The international trade of fresh fruits and vegetables has seen some significant changes recently, and it’s not all good news. According to a recent report from the Global Coalition of Fresh Produce (GCFP), about three-fifths of the fresh produce we find in our grocery stores is being sold at a loss or just barely breaking even. What’s behind this startling trend? Well, it all comes down to a perfect storm of increased production and operating costs during the pandemic.
Let’s break down what this means for both the fresh produce industry and how it relates to cargo claims and recoveries.
Production costs have soared, hitting the industry hard. This means that many fresh fruits and veggies are being sold to us, the consumers, without much profit for the growers and distributors.
One of the ripple effects of these cost increases is a reduction in new investment projects. In other words, the exporters, growers who usually invest in making the fresh produce industry more efficient and productive are holding back. This is a cause for concern because it means we might feel the effects of these cost increases for some time to come.
Now, you might be wondering how all of this connects to cargo claims and recoveries. Well, let’s draw the connections.
When fresh produce is transported globally, it goes through a complex supply chain. From the farms to distribution centers and finally to your local grocery store, there are many steps involved. During these journeys, cargo damage can occur due to various reasons—temperature fluctuations, improper handling, and delays, to name a few.
Cargo claims become more common, and buyers do not pay to sellers for the damaged cargo and exporters are left with no other option but to pursue claims recovery from the liable for the damage carriers. Even today, many exporters do not have resources, time and knowledge to employ highly qualified shipping lawyer with direct industry expertise to propel, their claims.
This is where services like Recoupex, which specialize in cargo claims recoveries, come into play. We help businesses with cargo claims and get back what’s rightfully theirs.
For consumers, the repercussions are also felt. The cost of fresh produce may continue to rise as the industry grapples with these challenges. We might see fluctuations in availability and quality and increased prices.
So, what can we take away from all of this? The fresh produce industry is facing tough times, and it’s crucial to ensure that cargo claims and recoveries are handled efficiently to unleash trapped cash in cargo claims.
Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.