Red Sea crisis could affect New Zealand kiwifruit exports

It looks like New Zealand consumers will soon feel the cost of the disruption to shipping lanes caused by attacks in the Red Sea. In recent weeks, Iran-backed Houthi rebels have carried out several attacks on container ships passing through the busy cargo route. Almost 15 percent of world maritime trade passes through the Red Sea, which leads to the Suez Canal.

New Zealand and 11 other countries have issued a joint statement calling for an immediate end to attacks on container ships in the Red Sea. According to Carel Bezuidenhout, a lecturer in supply chain at Massey University, the conflict increases insurance costs for shipping companies traveling through the Red Sea. Bezuidenhout emphasized that if the conflict continues, all trade sectors could be affected, but some sectors, such as the kiwifruit sector, could be particularly hard hit. “When we start harvesting kiwis, we want to get that fruit to Europe quickly, and adding two weeks around the Cape of Good Hope would be a problem for us.”

A Zespri spokesperson said: “Our kiwifruit are shipped to Europe via the Panama Canal and do not use the Red Sea route. Each season we work extensively with our long-standing shipping partners to deliver our fruit. As we prepare to export our first harvested kiwifruit to Europe, scheduled for mid-March, we will be able to deliver our fruit via other routes. We will continue to monitor the global maritime situation, including potential impacts.”

Source: rnz.co.nz