It is expected that logistic efficiency is high and costs are low in Chile, because there is always a port nearby for export from the long and narrow country, which lies between the Pacific Ocean and the Andes. However, reality proves to be more complicated. In recent years, Chile decreased in the international ranking of efficiency in the field of (agrarian) logistics, and the country is trying to recover lost ground. Especially now that export volumes and values continue to increase. Dutch knowledge and technology can be of help with that.
Strikes in the ports
Why is Chile dropping? It's complicated, but the fact remains that other countries have simply performed better compared to Chile, resulting in the South American country falling behind. One reason for that is that the relative weight of the largest products, copper and cellulose, is decreasing, because other — logistically more complicated — chains, such as fresh fruit, are growing more considerably with more smaller producers and distributors.
Additionally, there were regular work stoppages and strikes in the ports in recent years, which increased the transaction time. The result was higher costs and quality loss. in early 2014, the customs strike in ports lasted more than three weeks, and came right in the middle of the fruit harvesting period. The foreman of the fruit exporter’s association ASOEX said that, besides direct damage due to loss of perishables, it would also mean reputational damage in the long term. “The reliability of Chile as supplier of fruit is up in the air,” as was said at that time.
Export of cherries
In the meantime, the fruit sector is not standing still. In recent years, the export of Chilean cherries to China has steadily grown. Chile has a ‘production window’ which allows the cherries to enter the Chinese market just before the Chinese New Year, when prices are sky-rocketing. ASOEX has talked to various major shipowners to use faster ships in the final weeks of the year, so that the transportation time to Hong Kong and Shanghai has decreased by five days - to 22 and 25 days respectively. There was also a significant increase in airborne exports, although the difference in transportation costs compared to shipping is considerable.
Electronic certification
The Chilean government is trying to make it as easy as possible for exporters, by lowering and decreasing the number of hurdles. Customs and inspection by SAG (Servicio Agrícola y Ganadero, comparable to the Netherlands Food and Consumer Product Safety Authority) at the same location, transparent regulations and the availability of digital information are some examples of this.
Source: Agroberichten Buitenland
