In the aftermath of the vote on Italy's involvement in the Aspides Mission in the Red Sea, the fallout on Europe from wars and sanctions, and the economic consequences of the crisis in the Suez Canal were the focus of the March 6, 2024 episode of the Rai program “Re Start.” About the economic consequences, the testimony of two fruit and vegetable operators was also collected.
“The situation in the Middle East is hurting exports of our apples and the Italian fruit and vegetable sector and the Mediterranean basin, in general,” said Enzo Garnero of Piedmont-based Sanifrutta, a member and partner of the fruit and vegetable producer organization Joinfruit. "We record about 50% fewer exports to Middle Eastern, Indian and Asian markets.
“Apples are perishable products, but they travel in refrigerated containers. In reaching markets to the East, where we have invested for years in promoting Italian produce, there is one aspect to consider: having to circumnavigate Africa, with transit times almost doubled. Benefiting from this situation are fruit producers in the southern hemisphere, who do not have to cross the Red Sea, and some producing countries in northern Europe, which through the large ports of Germany, the Netherlands and Belgium are able to reach Asian destinations with transit times lower than ours.”.
With reference to costs, Massimo Delpozzo of the company Northwest, which specializes in the transportation of fresh produce, also spoke at the program's microphones. “We are in the middle between fruit and vegetable companies, as in this case Sanifrutta, and shipping companies. So we manage their flows around the world, using refrigerated containers. Until November 2023, there was a fairly stable market, with competitive freight rates. The crisis in the Red Sea subsequently led to an increase in prices, especially to Middle Eastern destinations, between 30 and 60%.”.
According to Drewry Container Index's weekly surveys, in the first week of March 2024, spot freight rates for container shipping between Shanghai and Genoa reached $4,449 per container, 95% more than a year earlier.
Massimo Delpozzo
The really worrying factor, according to Delpozzo, is that “if fruit and vegetable companies get to lose 50% of exports, as a result we also lose the same percentage of work, since we are part of the same supply chain. Therefore, we hope for a resumption of trade in the Suez Canal as soon as possible, because Italian fruit and vegetables are highly valued in the world, and this situation is dramatically penalizing exports.”.
“The example of Sanifrutta is meant to be food for thought and also a wake-up call about the serious problems that plague our customers, and consequently us, in terms of volume and ability to remain commercially competitive internationally,” Delpozzo commented following the airing of the program.
For more information:
www.nord-ovest.it
www.sanifrutta.com
www.joinfruit.comPublication date: Mon Mar 11, 2024
