7 Ways to Transform the Global Food Supply Chaincontract
International
shipping Challenges
Whether we are munching on grapes from Chile, peppers from Peru, tomatoes from Jordan, or dates from Iraq, most
of us have come to expect and enjoy a highly efficient global food supply chain.
Today, around
23% of all the food produced globally is traded internationally and the global food system
accounts for 10% of the world's GDP. In the U.S. alone, 32% of vegetables, 55% of fresh fruits, and 94% of
all
seafood consumed each year are imported. The system works well — until it doesn't.
By Laura Ross Apr 27, 2022
What's
Changed in Global Food International shipping?
In recent years, the global food network has operated fairly seamlessly. Consumer demand
has been consistent and
supplies chain disruption minimal, which means the flow of goods from farm to fork has been relatively easy
for
suppliers and retailers to predict and accommodate. But the current system relies much too heavily on this
consistency and has ultimately prioritized efficiency and cost reduction over long-term supply chain
resilience.
The outbreak of COVID-19 presented global food supply chains with a series of major
challenges. But it also
served as a stark warning of what the future might hold if major changes in the system don't occur.
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How Did
COVID-19 Impact International shipping?
In the months following the coronavirus outbreak, the stability of global food
International shipping took a
major hit.
For starters, a dip in shipping frequency saw containers piling up in some corners of
the world while in others,
exporters were finding them almost impossible to come by.
As global trade subsequently slowed and the food services industry all but ground to a
halt, crops were left to
rot and farmers were forced to dump large quantities of unwanted produce. Others quickly pivoted to reduce
their
operations to cut back on unnecessary costs but still struggled due to a reliance on single-source buyers.
The sudden and drastic shift in consumer spending, which comprised stockpiling and
panic-buying, put a further
strain on retailers and supply chains around the globe. For many consumers, this marked the first time they
had
been unable to purchase the produce they wanted on-demand.
While these factors certainly put global food supply chains to the test, the industry
has been relatively quick
to bounce back. Farmers and wholesalers found new buyers or repurposed their products into smaller sizes for
retail sale, while the food services industry has gradually sprung back to life. More concerning are the
warnings of future disruptions — ones that the global food supply chain may not be so quick to recover from.
How can we learn from the devastation caused by COVID-19 and prepare for a brighter, and
much more resilient,
future?
How Can We
Build International shipping Resilience in Global Food Supply Chains?
In today's world, restaurants have re-opened, grocery store shelves are bursting at
the seams, and we
are
enjoying a new kind of normal. But challenges remain for global food supply chains.
In October of last year, BRINK News reported on the spikes in shipping container prices,
driven in part by
the
renewed demand for products in the food services sector. Container costs between China and North America,
for
example, were up a whopping 1,250%.
Furthermore, more frequent instances of extreme weather events, including droughts,
floods, and windstorms,
will
further disrupt supply chains, ruin crops, impact livestock, and affect water supplies.
It's believed that a large-scale disaster, whether it be a severe weather event or
a crop disease
outbreak,
could decrease food production by 10-15%, with one report estimating that staple food crops will decline by
a
third by 2050. This would ultimately lead to issues at a scale far greater than we experienced during the
COVID-19 pandemic.
