Washington cherries hit a few bumps on the way to airports

Each summer the Pacific Northwest sees a glimmer of sunshine and a large number of cherry exports to Asia. This year’s crop may take a different route from orchard to export as a decrease in passenger flights requires shippers to explore different transport options. Cherry season starts in California in mid-May and is followed by the Washington cherry season in mid-June, resulting in a large number of exports from the West Coast to Asia, where there is a high demand for the fruit. In the air cargo world, cherry exports create a peak season in the perishables market each summer. The Washington harvest has been smaller than years past due to a rainy start to summer, according to Michael Piza, vice president of corporate sales for Apex Logistics International. Cherry producers are also facing an added challenge at farms and packing-houses due to COVID-19 and the social distancing regulations needed to keep employees safe. Tom Green, manager of air cargo operations and development at Seattle-Tacoma International Airport (SEA), said that while cargo in general has taken a hit, he has seen average levels of cherry exports through the airport. One major difference between 2019 and 2020 cherry exports is the lack of bellyhold shipping due to decreased passenger flights. SeaTac Media Relations Manager Perry Cooper said passenger flights are down 87% year to date at SEA, and Green said the airport has seen a 21% decrease in export tonnage year to date. Much international, and specifically Asian, air cargo service depends on bellyhold capacity, Green said, greatly reducing overall cargo capacity. Green also noted a lack of the usual charter and seasonal service from Chinese airlines, including China Cargo and Air China Cargo, that typically run during cherry season. “Whether that is COVID related or is also related to overall trade policy at the federal level and restrictions that may be in place on Chinese carriers and Chinese airlines, I’m not exactly sure,” Green said. “But we are not seeing the participation that we usually see from Chinese airlines.” U.S. trade with China has been increasingly difficult due to a trade war between the two countries as well as limitations on passenger flights between them. Cherries are considered a luxury import in China so prices do not change much year to year, but tax rates are more favorable this year compared to years past. While Chinese participation may be down, other Asian nations are still active in cherry transportation, Green said. Previously Korea, Vietnam, Taiwan and Japan were among the top destinations for cherry exports, and Green said SEA has continued to see strength in those markets, especially Korea which is serviced by new cargo-only flights from Korean Air. The current reduced bellyhold capacity has made shippers consider different shipping options this year for cherry season. Los Angeles (LAX) and San Francisco International (SFO) airports export the majority of California cherries. However, due to COVID-19 they may export a higher number of Washington and Pacific Northwest cherries as well since California airports continue to see high levels of air cargo activity from Asia due to the import of PPE and other commodities, and therefore more capacity for perishable exports back to Asia than SEA. “We are the regional gateway for our exports here in the Northwest, but because of the sheer size and market control of Los Angeles, as well as infrastructure, investments and capacity, Los Angeles has a gravitational effect that could pull some of our exports out of this area,” Green said.

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