At Yallah we take responsibility for the actions of our business and the impacts we may cause, at every point in the supply chain. It is our job to scrutinise what we do and how we do it, to ensure we are operating with as little impact on people and the environment as possible, global and local. It just so happens that a priority focus of Yallah’s is also a priority for society and governments at large - global maritime shipping.
Despite our staunch view on fossil-fuel powered shipping we recognise its importance to countries whose GDP is made up of exported goods and those who are net importers; the world economy relies on this industry as its life support system, with more than 80% of all goods transported by sea. Port and onward journey operations are set up for goods to be transported on these enormous ships within containers, making the supply chain both operationally and financially efficient. But with approximately 2.8% of global greenhouse gas emissions attributed to the shipping industry, its impact on climate change cannot be ignored. Not to mention the billions of dollars in profits made by the biggest shipping companies in the wake of the pandemic and beyond, the likes of which will never trickle down to communities who need it.
As a company that cares for our environment and makes efforts to reduce our impact we want to decarbonise our supply chain as much as feasibly possible but we also want to control who we spend company funds with. Choosing where we purchase goods and services is how a business votes for the supply chain it wants to operate in; by choosing to ship coffee by fossil-fueled ships we are voting for a world continuing to extract fossil fuels and increase carbon emissions.
When we spend company funds with large multinational corporations like the big shipping giants we have no idea where exactly our money goes and who benefits from it, but we can be certain that local communities do not. When coffee - or any commodity for that matter - is shipped by sail, you become much more involved in the process and the people. It is impossible to ship goods by sail without communicating with the crew and team behind the operation, and what a joy it is too. We then see the people who we are spending money with and can talk about what the funds will be used for and the ships we are supporting. The whole experience provides an immense sense of satisfaction and human connection, with the added benefit of the lowest possible carbon footprint.
Despite the overwhelming benefits to shipping by sail it is not without its challenges. Humans have been moving cargo across the oceans under power of the wind since at least 1600 BC, yet today with all our technology, access to finance and willingness to decarbonise, shipping by sail could not be more difficult. Logistics and port operations are set up for standardised container handling, which makes the whole process of loading, shipping and onward journeys inherently efficient, not to mention cost effective. Though shipping prices change frequently, to ship a Full Container Load (FCL) of 19,200kg of green coffee from Brazil to the UK would cost circa £2000, resulting in a per kg price of £0.10. The same volume of coffee in the largest sail ship would cost £1.20 per kg, and that cost would rise to £4 per kg in the smaller, independent sail ships; an increase of 4000%. For a relatively cheap commodity like coffee this could result in an increase to the cost price of up to 80%, compared to a more expensive product like rum (also shipping from the Caribbean), where shipping may only account for 10% of the cost price.
Cost aside, there are practical matters to consider, like the shortage of vessels available to make such voyages, the lack of demand currently for shipping by sail and the implications on storage and financing of goods. Though it is not impossible, there is certainly a strong head wind. We spoke recently with Alex Geldenhuys, founder of New Dawn Traders (NDT), a collaborative enterprise setup to increase awareness and activity in the world of shipping goods by sail. NDT has been working since 2012 as a broker for shipping various goods by sail, including coffee, from the Caribbean to Europe aboard several cargo vessels. Despite the resurgence in demand for sail ship commodities, myriad issues have plagued operations, from unexpected port fees to changes in ships schedules resulting in delays and missed shipments. These occurrences have impacted the business’ ability to operate reliably, hindered by tenuous relationships between ship owners, port authorities and customers, meaning the future is uncertain at best.
Our goal to ship more coffee by sail remains, though it may only make up a small percentage of our carbon emissions, for us the benefit is broader than that. We are as much about who we work with in the supply chain as how we operate; the relationships we build are an integral part of Yallahs identity. The rapidly increasing need to reduce our total emissions grows evermore important year-on-year and if being completely honest, we are scared of what impacts climate change may have on our community here in Cornwall and coffee producers abroad. If we can reduce our own carbon emissions and act as leaders and an inspiration to others in the industry then that is what we will do.
