“If the logistics system breaks down in Europe, it’s pretty much over”

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Pareto analyst Carl-Emil Kjølås Johannessen fears the consequences for salmon farmers if transport systems to Asia, USA and Europe are hit harder by the coronavirus situation.

In an interview with Finansavisen seafood analyst Kjølås Johannessen with the investment bank Pareto Securities said that although salmon is relatively safe compared to other sectors, a breakdown of the transport system can be devastating for salmon farmers.

“If the logistics system breaks down in Europe and it becomes illegal, for example, to drive trailers from Norway, everything will be torn to shreds“. But he also emphasised that salmon farmers have a strong balance after many good years, and can withstand a lot before it becomes critical.

On Sunday, SalmonBusiness wrote that the container shipping company NCL is ready to assist with the transport of salmon to Europe and the world.

“We have been working through the weekend to procure a significant amount of refrigerated containers to increase our existing fleet,” said CEO Bente Hetland.

However, Kjølås Johannessen warned that a larger coronavirus eruption may also affect production facilities.

This weekend, Ola Braanaas, CEO and owner of Firda Seafood, one of Norway’s’ richest salmon farmers, said that if the company gets a positive coronavirus test at its processing facility, it will mean that all 50 employees must quarantine. He also said that employees at salmon farms can be infected.

“Then harvest and sales will stop,” said Braanaas.