There is growing concern among international coffee traders that the spreading COVID-19 pandemic may disrupt supply chains and trigger delays in the world’s ports.
Some traders are sending warnings to clients, according to a Bloomberg News report in late March. Volcafe Ltd. told its clients in a memo that logistical delays are expected to become “more widespread” in coffee-producing countries.
Sucafina SA, meanwhile, advised its buyers to submit place orders as soon as possible, according to the Bloomberg report.
The coffee and tea trades are not alone, however, as supply chains for many products are facing interruptions. There are reports of container shortages. Coffee traders also are keeping an eye on a possible labor strike in Brazilian ports.
“In relation to vessel, truck, rail or container deliveries we have seen some additional safety measures put in place in various countries,” the Volcafe memo read according to Bloomberg. “We should highlight that there are already delays in some areas and we expect this to become more widespread throughout most major coffee origins.”
A Sucafina memo said the company is not expecting any shipment delays but cautions that the situation is “fluid and evolving.”
“This may be a good time to consider taking advance shipment of coffee you have on contract or think you might need in the near future,” the company memo said.