Middle East conflict drives up South Africa's fruit shipping costs

South Africa's fruit export sector is facing a deepening crisis as the ongoing conflict in the Middle East disrupts shipping routes, strands containers in the Gulf, and sends costs spiralling across the supply chain. The situation is being described as "chaotic" by a spokesperson from Hortgro, as exporters scramble to deal with cargo already in transit.

While the South African stonefruit and grape marketing seasons in the Middle East are expected to wind down in the coming weeks, shipments of apples and pears have barely started, and the first South African lemons are also reported to be on the water. The timing could not be worse, as exporters confirm there is no quick fix to the problem of containers stranded in the Gulf.

Riaan Ferreira, director of GF Marketing in Cape Town, laid out the scale of the challenge: "It is an understatement to say it is complex, with the uncertainty the biggest issue. Anything in the fruit business needs certainty so we can make decisions and move on. There is currently no route to the market. Costs have tripled, and risks have now increased." He added: "Shipping to the Middle East has increased to US$10,000 per container. Even if the war ends immediately and prices drop, who will cover the increased costs?"

Shipping companies still prepared to take cargo to affected regions have raised surcharges by more than 300 per cent in some cases. Beyond freight, growers in South Africa are also facing steep increases in production costs due to rising fuel prices and fertiliser costs. Reports from production areas across parts of the Cape suggest that fears over fuel stock shortages have already triggered panic buying.

Redirecting fruit to other markets is not a straightforward solution. "The specification, size and cultivars which are favoured by Middle East consumers are very specific and this fruit cannot be sold profitably in other markets," said one exporter. Sources in the apple and pear industry noted that smaller counts of fruit are mostly shipped to the Middle East, and packing for the region is now expected to slow down while growers assess their options.

From the receiving end, Kashif Shahzad, head of procurement at Global Star in Saudi Arabia, confirmed that supply conditions are tightening. Shipments are being redirected to Khorfakkan and Fujairah ports in the United Arab Emirates, though most shipping lines have already refused to load cargo for affected areas. "Prices have increased crazily, as the movement of the fruit is limited," Shahzad said, warning that war surcharges and rising domestic transport costs will add further to the final landed cost.

Market prices reflect the strain. South African Royal Gala apples reached US$38.67 per carton in week 11 of 2026, up 24% year-on-year and 49% above the same period in 2024. White seedless table grapes rose 36.2% to US$25.67 per carton, while red plums surged 47.2% to US$16.40 per carton.

Growers describe the situation as "very serious" from both a production and sales perspective. "Our operations are based on selling our whole crop profitably and many years of developing good customer relations in the region is now under threat," they noted. Exporters say they are first focused on mopping up stranded containers to avoid further losses, adding: "Thereafter we have to see how we tackle the rest of the season." Table grape industry body Sati has not yet commented on the fallout or its cost implications for the sector.