You may have noticed that your coffees are taking a bit more time than usual to arrive in Europe… Indeed, as many other coffee importers, we are suffering a severe worldwide container crisis for some months now.

First, it is important to reflect on how the COVID logistical crisis has led to the current container shortage crisis. The rebound of the consumption impacted the availability of containers. This combined with the limited port operations in the port of Yantian gives us the total disruption in the world-wide supply chain.

Up to 5% of global freight capacity is being held up in China at the country’s largest container terminal. Adding to this, the ripple effects of the Ever Given, blocking the Egypt’s Suez Canal back in March 2021. According to the European Coffee Federation:” The all over situation in logistics resulting in the lowest ever seen) shipping line schedule reliability that is down to 36%!”

Container shortage has always been a challenge in the coffee logistics especially during “peak” months but here the situation is systemic and worldwide.  “For the first time in years, we are discussing lack of capacity vs overcapacity. There might be just enough containers, but they are certainly not placed in the right place at the right time.” said the European Coffee Federation. Situation is expected to be regulated only by 2022.

In addition to the delays, another consequence is the drastic increase in freight rates, due to the lack of space and equipment, and the continued increase in demand. On the consumption side, the price of coffee may be affected by the increase in logistics costs. On the production side, producers may face delays in payment, as coffee is usually not paid for until the container is loaded onto the boat.

Anticipation and forecast are keys elements to face this situation for all the actors of the coffee supply chain. And in the meantime, a bit more of patience …