The escalation of war in the Persian Gulf area and the lack of maritime security around the Strait of Hormuz have caused the immediate interruption of trade routes to the countries in the region. This has coincided with the start of the Spanish citrus season for these destinations, especially for Lane Late oranges and oranges from the Navel group, at a time when Egyptian citrus fruits are exerting high pressure on the European market.
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"In our case, the impact has been direct: all orders have been cancelled and, at the start of the export campaign to these markets, there is currently no real possibility of exporting normally," says Manuel Baides, CEO of Author Fresh. "We were just starting this week with the first containers, and we were expecting to deliver between 150 and 200 containers throughout the season."
According to the exporter, there is still demand at the destination, as during the Ramadan season, there is a greater consumption of premium quality European products; however, without logistical operations, there can be no trade. "Right now we have no way of shipping, so the campaign has been brought to a complete halt."
Baides says that all shipping companies have canceled their routes to Middle Eastern countries, so there's no way to go ahead with the programs that were due to start in week 10. "It's impossible to reach our destinations and fulfil the programs that were already scheduled. All fruit trade has come to a standstill."
The increased risk in the area is also creating logistical and financial uncertainty, especially for refrigerated goods that depend on predictable transit times. "We already know that there will be increases in insurance and freight costs; that is obvious. But I insist: the problem today is not the cost. The problem is that there are no routes available and we have no idea when we'll be able to ship the citrus that was intended for the Gulf countries."
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"In recent years, trade with the Middle East has been a successful alternative both for us and for other important companies in the sector. It has helped decongest the European markets, which are increasingly saturated with fruit from third countries such as Egypt. Where will these volumes be redirected now? The problem is far from simple."
The situation is making it necessary to rethink all sales planning. "In citrus, schedules are strict. If the season comes to a screeching halt at the beginning, then relocating won't be just a matter of changing destinations. It will have an impact on calibers, packaging, and market balance."
In the face of this totally uncertain scenario, Baides is calling for caution. "We don't know how long the war will last. The United States and Israel claim that it could be over in 2 or 3 weeks. The truth is that we don't know what will happen in the next few days. Nor would it be advisable for the reactivation of these markets to take too long, because the Southern Hemisphere campaigns will start soon. We now need to keep the volumes under control, protect the quality, and maintain direct communication with clients until logistics operations can be reactivated," says Manuel Baides.
© Author FreshFor more information:
Manuel Baides
Author FRESH, S.L.
Tel.: +34 961 018 189
Tel.: +34 615104344
[email protected]
www.authorfresh.com
