China Rejects $130 Million Chilean Cherry Shipment After Shipping Delay

A massive shipment of Chilean cherries, valued between $60 million and $130 million, is at risk of being destroyed after being stranded at sea for weeks.

The shipment, meant to reach China in time for the Lunar New Year, was delayed after the container ship Maersk Saltoro suffered a breakdown in the Pacific Ocean.

By the time it reached the port, much of the cherries were spoiled, leading Chinese customs officials to reject the cargo.

The Maersk Saltoro, a vessel chartered by Maersk for the seasonal “Cherry Express” service, departed from the Port of San Antonio in Chile on December 27.

It was scheduled to arrive in China by January 15 to meet the peak demand for cherries during Lunar New Year celebrations.

However, things changed when the vessel suffered a breakdown about 500 nautical miles from Pohnpei in January.

With no immediate solution available, the vessel drifted at sea for three weeks. A team of technicians was eventually sent by tugboat to conduct repairs, allowing the ship to resume its journey.

However, by the time it arrived at the port of Nansha on February 17, it was already 52 days behind schedule, missing the most profitable sales window for the cherries.

The Maersk Saltoro was carrying 1,353 containers of Chilean cherries, about 1,300 of which were affected by the delay. Although the fruit remained refrigerated throughout the voyage, prolonged transit time took its toll.

Upon arrival, Chinese authorities inspected the cargo and found a major portion of the cherries in poor condition, showing signs of rotting and mold.

Due to which, the customs initially rejected the entire shipment, ordering it to be destroyed or re-exported. However, following discussions with the Chilean Cherry Committee, officials agreed to inspect each container individually to determine how much of the fruit could still be salvaged.

Claudia Soler, executive director of the Chilean Fruit Cherry Committee, stated that customs inspections are ongoing and may take several days. The final decision will determine the extent of the losses.

Antonio Walker, president of the National Society of Agriculture, expressed concerns over the quality of the fruit. He said that the cherries in the first containers unloaded were soft and showed signs of rotting, making them unsuitable for sale.

He added that insurance coverage would help in reducing financial losses.

“Given how perishable cherries are, exporters usually take out maritime transport insurance,” Walker explained. “Most of the cherries on this shipment are insured, so we expect insurance companies to respond as they always have.”

He advised exporters to contact their insurers and review their policies to assess their options.

If customs officials declare the fruit unfit for human consumption, the entire shipment may have to be destroyed, a process that could cost around $1,000 per ton.

Agustin Cornejo, general manager of QC Fruit, confirmed that inspections have revealed high levels of rotting and splitting in many containers.

Cornejo also mentioned that authorities are handling the matter carefully due to the attention it gained on social media. Meanwhile, Javier Saavedra, commercial manager of QIMA Produce, stated that customs officials are still evaluating the condition of the fruit and searching for more disposal sites to accommodate the large volume of waste.

As of February 18, between 120 and 200 containers had been unloaded, with inspections revealing widespread spoilage. The process was temporarily halted while customs officials assessed the next steps.

Some containers remain on board under refrigeration, while others that have been unloaded are being kept in cold storage at the terminal.

Out of 20 containers inspected so far, only four were reviewed on Feb 17, while 16 were checked on Feb 18. At the time of publication, the laboratory test results were still pending, which will determine whether any portion of the cargo can be sold.

The Maersk Saltoro was also inspected by U.S. authorities in Baltimore last year. The vessel is a sister ship to the Dali, the container ship that suffered a power failure and crashed into the Francis Scott Key Bridge in Baltimore, causing it to collapse.

Reference: freshfruitportal

Source: Maritime Shipping News