Chilean Cherries Rejected By China Due To Shipping Delays
A shipment of Chilean cherries worth $60 million to $130 million is at risk of spoiling after being stranded at sea for weeks.
The shipment was due to arrive in China before the Lunar New Year, but the shipment was delayed when the Maersk Saltoro container ship ran aground in the Pacific Ocean.
Upon arrival at the port, many of the cherries were already rotten, causing Chinese customs officials to reject the shipment.
The Maersk Saltoro, which is chartered by Maersk for the seasonal “Cherry Express” route, departed from the Chilean port of San Antonio on December 27.
The shipment was originally scheduled to arrive in China on January 15 to meet the peak demand for cherries during the Lunar New Year.
But things changed in January this year when the ship broke down about 500 nautical miles from Pohnpei Island.
With no immediate solution, the ship floated at sea for three weeks. Eventually, a team of technicians arrived on a tugboat to repair it, and the ship was able to continue sailing.
But when the shipment arrived at Nansha Port on February 17, it had been delayed for 52 days, missing the most profitable sales period for cherries.
The Maersk Saltoro was carrying 1,353 containers of Chilean cherries, of which about 1,300 were affected by the delay. Although the fruit remained refrigerated throughout the journey, the long transit time still caused losses.
Upon arrival, Chinese authorities inspected the shipment and found that most of the cherries were in poor condition, with signs of rot and mold.
As a result, customs initially rejected the entire shipment and ordered it to be destroyed or re-exported. However, after talks with the Chilean Cherry Committee, officials agreed to conduct individual inspections of each container to determine how much fruit could be salvaged.
Claudia Soler, executive director of the Chilean Cherry Committee, said customs inspections were ongoing and could take several days. The final verdict will determine the extent of the losses.
Antonio Walker, president of the National Agricultural Association, expressed concerns about the quality of the fruit. He added that the cherries in the first containers unloaded were soft and showed signs of rot and were not suitable for sale.
He added that insurance coverage would help limit financial losses. “Because cherries are so perishable, exporters typically purchase marine freight insurance,” Walker said. “Most of the cherries in this shipment were insured, so we expect the insurers to respond as usual.”
Exporters are advised 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 costs about $1,000 per tonne.
Agustin Cornejo, general manager of QC Fruit, confirmed that inspections found extensive mold and damage in many containers.
Cornejo also said authorities were handling the matter with caution given the attention it has received on social media. Meanwhile, Javier Saavedra, commercial director of QIMA Produce, said customs officials were still assessing the condition of the fruit and looking for more disposal sites to accommodate the large volume of waste.
As of February 18, between 120 and 200 containers had been unloaded, and inspections revealed that the cargo was severely damaged. The process has been suspended while customs officials assess next steps.
Some containers remain refrigerated on the ship, while others that have been unloaded are stored in cold storage at the terminal.
Of the 20 containers that have been inspected so far, only four were inspected on February 17, while the other 16 were inspected on February 18. As of the time of this article’s publication, laboratory test results, which will determine whether any part of the shipment can be sold, have not yet been released.
Last year, U.S. authorities also inspected the Maersk Saltoro, a sister ship of the Daly, in Baltimore, which lost power and collided with the Francis Scott Key Bridge in Baltimore, causing the bridge to collapse.
