Congestion in the Panama Canal affects Ecuador's banana exports

Published 2024년 3월 26일

Tridge summary

Ecuador's banana exports have experienced a decline in the first two months of 2024, with a 2.76% decrease reported by AEBE and a more significant 3.51% drop noted by Acorbanec. This downturn is attributed to a variety of factors, including Panama Canal congestion, reduced demand from key markets such as the United States, the European Union, and Russia, inflation impacting consumption, an increase in the minimum support price for bananas, phytosanitary issues, adverse weather conditions, and attacks on cargo ships by Houthi groups in the Red Sea. These challenges have led to a decrease in both the quality and quantity of banana production, resulting in a notable decline in exports.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Ecuador's banana exports for January and February 2024 have a decrease of 2.76%, according to AEBE. According to Acorbanec's analysis, the decrease is greater, it is 3.51%. We invite you to read: Banana exports decline due to less production The drop in the sale of fruit to the world is for several reasons. For example, one of the main buyers is the United States and delays in banana shipments persist due to congestion in the Panama Canal. Here the decrease was 0.37%, José Antonio Hidalgo, director of the Association of Banana Exporters of Ecuador (AEBE), told Diario EXPRESO. He added that along with the United States there are other markets that have a reduction in demand for fruit, such as the European Union (-6.88%) and Russia (-21.82%). Between the three markets they account for 60% of Ecuador's exports. In the case of the European Union, the factor that makes them buy less is inflation; high prices cause a decrease in consumption, according to AEBE. For Acorbanec, the ...

Source: Expreso