February 25, 2020

BRF maintains meat exports to China amid port congestion issues

The Brazilian company said it is monitoring China's port congestion due to the coronavirus outbreak, adding that cargo movements have progressively resumed, reported Reuters.

Ports in China have run out of refrigerated containers meant for imported meat products as the coronavirus outbreak and subsequent quarantine meant that the ports have not enough workers to offload frozen meat and other food products currently in storage.

BRF said in a statement that the company's shipments to China are currently shipped as per normal, with no storage issues in Brazil. However, it adds that the company understands that cargo destined for China will arrive under a controlled logistics situation.

China is trying to restore trade operations, as Maersk, the biggest container line in the world said the coronavirus outbreak will heavily affect earnings.

BRF said there has been no added costs for shipping goods to China, answering a question from Reuters about a US$1,000 congestion fee imposed by shipping companies per container for refrigerated cargo destined to China.

ABPA, a chicken and pork producer association in Brazil said there have been delays to refrigerated products at ports in China. But APBA changed its stance this week, as the associated said there is an improved cargo flow at Chinese ports. APBA referred to information provided by its member companies and the government of Brazil.

ABIEC, a beef processor group from Brazil said they have no information from its members about rerouted beef shipments due to congestion at Chinese ports.

ABIEC added that the announcement by China's transport ministry to waive toll fees at expressways until epidemic control work was completed in the country will assist to resume commercial flows.

-      Reuters