Fruit exports from Chile, Peru and Ecuador are hampered by the Panama Canal

Restrictions on the passage of ships in the Panama Canal, caused by the country's drought, are beginning to weigh on shipping capacity for the export of perishable products from the west coast of South America, according to the recently published Reefer Shipping report from Drewry. A confluence of factors ranging from climate impacts on key fruit crops to weak Chinese demand and geopolitical tensions are impacting the short-term outlook. Reefer volume is forecast to decline by 0.5% in 2023 compared to last year. According to the report, this decline follows last year's contraction of 0.8%. That will be two consecutive years of decline in this market. Fruit exports are declining There is a remarkable trend of declining exports from almost all major fruit regions, partly due to the strengthening effects of the El Niño climate phenomenon. A shortage of quality has led to a decline in the export of top and stone fruit, exotic fruit, melons and soft fruit. The banana trade has also ...