July 2023 Regional Market Report News

Crop Updates

Ripe Olives

The poor olive harvest in Spain and Morocco in Fall of 2022 that has impacted olive oil and table olive oil prices is causing delays in shipments for ripe olives out of Morocco, our primary source for ripe olives.

As raw material supply has been significantly reduced, our partners are having to double efforts to secure raw materials to meet production demand. We are partnering closely with them to monitor the situation and keep product flowing, while maintaining prices and ensuring product availability, until the new harvest in October.

Global Supply Chain and Logistics Updates

Import Volumes Identical to 2019

Entering the second half of 2023, containerized import levels “entering” the United States are identical to the reported 2019 data. Month-over-month import levels have increased by 3.8%.

As inflation continues to decline, US manufacturers are spending in record amounts and factory construction is booming. With the current economic landscape, we anticipate seeing imports continuing to rise through the third quarter. Any unforeseen declines will most likely be short-lived.

As discussed in last month’s update, Southeast Asian trade from China, Vietnam, and India have been driving import volumes. As Asian trade increases, European imports have been slowing over the last few months. As a result, West Coast ports have increased their volume share, while East and Gulf Coast port levels are decreasing. Based on this current data, we expect to see these trends continue through the rest of 2023.

Sea Levels Fall in the Panama Canal

Low sea levels in the Panama Canal may cause cargo disruptions, and importers should be wary of delays. Due to the current conditions selective shipping lines have placed weight limits on containers and implemented surcharges for vessels sailing through the canal. Shippers above weight restrictions will be forced to reroute through the Suez Canal or split cargo between two containers to pass through. With these circumstances, we can expect to see cargo shift to the West Coast as an incentive to avoid Panama disruptions and surcharges.

Sources:

• NRF