Increase on BAF (Bunker Adjustment Factor) causing supply chain issues in Brazil

At the beginning of November, sea freight companies have adjusted their freight prices based on BAF in USD 150 per FCL, which reflects the increasing costs for melons and watermelons for export. The upward price trend occurs normally every 3-4 months a year and it causes freight prices to increase consequently. The stakeholders in supply chain are concerned with the increasing costs due to the fact that all their contracts and fixed prices with mostly European buyers were set in May 2021. This makes growers to squeeze their already short margins more.