Logistics costs are skyrocketing… Agri-food exports ‘ankle’

Published Jul 4, 2024

Tridge summary

The Gyeongsangbuk-do Yeongcheon Shinnyeong Agricultural Cooperative has halted its peeled garlic exports to the U.S. due to rising logistics costs driven by geopolitical risks, climate crises, and port union strikes, as indicated by the Shanghai Container Freight Index (SCFI). Other cooperatives like Duwon Nonghyup face similar challenges, impacting their profits. Experts call for tangible support plans for farmers, suggesting alternatives to WTO regulations, such as additional support for screening fees, packaging, and agricultural materials, and incentives to maintain farmers' prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

# Gyeongsangbuk-do Yeongcheon Shinnyeong Agricultural Cooperative (Chairman Lee Gu-kwon) exported peeled garlic to the U.S. and achieved the success of publicizing the excellence of our agricultural products, but is currently suffering from a steep rise in logistics costs. Lee Gu-kwon, head of the association, said, “Maritime freight rates have risen sharply due to the prolonged fighting in the Red Sea, etc.” and “The burden of logistics costs has increased by more than 4 to 5 million won per container (17.3 tons) compared to the end of last year.” Global maritime logistics costs are skyrocketing. Following the government's abolition of support for agricultural export logistics costs early this year, there are concerns that negative news may lead to a decline in agricultural and food exports. This is why voices are increasing to strengthen support for joint screening fees and packaging fees. The Shanghai Container Freight Index (SCFI), which indicates the level of international ...

Source: Nongmin