Inflation driving Food Costs for shipping
The repercussions of covid have impacted international trade which has resulted in disruption to the supply chain. Ongoing issues have led to food prices being pushed to their highest level in a decade.
The shipping industry is feeling the pinch as inflation drives up food costs for maritime companies that need supplies to feed seafarers.
MCTC, the international catering management provider, supports local contacts to source carbohydrates, meat, fish, fresh fruits and vegetables for its vessels. Food prices are at their highest in a decade for meat, dairy, cereal, vegetable oils and sugar, according to the FAO Food Price Index (FFPI).
Supply shortages are also contributing to the price rise, according to Christian Ioannou, MCTC Managing Director.
“It’s safe to say, it’s been a challenging time in more ways than one for our industry,” he said. “As specialists in the sector, we’ve managed to override the difficulties to the best of our ability through strategic planning and working alongside our international database of contacts to provide healthy nutritious food to seafarers.
“Our team of experts work closely with suppliers to ensure high-quality produce and secure the best offers in the market. If produce is not available, we use our global network of suppliers to find suitable replacements to the same high standards yet with the same health benefits for crew.
Mr Ioannou added that he believes the high food prices will possibly level off in 2022. “There should be some relief heading our way soon. According to the USDA, food prices are expected to fall next year by 1.5-2.5%, which offers some light at the end of the tunnel.”