March 9th, 2010
Port Interests Unite To Petition U.S. Dept. Of Agriculture To Temporarily Suspend Chilean Table Grape Restrictions
Up to 20 days relief in April sought for humanitarian reasons for key trade partner devastated last month by a major earthquake
via Chilean Chamber of Commerce
Philadelphia — A broad coalition of the Delaware River port community – including representatives from the Philadelphia, Gloucester and Wilmington ports -- in an effort to extend a helping hand their Chilean friends and trade partners, petitioned U.S. Secretary of Agriculture Tom Vilsack to suspend for up to 20 days in April the restrictions on all table grapes imported from Chile and to clarify that the Crimson Seedless variety will be exempted from those restrictions this year.
The petition asks for a 10- to 20-day suspension from April 10 through April 30 of Table Grape Import Regulation 4, which annually limits the import of Chilean grapes after April 10. The April 30 date would coincide with a restriction date regularly used in years past.
The request is being made on humanitarian grounds, as Chile was hit Feb. 27 with a powerful earthquake registering 8.8 on the Richter scale. More than 200 aftershocks have since been recorded, including some over 6.0 on the Richter scale.
The earthquake caused widespread and catastrophic damage to the Chilean port facilities and transportation infrastructure needed to transport the grape harvest, with the most severe damage in areas suffered by small growers and harvest workers who depend on the fruit harvest and its sale in the United States.
“For well over 30 years the Delaware Valley and the tri-state region have benefited from a strong and mutually beneficial relationship with Chile rooted in the winter fruit program moving across the docks of the Greater Philadelphia maritime terminals” said Robert Palaima, President of Delaware River Stevedores and President of the Chilean and American Chamber of Commerce. “We believe there is a strong argument for this minor, one-time change based on the United States’ traditional commitment to humanitarian aid for those in distress, the regional economic impact, as well as national consumer interest.”
“The fact that all three ports, which compete with each other, are in agreement on this matter shows how important the topic really is,” added Ricardo Maldonado, executive director of the Chilean & American Chamber of Commerce of Greater Philadelphia. “There’s no downside here in being Good Samaritans, and all the ports can benefit, too.”
Leo Holt, President of Holt Logistics Corp., said, “For myself and my family this is a personal matter. My father, Tom, and I are recipients of the Friend of Chile award, which belies the fact that all of our people and those of the port are Friends of Chile, especially in this moment of crisis. The most natural thing in the world for the U.S. to do is extend the same kind of brotherhood to those in need. It's what we do.”
“This is the right thing to do,” agreed Tom Keefer, deputy executive director of the Diamond State Port Corp. in Wilmington. “We have a long, mutually beneficial relationship with the Chilean government and agricultural interests there and have the chance to provide much-needed relief.”
Aside from the humanitarian grounds, the request will benefit United States consumers via lower prices and a larger supply and will benefit the local port community – nearly 60 percent of all fruit shipments from Chile enter the United States through the three Delaware River ports.
U.S. grape consumption has doubled within the past 20 years, reaching per capita consumption of eight pounds annually.
It is expected the Chilean earthquake will aggravate the situation further.
“The still struggling economy has really hindered port businesses,” said Dennis Rochford, president of the Maritime Exchange for the Delaware River & Bay. “Here’s an opportunity to make good use of an underutilized resource, ultimately helping the Delaware Valley, not to mention our Chilean friends and business partners.”
Given the disruption in the Chilean harvest and shipments, Chile will lose the ability to distribute its crop – the voyage from Chile to the United States takes 10 to 14 days – without the temporary suspension of the import regulations. The Chilean industry estimates that 10 to 20 days of its harvest season will be delayed or lost.
And prior to the earthquake, the Chilean harvest was much smaller than last year due to climatic conditions, leaving fruit in short supply and higher-than-normal prices for consumers.
Meantime, table grape crops from Mexico and Southern California are expected to arrive six to 12 days later than normal, leaving the Chilean grapes as the only widely available variety of seedless grapes to fill the gap in April.
Those signing the petition include the Chilean and American Chamber of Commerce; the Greater Philadelphia Chamber of Commerce; the Delaware River Stevedores, Inc.; Chispa Group; the Delaware River Marine Trade Assoc.; the Maritime Exchange for the Delaware River & Bay; the Philadelphia Regional Port Authority; the Diamond State Port Corp.; Dole Fresh Fruit – Deciduous; Local 1566, International Longshoremen’s Assoc.; Holt Logistics Corp.; Fisher Capestan; Gloucester Terminals, LLC; Greenwich Terminals, LLC; Western Industries; Philadelphia/Wilmington District Council; The Oppenheimer Group; Dayka and Hackett LLC; Royal Fumigation and Pandol Bros., Inc.
