April 03, 2024 | Industry News
April 2024 Regional Market Report News
Crop Updates
Peppers
After a challenging season in 2023 due to El Niño related weather conditions in Peru, the outlook has improved as suppliers are becoming optimistic about the raw material yield. Early-year crop yields are better than anticipated and growers are expecting the crop in August-September to be improved in 2024. We have worked closely with our partners in the region to protect our supply in the short term and look forward to a successful campaign in 2024 and 2025.
Anchovies
Anchovy yields from Peruvian waters are still impacted by the effects of El Niño. While we remain hopeful for a turn in conditions, we will continue to source externally to ensure we maintain an ample inventory.
Global Supply Chain and Logistics Updates
A Glimpse into Q1 Import Volumes
Import volumes into the United States during the first quarter of 2024 surpassed expectations, coming in nearly 10% ahead of 2023 data. Trade momentum after the Chinese New Year remained robust, particularly driven by consumer-oriented goods. Despite disruptions caused by the Panama Canal and Suez Canal, ports along the East and West Coasts experienced fewer delays and diversions than anticipated.
An Optimistic Panama Canal Update
As the dry season ends in South America, water levels in the Panama Canal are on the rise. Increased stability in water levels has allowed the canal to increase vessel crossings to 27 per day, compared to the previous limit of 18. As the rainy season continues crossings should increase even further, however, it is uncertain whether they will surpass the pre-drought capacity of 38.Uncertainty in the Red Sea
Currently, there have been no updates or concrete timelines regarding when the Red Sea will be declared safe for shipping. As a result, major shipping lines continue to opt for routing nearly all vessels around the Cape of Good Hope. This has led to increased transit times and added difficulty and expense in shipping from various regions.
Rates from Asia began declining several weeks ago, although they remain elevated compared to normal levels. In Europe, carriers are still implementing General Rate Increases (GRIs) and other surcharges to offset the extended sailing durations and adjustments in vessel routes.