As South Africa's apple and pear export season approaches, logistics costs are increasing across fuel, transport, and shipping, affecting export planning and market positioning.
Diesel prices are expected to rise by at least R10 per litre, linked to supply chain disruptions. At the same time, fuel stocks in South Africa are under pressure, adding to cost concerns across the supply chain. Appeals have been made to the Treasury for intervention, while the Central Energy Fund has yet to confirm the latest price adjustment.
The impact of the situation is extending beyond fuel, with higher costs expected from packing through to port operations. Exporters indicate that price pressure is building as the shipping season begins.
According to Riaan Ferreira of GF Marketing, shipping costs for stone fruit shipments to the Middle East have increased since late February. Surcharges applied by carriers have reached 300% or more, with freight rates rising to US$10,000 per container. "Shipping to the Middle East has increased to $10 000 per container. Even if the war ends immediately and prices drop, who will cover the increased costs?" he said.
Despite these conditions, supply chain operators are adjusting routing strategies. Kashif Shahzad of Global Star in Dammam said alternative discharge points are being considered. Cargo may be routed via ports such as Khorfakkan and Fujairah on the Arabian Sea coast, depending on carrier availability.
He said: "Prices have increased crazily, as the movement of the fruit is limited." He added that war-related surcharges and rising domestic transport costs are expected to increase final landed costs.
The combination of fuel price increases, shipping surcharges, and supply chain adjustments is affecting export operations as the season begins.
Source: Freight News
