The article highlights the logistics challenges global markets are facing, with a particular impact on the fruit export industries of Egypt and Peru. Egypt, the world's largest orange exporter last year, has seen a significant decrease in demand and a loss of the Russian market, leading to a potential undersupply of 40% of its orange harvest this year due to increased costs and market unpredictability. The country is shifting its focus to the European market, but competition is tough and volumes are small. Meanwhile, Peru, a major avocado exporter, has also been negatively affected by the crisis, seeing a decrease in both volume and value of exports to Russia, Spain, and the Netherlands, due to transportation issues and consumer disinterest.
Egyptian orange exporters are struggling with market instability in Russia, currency and payment issues, and cessation of shipping in some ports, coupled with a drop in demand and prices. Some have pivoted to the European market, while attempting to sell to Bangladesh and India, but face low demand and competition from China. The cost of sea transportation and packaging have significantly increased, affecting the overall production cost.
Peruvian avocado producers planned to increase exports this year but have experienced a decline in both volume and value due to problems in maritime transportation to key markets like Russia, Spain, and the Netherlands. This has led to consumer disinterest, resulting in a significant decrease in imports.