Chiquita strikes cargo deal for US shipments with MSC
Chiquita, the multi-billion dollar banana distributor, has reached an agreement with the Mediterranean Shipping Company (MSC) to transport its fruit from Central America to the USA.
Great White Fleet is used to carry its fruit, and it will initially use five ships with capacity of 2,500-2,800 TEU, owned or chartered by MSC, each with a minimum of 550 reefer plugs.
The agreement notes that GWF will have the option, at its expense, to paint one or more of the vessels in its distinctive all-white livery, and place company flag and logos on the ships. The establishment of this new container service; a so-called space sharing agreement, will bring Chiquita fruit including the distinctive labelled bananas to the US Gulf coast, East coast, and the Bahamas.
It has not yet transpired whether Chiquita has therefore secured space for a ripening facility at New Orleans, something the company must do before leaving Gulfport which it announced it was doing back in May. MSC usually docks its ships at the Napoleon Avenue Container Terminal at the Port of New Orleans however.
Meanwhile, Chiquita has postponed a vote on its proposed merger with Irish fruit company Fyffes until next month. Chiquita is seeking a final buyout offer from Cutrale and Safra, a Brazilian partnership that had previously offered $611 million.
Port officials have said they do not anticipate a buyout would affect Chiquita’s decision to move its Gulf Coast operations to New Orleans. The company recently reached an agreement with the Port of Gulfport to remain there through the end of the year.
For more up-to-date information on Chiquita news, please visit: http://investors.chiquita.com/phoenix.zhtml?c=119836&p=irol-news&nyo=0
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.