July 2024 Regional Market Report News

Crop Updates

Capers

Unfavorable weather conditions in Morocco have affected the caper harvest and yields. Consequently, we have expanded our sourcing efforts overseas, opening a wider market for product availability, and anticipate no complications within the category.

Lychee

Due to severe weather events, including tornadoes and heavy rainstorms in China and Vietnam, the lychee harvest is expected to be significantly lower this year. The two major lychee-producing provinces in China anticipate a 50% reduction in yield. This will create supply challenges as demand shifts to other regions. Fortunately, Roland Foods does not source lychees from the most affected areas, ensuring we can meet our needs. We do, however, expect pricing to be meaningfully higher than last year due to the poor yield.

Anchovies

While the Peruvian anchovy outlook continues to improve, we do not plan to resume consistent sourcing from the region until the lingering effects of La Niña subside. We are in constant communication with our suppliers to ensure we are first in line for production as conditions improve.

Global Supply Chain and Logistics Updates

Robust Import Report

Containerized imports continue to exceed expectations, increasing month over month. As of 2024, the total imported volume is 10% higher than at the same time in 2023. The primary driver of this growth is imports from China, particularly consumer-oriented goods. With the peak season in full swing, imports are expected to remain high throughout the summer.

Freight Rates on the Rise

Ocean freight rates have surged significantly since the start of the summer peak season, driven by increased demand and ongoing supply constraints due to the Red Sea diversion. Due to extended transit times, shippers are opting to ship earlier than usual, and unfavorable weather conditions at Chinese ports have caused further delays and congestion across Asia, making empty containers scarce. Carriers have responded by raising rates.

At Roland Foods, our robust carrier network and flexible planning allow us to maintain shipping operations even in tight market conditions.

Sources:

• Descartes