December 05, 2022 | Industry News
December 2022 Regional Market Report News
Record drought and heat conditions in primary growing regions of China have resulted in reduced crop yields for mandarin oranges.
Over the summer, China experienced record-breaking weather conditions, with extremely high temperatures and low rainfall lasting for more than 70 days. Farming land was depleted and even water sources, such as the Yangtze River, were dried out. This prolonged climate burden had a direct impact on the autumn harvest, including mandarin oranges, which are harvested from November through January.
At Roland Foods, we have been in contact with our suppliers in the region to secure product and have been working with potential supplementary suppliers, should the need arise.
To read more about the drought in China, head to The Guardian.
The anchovy fishing season in Peru was prematurely halted due to climate factors affecting the fish. The onset of La Niña has contributed to colder waters off the coast of Peru, and as a result, the anchovies have been too small to utilize. Anchovy suppliers are hopeful that with the new year and the height of the summer season in Peru the water will warm up and fishing will resume, but for the moment the fishing has been paused.
At Roland Foods, we are in constant communication with our anchovy suppliers and are doing everything we can to ensure that we are prioritized. In addition to these products, we offer a wide variety of anchovy products including anchovy pastes, which are great for adding umami flavor to dishes.
Global Supply Chain and Logistics Updates
Nationwide Rail Strike is Temporarily Avoided
The third largest rail union, who previously rejected the latest Labor contract (Brotherhood of Maintenance of Way Employees Division of the Teamsters) agreed to push out the lockout day for a strike from November 19th to December 4th to provide more time to settle and agree on a new labor contract. In early December, Congress intervened to avoid the rail strike, passing legislation to force a temporary rail labor agreement.
Read more about the latest at CNBC.
Imports Remain Low, Even During the Holiday Ramp Up
October is usually the strongest months for imports, as retailers prepare for heightened consumer spending during the Holiday season. This year October was just about tied with September as the 2022’s lowest volume month with 2,220,331 twenty-foot equivalent units. In historical terms this is a high volume, ranking as the third highest October on record behind only 2021 and 2020. While we are still anticipating consumer spending to be strong, it does appear the combination of high energy prices, inflation, and high retail inventory levels will draw imports lower in the foreseeable future.
Small Improvements in Port Congestion
On the topic of congestion, small improvements can be seen around the country. The Port of New York/New Jersey had a sizeable decrease in volumes as well as Port of Los Angeles/Long Beach, so we will hopefully see more improvements this month. There is a consensus that the largest factor in fixing East Coast congestion will be when West Coast labor issues, such as ILWU pending labor agreement and how California’s AB5 will affect drayage truckers, is resolved. Steamship lines are still hesitant to divert volume back to the West Coast.
At Roland Foods we have spent the last several months preparing for this holiday season. We are confident that we can meet all our customers’ demands and provide the right products at the right time.