In 2020-21, table grape export season was heavily impacted by severe container shortages and increasing transport costs. The situation doesn’t seem to be getting better for the coming season as well.
“The shortage of shipping container availability and higher transportation costs (largely attributed to the COVID-19 pandemic) contributed to lower exports in 2020-21 (120,500 MT) and are expected to constrain exports in MY 2021-22 (forecast at 130,000 MT),” according to a USDA report.
“These volumes are both down significantly from the export record of 152,500 MT in MY 2019/20.”
Exports are forecast to increase by 9,500 MT from 2020-21 to 2021-22 primarily because production is projected to increase by a similar amount.
From 2019-20, exports fell a significant amount because of a shortage of harvest labour, which affected the quality of the fruits as well as the volume of export quality grapes produced.
Continuing this trend is expected in 2021/22, though a modest easing in labour shortages is expected, which will contribute to the forecast increase in exports by eight per cent.
Sea freight costs and challenges have also contributed to the decrease in exports. The COVID-19 pandemic caused this global problem.
Traders report that the cost of shipping containers has increased by three times since the start of the pandemic, which continues to pose significant challenges to the exporters and importers.
