Ramzan and Easter are important periods for fruit and vegetable exporters supplying West Asia and Europe. Several exporters plan production and shipments around these dates, with some sourcing seeds and growing vegetables specifically for European markets, where January to April is typically a lower production period.
Exporters report that logistics disruptions are affecting shipments. "We were ready with our consignments of onions for Europe, but now we have to deal with higher freight, longer sail times of 40-45 days (instead of 20-25 days), and a lot of uncertainty. Even transshipment hubs have been hit," said Danesh Shah, a Pune-based fruit and vegetable exporter who had booked large orders for West Asia and Europe.
Shah said the company is attempting to move banana shipments originally destined for Gulf markets at discounted prices. At the same time, he indicated that part of the onion supply may be lost due to delays and transport disruptions.
Kushal Thakkar of Kay Bee Exports said the company has reduced spot purchases as goods in transit face delays, and air freight capacity is limited or too costly. Thakkar exports to supermarket chains in the United Kingdom and the United Arab Emirates. The company supplies a range of fresh vegetables, including okra, lauki, and baby corn.
Exporters report higher freight rates where space remains available. Airlines are charging premiums of about 30 to 40 per cent for cargo shipments to Europe.
Air cargo routes through West Asia have also been affected. Airports in the region, which previously handled a large share of traffic moving to Europe, are currently closed, limiting available capacity.
Sea freight costs have also increased. A 20-foot container to Saudi Arabia has risen to about US$2,600 within 48 hours as shipping lines introduced a war-related surcharge of around US$2,000.
Export industry groups have advised members to reconsider shipments destined for certain regional markets or redirect cargo to alternative destinations where possible. They have also recommended that exporters request cost sharing from buyers where shipments have already arrived and consider booking future cargo on a free on board basis due to uncertainty in freight and insurance costs.
Thakkar said some buyers in Europe remain willing to pay higher prices for food shipments and confirmed that his company has continued loading cargo. However, he noted that uncertainty in logistics conditions remains a challenge for exporters supplying international retail programs.
Source: The Times of India
