The diversion of ships away from the Red Sea has put a strain on the global supply chain in general. For perishable and seasonal goods in particular, diversions could be problematic if they become the norm.

Rerouting vessels over a longer distance impacts sailing schedules, space, and equipment availability globally. Transit times could extend up to three weeks on some trade lanes.

This means perishable items, such as fruits and vegetables, will have to spend more time onboard. By the time they reach the market, they have already spent a large percentage of their shelf life at sea.

If we add the time they have to wait until equipment is available at the port of origin, it is easy to see how this could be critical for this market segment.

Grapes and citrus fruits as examples

Experts believe exports between Asia and Europe are among the most impacted by the Red Sea situation. Several seasonal fruit types had an early comeback this year brought on by agreeable weather conditions. To minimise time and risk of loss, several companies chose sea-air logistics options to market their production.

India's grape season

One example is the grape season in India, which usually starts in December and continues until March.

According to the Indian Express, up until the end of January 2024, only 1,226 containers were exported from India to the European and US markets. This is significantly lower than the 6,796 containers shipped in the same period last year.

Some exporters are concerned that shipping grapes on vessels will no longer be commercially viable. The increased costs caused by the diversions could make their business less competitive.

Amit Kalya, managing director of Indian grape exporter at Kalya Exports, says, "The European market has been very important for the Indian grape industry. Due to the current situation, we're unable to commit deliveries to our supermarkets with confidence."

Egyptian citrus fruit

High temperatures in the Mediterranean boosted citrus fruit production this year. Together with Spain and Italy, Egypt is considered one of the important producers of this fruit in the region.

However, experts estimate 30% to 40% of the production cannot be exported. The political situation in the region makes access to the Asian markets more complicated.

The European market could face another issue as well. "If all of the Egyptian produce will be poured into the European markets, it will be a considerable problem for both Italy and Spain," one European exporter tells news outlet, Fresh Plaza.

Experts retain an optimistic outlook

Kuehne+Nagel's Global Head of Sea Logistics Reefer, Frank Ganse, raised concerns about a "domino effect" that could negatively impact the reefer trade.

"Loaded reefer containers will arrive late in Asia and will only be available in South America with a delay, where fruit exporters are waiting for equipment," he tells German newspaper DVZ.

Nevertheless, Ganse finds the market "relatively relaxed," attributing this to the capacity made available after the pandemic.

For example, the new ships and services added last year by carriers ONE and OOCL on the South America East Coast and Europe helped expand reefer availability on this route by around 60%, experts say.

More capacity will be made available in the upcoming months. Both Hapag-Lloyd and MSC will introduce a seasonal service to cover the citrus season from South Africa starting in May this year. Hapag-Lloyd's service is set to add an average of 800 plugs per sailing.