Global shipping, fresh produce markets face mixed fortunes in June

GLOBAL – The global shipping industry saw a decline in container ship on-time performance in June, while the fresh produce sector experienced substantial growth despite economic challenges.

June witnessed a slight dip in the global on-time performance of container ships, falling to 49.9 percent from May’s 50.2 percent.

This trend reflects ongoing issues such as port congestion and increased demand. The latest Schedule Reliability Report by Kuehne+Nagel indicates that these factors continue to impact reliability significantly below 2023 levels and may persist in the coming months.

“Trade performance decreased on five of the 11 major trades,” the report highlights. “The largest decrease was on Asia to North Europe, which fell by 7.3 percentage points to 34.9 percent.”

However, there was some positive news, with the Asia to North America trade seeing a 2.6 percentage point increase to 56.6 percent.

Blank sailings, where ships skip scheduled ports to save time and costs, have also been notable. During weeks 23 to 26 in June, carriers blanked nearly five percent of the total offered capacity on the westbound leg of the Asia-North Europe trade.

On the eastbound Transpacific route, 20 blanked sailings were announced, representing around eight percent of the total capacity.

Despite these challenges, there was a slight improvement in the monthly average arrival delay of late vessels.

“Compared to May, the monthly average improved by 0.3 days to 3.8 days in June,” the report noted. This average has remained stable over the past six months, fluctuating between 4.1 and 3.8 days.

Fresh produce market growth

In contrast to the shipping industry’s struggles, the fresh produce market saw significant growth in June. According to the International Fresh Produce Association (IFPA), fresh produce sales soared, driven by everyday demand and special occasions like Father’s Day.

“June delivered substantial growth for fresh produce despite deflation,” the association reported. Pounds of produce increased by six to seven percent in three out of the four weeks in June compared to the previous year. This rise in demand reflects consumers’ continued interest in fresh produce, even amid economic challenges.

The Thursday timing of the July Fourth holiday also likely pushed some sales into July, adding to the positive trend observed in June.

This seasonal boost highlights how holidays and special events can significantly influence consumer purchasing behavior.

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