As Coronavirus Spreads, Cruise Ships Face Crisis, Food Suppliers – Manufacturers, Co-packers And Distributors May Be Stranded With Costly Food Surplus

Cruise Ships Face Crisis

The economic impacts from the Corona Virus on the global economy are already being felt. The cruise line industry is being hit early, fast and hard. A further crushing blow to the cruise industry took the form of a headline in the Los Angeles Times on March 9th: “U.S. has a Corona Virus Warning for its Citizens: Don’t Travel on Cruise Ships.”

As consumers cancel their cruises, and as various states require suspension of cruises, cruise lines may find themselves with an unmanageable and costly abundance of a huge range of refrigerated and frozen food products, and food-related supplies. Marvell Foods, a buyer and broker of surplus and salvage food products is prepared to assist by mitigating losses to help cruise lines, and their various food vendors – such as manufacturers, co-packers, and distributors, sell excess food products they may find themselves, unfortunately, stuck with.

“There’s a good chance this food will go to waste,” says Marilyn Raybin, President of Marvell Foods, one of the nation’s leading food trading companies. “There is probably going to be an extremely serious down-line economic impact to all these various food chain suppliers,” says Raybin. Raybin points out that the cost to manufacturers simply for storage of these “backlogged, and warehoused products” that the cruise lines might not even want will likely end up sitting in storage. “Storage takes up space and is costly,” says Raybin. “No one likes paying storage costs on the product that has nowhere to go,” adds Raybin.

“A way to mitigate some of these expenses is to sell these products, and recoup some of the costs, by moving them into other outlets,” says Raybin, a third-generation player in the food industry, “this is what we specialize in, whether for retail or food service, we have an enormous network of buyers both nationally and internationally.” If you are a food manufacturer, supplier, co-packer or a distributor who is impacted in some way by these events, we will do our best to be of service to you. Contact us now.

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