Approximately 167 containers of South African stone fruit are currently at sea after shipping routes were disrupted, forcing vessels to reroute. The shipments were originally destined for Gulf ports, but access was blocked following the effective closure of the Strait of Hormuz. Exporters are now seeking alternative buyers as the fruit remains perishable.
"The quality of the fruit when it left the packhouse was absolutely 100% perfect, but fruit obviously has a timeframe, and that's the big problem we now face," said Terry Gale, chairman of Exporters Western Cape.
Rerouting has increased complexity and costs. Different markets require different certifications, which is causing additional delays. Freight rates have also increased, with container costs rising from around US$4,000 to US$8,000.
"It's ended up being South Africa's problem, because we have to move the fruit. We can't let it get rotten at sea," Gale said.
South Africa is Africa's largest stone fruit producer and the world's second largest citrus exporter. The Middle East accounts for a share of the country's approximately US$1.3 billion agricultural export trade in the region. Around 90% of fruit shipments destined for this market have been affected, according to supply chain sources.
Farmers had anticipated impacts ahead of a fuel price adjustment, with some stockpiling diesel and certain filling stations introducing supply limits.
The government has introduced relief measures, including a temporary reduction in the general fuel levy, and indicated that fuel reserves remain stable in the short term.
Source: CGTN
