase.
There have been numerous reports that shipping rates from Brazil to North America are at their highest level in a year as demand grows but space remains limited.
Numerous shipping lines have implemented general rate increases (GRIs) to profit off of the strong demand. CMA CGM has implemented general rate increases (GRIs) on its north-south Brazex service every month since April of $300 per container. Hapag-Lloyd is also implementing a $200 per container GRI from July 4 from the East Coast of South America to North America, Central America and the Caribbean.
Alexis Rubinstein
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