By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California
www.mangoworldmagazine.blogspot.com
September 1, 2011
Shipper data out of Brazil is causing the IMO concern in both the European and USA markets.
After what seemed an orderly program out of Brazil, shipping volume is creeping past levels that would indicate a potential market collapse is on the horizon.
This time of year is always touch and go for shippers out of Brazil as Atlantic storms could cause a back log on shipping schedules. As volumes start to overheat (crossing responsible limits) back breaking volumes could hit the marketplace, making it very difficult to pull out of a losing proposition for shippers in Brazil and importers at destination.
Both of these limits were crossed in week 34 out of Brazil. A very risky 73 containers were shipped to Europe which could see a very limited market place collapse.
More worrisome is USA data that shows 125 containers shipped from Brazil to the USA market place by over 25% of the upper limit that was established preseason.
To make matters worse, on a 2010 to 2011 comparison, for the second half of the year through week 34, Brazil has shipped 78 MORE containers to USA than last year,
Hopefully this is a temporary situation that can be corrected in following weeks by cutting back volume to compensate.
As we all know, markets take a very long time to recover from a tanking.
The statistics out of Brazil are very worrisome.
The next shipping data will show us if Brazil is paying attention.
Executive Director
International Mango Organization (IMO)
Vista, California
www.mangoworldmagazine.blogspot.com
September 1, 2011
Shipper data out of Brazil is causing the IMO concern in both the European and USA markets.
After what seemed an orderly program out of Brazil, shipping volume is creeping past levels that would indicate a potential market collapse is on the horizon.
This time of year is always touch and go for shippers out of Brazil as Atlantic storms could cause a back log on shipping schedules. As volumes start to overheat (crossing responsible limits) back breaking volumes could hit the marketplace, making it very difficult to pull out of a losing proposition for shippers in Brazil and importers at destination.
Both of these limits were crossed in week 34 out of Brazil. A very risky 73 containers were shipped to Europe which could see a very limited market place collapse.
More worrisome is USA data that shows 125 containers shipped from Brazil to the USA market place by over 25% of the upper limit that was established preseason.
To make matters worse, on a 2010 to 2011 comparison, for the second half of the year through week 34, Brazil has shipped 78 MORE containers to USA than last year,
Hopefully this is a temporary situation that can be corrected in following weeks by cutting back volume to compensate.
As we all know, markets take a very long time to recover from a tanking.
The statistics out of Brazil are very worrisome.
The next shipping data will show us if Brazil is paying attention.
