A new shipping route via China’s northern port city of Tiajing could help reduce the wholesale cost of cherries from Chile by 50%. 

Originally, cherries from Latin America had to land in south China before lengthy dispatches to the north, exacerbating costs.

As of January 18, 2024, a half kilogram of Chilean cherries were costing 200 Yuan ($27.86). At 400 Yuan $55.72 a kg, this wholesale price is a little more than in 2022 when the same cherries cost 383.96 yuan ($53.5). 

The U.S. Department of Agriculture (USDA) attributed the fall in Chinese supplies in 2022 to the COVID-19 pandemic, which offset distribution. USDA also predicted an increase of 8% in cherry production in China, which would help it reduce reliance on other sources. In its part, the U.S. exports cherries to mainly neighbouring Taiwan. 

Chile-China Cherry Trade: a 7-year Timeline

In the past 7 years, China-bound cherries from Chile used to land at the port of Dalian in the south. They would then take five hours to transport by road or air to the northern metropolises of Hubei, Beijing and Tiajing.

In October 2023, however, the municipality that runs Tiajing port initiated a direct shipping line to Chile.

Besides, the customs authority launched a direct unloading bay to give priority to these perishables over other goods.

Since 2017, exports of cherries from Chile to China have been growing by an average rate of 29% per year.  According to Xinhua, quoting the Chilean Fruit Exporters Association, Chile could export 85% of its cherries to China in 2024.

Hence, cherry production in Chile has expanded by 1800% between the years 2000 and 2022. While there were just 3,241 hectares at the turn of the millennium, by 2022 this had expanded to 61,559 hectares.

For seven years, Chile and China have been the biggest export and import markets of each other’s agricultural goods. Starting 2017, 98% of all trade products between the two countries have been enjoying 0% tariffs. 

Enter Tiajing Route

The coming of the direct shipping route may expand this thriving bilateral trade, including an increment in cherry shipments. 

For instance, the Tiajing port expects to handle 5,800 tonnes in South American produce before the end of January. This is on top of 2500 tonnes of Chilean cherries that steamed in on January 17, 2024.

At 20,000 km by sea, the Tiajing route from Chile is longer than the diameter of the earth (12,756 km along the equator). However, the route saves 30 hours spent on earlier routes via south China.  The port also lowers overland transportation and preservation expenses by 30%. 

Ultimately, the reduced logistical costs will enable Chinese buyers to purchase fresh cherries at half the current price.