The second shipping disruption in the Red Sea, in early January, has put Egyptian fresh produce exporters in a difficult situation, unable to export to key markets in Asia. Mina Eissa, an Egyptian exporter of a wide range of fresh produce, reports on the situation.
Mina says: "It's a complete mess. Everything is uncertain and we're afraid to make any decisions or commitments. We thought the situation was coming to an end when Maersk lines resumed their operations with direct callings, until Wednesday when they again announced a pause until further notice."
It's not easy to find alternatives to the major shippers who have suspended their operations, adds Mina, " It's a high risk for any shipper or carrier to use the Red Sea routes. Alternatively, carriers have proposed other longer routes via the Cape of Good Hope, which are not only longer, but also significantly more expensive."
As a result, exporters had to cancel their deliveries to Asia. The markets affected depend on the crop. In the case of citrus, Mina says: "All shipments to the Far East, especially in Malaysia, Hong Kong, Singapore and Sri Lanka have been severely disrupted." Exporters had to redirect shipments to other customers and other markets, "all shipments had to be diverted to the EU or the Middle East, which had an impact on supply, demand, prices and other technical issues such as MRLs which mainly concern citrus," explains Mina.
As for the impact of this situation on prices, "some have risen slightly and others have risen significantly depending on shipping line, availability, accessibility and transit time", says the exporter.
Egyptian exporters are helpless and waiting for the resolution of the conflict in the Red Sea and the resumption of normal shipping traffic, says Mina. "Going through the Cape of Good Hope is not the best scenario and makes exporters reluctant to ship their goods for all the reasons I've mentioned. The only thing that makes sense today is to bring things back to normal and allow ships to pass through the Red Sea."
"And this needs to happen urgently. It's quite scary what's going on as we're about to start the Valencia season in 2024. Egypt has around 1.8 million tons to export, and at least 20% of this volume is destined for the Far East and China," concludes the exporter.
For more information:
Mina Eissa
Rejoice Pro
Tel: +20 128 844 4469
Email: mina@rejoicepro.com
www.rejoicepro.com