Impact of the Shipping Container Shortage: An Insider’s Perspective

It’s no surprise that COVID-19 has thrown us a massive curveball, affecting lives and livelihood. While we are still in the midst of a health crisis, we are also combating a unique situation catalysed by the pandemic – the global shortage of shipping containers.

What is the shipping crisis about?

The onset of the pandemic saw nationwide lockdowns across several countries, particularly the US and China, which impeded the production and distribution of goods. Not only did this decelerate economic growth, but also threw the demand-supply chain off-balance.
On one hand, shipping companies began to curb the number of container ships they were sending out. On the other, empty containers started stacking up at cargo ports, creating heavy congestion. This shortage of shipping containers has eventually resulted in a domino effect, disrupting global trade.

How has the shipping crisis affected the food industry?

While several industries are facing the repercussions of this stockpiling of cargo ships, the worrisome issue at hand is the spike in global food prices. The surge in the use of bio diesels, soaring demurrage fees and delays in delivery of perishable items, in addition to other obstacles, has passed on the added costs down the supply chain. The piling up of raw materials and fresh produce due to the lack of containers and the bottleneck at ports has stirred a shortage of food supply worldwide.

How is Copra Coconuts handling this crisis?

1. Foreseeing the future demand:

Having our own plant and supply chain enables us to extract, freeze and hold all our products well ahead of time to ensure we can meet our demands. We harvest our coconuts a year ahead, which allows us to have contingency plans in place should an unexpected crisis like this occur.

2. Tailoring supply chain solutions:

We operate keeping our customers in mind. When creating our supply chain plan, we use our knowledge about agriculture, the coconut harvesting season and its impact on prices so that our customers can benefit from the lower rates, better taste and year-round availability.
Moving forward, as the global economy reels from the shortage and price hikes caused by the crisis, we will work towards further fine-tuning our communication with our customers. This will lay a better groundwork for a more efficient supply chain plan and make sure that our products are readily available.

What is the way forward?

While our coconut-based products come from the farms of Thailand, our production and supply plans account for delays and logistical issues, which is why we are fortified against a shipping container crisis like this one.
If you’re looking for bulk supply of young Thai coconut meat or order in wholesale, we are here for you. Visit our online store or contact us for more information

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