Linhart: “In the last few days, shipping costs between Salerno in Italy and the UK have increased by 300%”
In April, Cosco increased freight rates on ships leaving Salerno by 300%. MSC changed its routes from Naples to Great Britain and for a few days now, ships have been leaving from Gioia Tauro. The issue was raised by some of the leading entrepreneurs in the southern Italian agricultural sector. The dramatic increase in freight rates started in 2020, just after the first lockdown, and this affected all ports globally. This Spring, attention turned to the Campania region of Italy and the companies that until recently loaded their export goods onto ships docked in Naples and Salerno who are facing difficulties.
The company to highlight this was Atlante, a Bologna-based company operating in the food retail sector, on which the main Italian and international distribution chains rely. "In the last few days, freight costs between the port of Salerno and the UK have increased: we are talking about 300% increases compared to 2021 on a route where Cosco is the only operator. Moreover, MSC has moved its departures for the UK to Gioia Tauro,” says Atlante CEO Natasha Linhart. “Lead times will increase by at least one week". This is because goods are transported to Gioia Tauro on a feeder ship or train, and then transferred to a larger ship. “It is realistic,” she adds, “to expect a negative impact on pasta and tomato exports”. Atlante operates in 15 western and 6 Far Eastern countries, as well as South Africa and Israel, shipping over 6,000 cargos per year in 32 ports. Producers are also concerned. “We are caught in a perfect storm,” says Antonio Farraioli CEO of La Doria, a company that produces vegetable preserves and exports worldwide, and for whom the UK is a major market.
“If that wasn’t enough, it is even worse in the south. The route change adopted by MSC from 1st April adds further inconvenience as we exporters will suffer longer delivery times,” adds Ferraioli.
“In Italy, the cost of shipping a 40-foot container to the USA tripled between 2020 and 2022, and the cost of shipping the same container to the UK has increased by 70%”. From tomatoes to pasta. «We are seeing out-of-control price increases by logistics operators,” says Marco De Matteis, CEO of the pasta company of the same name that produces “Armando” pasta. “Agri-food exports are at great risk. We are talking about the Made in Italy products we are so proud of. We are considering reducing exports,” he concludes.
Apparently, this shockwave is caused by having fewer ships available (some of which have not adapted to green regulations), and growing demand for space. It's meaning that some supermarkets will see shortages on the shelves.
Entrepreneurs are pointing fingers. «A small number of players manage traffic and impose unjustified tariffs,” adds Ferraioli. “As I understand, the European anti-trust authorities have been asked to step in”. Conateco, the Consorzio Napoletano Terminal Container (100% MSC), which manages services in Naples, downplays the situation. “New tariff increases? They have actually decreased slightly!”, replies Pasquale Legora De Feo, CEO of Conate-co. On the transfer to Gioia Tauro, he adds, “Companies will still embark from Naples. MSC is responsible for transhipment to larger ships at Gioia Tauro”.