Western Cape exporters and the agricultural sector are already feeling the effects of logistical disruptions and rising input costs arising from the Middle East war.
Cape Chamber of Commerce and Industry president Jacques Moolman highlighted ongoing cargo disruptions at Cape Town Port in a statement on Friday, saying some Cape Town shipments to or transiting the Middle East are on hold until further notice.
Major shipping lines, including Maersk and Hapag-Lloyd, have rerouted vessels around the Cape of Good Hope to avoid the escalating conflict in the Middle East and the closure of the Strait of Hormuz. Moolman noted that the shift has caused a 112% surge in Cape diversions since early March, adding about 10–14 days to transit times and significantly increasing fuel and insurance costs for global trade.
“On Wednesday, a major international shipping line issued instructions to Cape Town shipping agents to remove and unpack their containers already packed for export at the Cape Town Container Terminal,” Moolman said.
Agri Western Cape reported that the timing of the conflict is particularly difficult for an agricultural sector on the brink of its main grain planting season and facing a spike in diesel and fertiliser costs — two non-negotiable inputs.
Exporters Western Cape (EWC) said the conflict has already had knock-on effects on freight costs, fuel prices and supply chains.
“The Middle East — and the UAE in particular — is a growth market for Western Cape fruit,” EWC chair Terry Gale said. “The immediate challenge now facing exporters is what happens to containers that are already on the water or in transit to these markets,” he said.
Gale has called for close engagement between the government and industry to mitigate potential negative impacts.
The immediate challenge now facing exporters is what happens to containers that are already on the water or in transit to these markets
— Jacques Moolman, Cape Chamber of Commerce and Industry president
Hortgro, which represents the deciduous fruit industry, reported “massive disruption” for apples and pears and the last of the stone fruit exports.
The sector exports about 21% of total pear exports, 12% of apples, 60% of apricots, 34% of peaches, 12% of nectarines and 17% of plums to the Middle East.
Hortgro GM for trade and markets Jacques du Preez said the major difficulty is for fruit already on the water bound for the Middle East, which has to be diverted to other markets. There are 675,000 cartons of stone fruit in transit and 900,000 cartons of apples and pears.
South Africa’s Perishable Products Export Control Board conducted different inspections for fruit bound for different markets, so it is impossible to send the products somewhere else. Requests have been made to the board to allow inspected fruit bound for the Middle East to go to India.
The problem is that India has specific marking and in-transit cold treatment requirements, and Du Preez said negotiations are under way with the Indian government for it to be done on arrival rather than in transit.
Saudi Arabia, for example, requires fruit to be tested for heavy metals, so a diversion there is not a simple matter.
Du Preez said lower prices in oversupplied alternative markets is another issue. Shipping lines are imposing additional tariffs if they cannot offload the fruit.
South African Table Grape Industry CEO Mecia Petersen said the table grape sector will be affected by the events in the Middle East with produce on the water being most exposed.
“Exporters have needed to respond in real time and are making plans to divert to alternative markets where feasible.… It is an intricate process that requires consideration of various factors such as phytosanitary and packaging regulations and possibly co-ordination between relevant government departments.”
Petersen said shipping lines are diverting to alternative ports.
“In the short term, consequences may include over/under supply of markets and price pressure. There will be cost implications — additional surcharges by shipping lines and likely loss of income from shipments that are unable to reach the intended markets.”
Petersen noted that as 4% of South Africa’s table grape production went to Middle East markets in 2024/25 the sector would be less severely affected than other commodities.
Congestion in the global supply chain is expected to have ripple effects in what has been a difficult season for the table grape sector.
The tourism sector also faces potential negative and positive effects, said vice-chair of the chamber’s tourism and hospitality portfolio Lesego Majatladi. He said disrupted routes might cause travellers to reconsider long-haul trips, particularly as Dubai serves as a global interchange.
“However, the Western Cape may also benefit from being viewed as a stable and safe destination,” Majatladi said. The challenge for the region is to strengthen its global positioning as a secure alternative amid global travel interchange uncertainty.
The vice-chair of the chamber’s oceans economy portfolio, Vanessa Davidson, noted that the risk is no longer theoretical. “One marine manufacturing company has already cancelled attendance at the Korean International Boat Show due to airspace closures,” she said.
Linda Ensor
www.businesslive.co.za