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How to select a good shipper for coffee beans from Papua New Guinea

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How to select a good shipper for coffee beans from Papua New Guinea

24/06/2022

Small beans, big industry.

Green coffee beans are Papua New Guinea’s second largest agricultural export1. Roughly 2.5 million people, nearly 30% of the country’s total population, rely on this industry for their livelihood.

However, due to the fragility of green coffee beans, and the challenging terrain and climate conditions exporting this agricultural product from Papua New Guinea presents a unique challenge.. To maintain  high quality coffee beans, and to ensure a reliable supply chain selecting an experienced and reliable shipping line is important.   

It’s all about time.

Coffee beans are hygroscopic, which means they absorb and retain moisture from the air. This feature introduces the biggest challenge for shipping product—mold, a micro-organism that prospers in a humid and warm environment over time.

The differing climates of Papua New Guinea ranging from the temperate highlands, to hot and humid export port of Lae puts a focus on Transit time, and a value in a supply chain partner who is familiar with the country and commodities unique requirements.

While techniques like air-tight packaging and temperature-controlled storage can be applied to contain the mold, the most direct and effective solution is still to shorten the shipping time. This will not only keep the beans as fresh as possible, but also accelerate the supply chain for the coffee traders.

Be local in Papua New Guinea…

The major coffee export countries are usually located in South America and the Pacific, regions with rich local cultures and unique business setups.

For example, in Papua New Guinea, almost 90% of the coffee beans are produced by small holders, and the local transportation infrastructure is limited. Accordingly, “first-mile service,” like product collection, bulking, storage, and customs clearance, will usually be done by local freight forwarders. These companies directly connect with the community and have greater local access.

The same goes for the ocean carrier . There are many shipping companies competing in this market, but not all of them enjoy the same level of connections with the community and with their freight forwarding partners. The truth is, in a highly specialised and localised industry like green coffee bean exports from Papua New Guinea, global players are not necessarily better than smaller ones. What’s more important than size is a local connectivity. They will help to tackle the subtleties in the workflow and reduce the chance of surprises.

 

So what now?

As a coffee trader, you may be sitting in an office in Australia, Asia, North America, or Europe, and decide to nominate the shipper to transport your coffee beans from Papua New Guinea. If you are not sure how to deal with the uncertainties remotely, you may refer to the following factors that largely impact coffee exports:

  • Shipping time: We know that this is the most important thing to consider in maintaining high quality green coffee beans. But how do the major players perform exactly? We did a schedule check-up for the transit time from Lae, Papua New Guinea to major destination ports in May 2022. And here is what we found:

  • As seen, Swire Shipping is always one of the top 2 options in shipping from Papua New Guinea. And the company ranks higher when it comes to speed in shipping to Australia as the second-fastest shipper doesn’t even come close to it.

    Hapag Lloyd is the fastest shipper from Papua New Guinea to the US, slightly better than Swire Shipping. On the other hand, ANL provides the shortest transit time to China. In term of shipping to Europe, the 3 major competitors, Maersk, Swire Shipping and Hapag Lloyd generally perform the same.

  • Local connections: Compared to the big global players, Swire Shipping offers dedicated services to the Pacific region and Papua New Guinea is one of its most important markets. The company enjoys a strong bond with the local community, cares about sustainability of the region, and has built strong relationships with the freight forwarders.
    Most of the Swire Shipping’s business is in the Pacific region. That’s also why it has a clear advantage in transit time between Papua New Guinea and Australia.

  • Others: Besides these 2 major factors to consider for shipping coffee from Papua New Guinea, there are some other things you can think of too. For example, all the shippers mentioned above provide digital customer solutions on their websites. You may explore more to see which one suits you best and saves the most time for you. Plus, shippers like Swire Shipping are promoting integrated logistics solutions that cover more services like land transportation, warehousing and customs clearance. It’s definitely a big boost to the efficiency if all the steps in the journey are taken care of by one shipper.

An outlook of the coffee bean supply chain in Papua New Guinea

Shipping companies are competing in various dimensions for shipping coffee from Papua New Guinea. They provide better service so that you can worry less and focus more on your business. Short transit time and great local connection are the top things you need to consider for selecting a qualified shipper. And emerging factors like digital solutions and integrated services are also worth notice.

End

Reference:
1. https://en.wikipedia.org/wiki/Coffee_production_in_Papua_New_Guinea
2. https://documents.worldbank.org/curated/en/899311468167958765/pdf/283000REVISED0Coffee1Markets01PUBLIC1.pdf
3. https://worldcsoffeeresearch.org/focus-countries/papua-new-guinea


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