Impacts of the Covid-19 pandemic on the logistics of exporting coffee in containers

Abstract

For many years, Brazil has held the title of the world’s largest coffee producer and exporter. However, despite this, national coffee producers still struggle to access foreign markets due to the bottlenecks and high costs associated with the agro-industrial system’s port logistics. The onset of the Covid-19 pandemic only exacerbated these challenges. Issues such as the scarcity of shipping containers and space on ships, cancellation of ship calls, and greater concentration and verticalization of the maritime and port transport sectors have further complicated matters. Furthermore, the regulation of these sectors in Brazil is still in its early stage. This study aimed to enhance the comprehension of the port costs incurred in exporting coffee in containers and the impacts that the Covid-19 pandemic on these costs and export logistics. The research utilized a quantitative and descriptive methodology. Data were gathered through a questionnaire administered to thirteen managers of Brazilian businesses and cooperatives engaged in containerized coffee exports. The study found that the pandemic directly impacted port costs and logistics, leading to more frequent container detention and additional port storage charges. Furthermore, the pandemic resulted in the introduction of new port fees/tariffs and raised the existing ones, such as the “Terminal Handling Charge” (THC), the “Export Logistic Fee” (ELF), the “Bill of Lading Issuance Fee” and the container scanning fee.