Illusory diversification: Hass avocado depends on 4 shipping companies in South America

At first glance, avocados from Chile, Peru, and Colombia seem to have a great advantage: many and varied destination markets: Europe, the USA, Asia, and the Middle East.

And within Europe: the Netherlands, Spain, the UK, France, and Germany.

But this diversity of markets and destinations can create a dangerous illusion: thinking that there is also a logistical diversity that supports it.

Many markets do not mean many routes

In practice, most South American avocados end up entering Europe through the same main points: Rotterdam, Antwerp and some Mediterranean hubs.

From there it is redistributed to different countries.

Although it's sold to many markets, the cargo only travels along certain routes. The destinations change, but the routes don't.

Four shipping companies control the system from South America to Europe.

On those main routes, capacity is not fragmented.

Four shipping companies control more than 90% of the market: MSC, Maersk, CMA CGM and Hapag Lloyd.

These shipping companies control most of the space on the ships, the availability of reefer equipment, and the plugs needed to maintain the cold chain.

It's not just space, it's equipment and power outlets.

Therefore, in peak season, there may be many markets and high demand, but very few real options for logistical capacity.

There is an illusion of having multiple options through different logistics operators, but the reality is that one of these four global shipping companies is always supporting that option.

The conclusion

South American avocados are not limited by the number of destinations they reach. They are limited by the concentration of the transportation system.

Many markets do not mean many logistical options.

Towards Europe – its main destination – everything depends, in practice, on four global shipping companies.

Jorge Rosés W.
International Sales Manager
Seemann Trader
jroses@seemanngroup.com