A severe drought has reduced the levels of freshwater in the watershed of the Panama Canal, impacting shipping volumes. The Panama Canal Authority has reduced the daily transit capacity of the canal, which in turn is increasing the wait time for vessels passing through the canal. This could impact fresh fruit and vegetable shipments to the East Coast of the United States, both in volume and quality, particularly for table grapes.
The United States consumes 1.3 million tons of table grapes per year on average, with imports accounting for slightly more than half. The main suppliers are Peru, Chile, and Mexico, which combined account for 98 percent of total imports. Almost all of Mexico’s shipments enter the United States overland through Arizona and Texas, but the majority of supplies from Chile and Peru enter East Coast ports, with the quickest and most economical transit being through the Panama Canal.
On average, the United States imports nearly 270,000 tons of table grapes from Chile, with 75 percent of shipments entering the United States via East Coast ports. For Peru, East Coast ports are even more critical at 85 percent and averaging 230,000 tons. The Port of Philadelphia is the top port of destination for both countries, accounting for over 90 percent of their East Coast shipments. Given disruptions to Panama Canal capacity, shippers may need to explore alternatives. These would include shipping to west coast ports, as significant volumes already enter the west coast via Los Angeles, California. Shipping could also be routed around Cape Horn. However, these and other options would result in added time in transit, potentially
World apple production for 2023/24 is forecast to edge slightly higher, up 175,000 metric tons (tons) to 83.1 million as recovering supplies in China, South Africa, and the United States more than offset losses in the European Union and Turkey. Exports are estimated up 632,000 tons to 6.1 million primarily on higher shipments from the United States, Iran, and China.
China production is forecast up 500,000 tons to 45.0 million as higher output in the provinces of Shanxi, Henan, Hebei, and Liaoning more than offsets frost and temperature‐related losses in Shandong and Gansu provinces. Acreage continues to decline due to a policy encouraging or requiring certain farmland (as defined by government regulations) be used for other crops.
However, growers are working to optimize production in existing orchards; it is estimated that nearly 20 percent of apple growing area is now made up of high‐density plantings of dwarf trees. Exports are anticipated to rise 71,000 tons to 845,000 as increased supplies boost shipments to Asia markets. Imports are projected down 15,000 tons to 80,000 on reduced shipments from New Zealand following damage from Cyclone Gabrielle in February 2023.
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Source: apps.fas.usda.gov