Two countries, Ecuador and Egypt, find themselves grappling with considerable challenges hindering their export markets, particularly impacting their respective fruit industries, bananas and citrus. The difficulties, which began surfacing prominently at the start of 2025, have drawn the concern of industry leaders, reflecting broader issues of logistics and market dynamics.
According to the Association of Banana Exporters of Ecuador (AEBE), export logistical problems are deriving primarily from the lack of available shipping containers. AEBE executive president José Antonio Hidalgo highlighted this issue, noting how it has turned "into a core obstacle for Ecuadorian exports, particularly affecting the banana sector." He explained, "The problem arises due to the interruption in the rotation of containers, since ships from Asia and other regions are arriving late, which prevents their timely replacement.”
Hidalgo pointed out fierce competition for these containers, as neighboring markets, such as Chile and other Southern Cone countries, absorb much of the available shipping capacity. The current priority of shipping companies to cater to more profitable routes has left Ecuadorian exporters at a disadvantage, leading to increased freight costs. This situation compounds the existing challenges the country already faces.
"Delays in shipments not only increase logistics costs but also affect product quality, especially in sectors such as bananas, where a delay in export shortens the shelf life of the fruit in destination markets," Hidalgo emphasized. Noticing these logistical problems, many are concerned about how such delays might disrupt their relationships with international customers, particularly within the United States and Europe.
Richard Salazar, executive director at the Association for the Marketing and Exportation of Bananas of Ecuador (Acorbanec), confirmed the significant impact on the banana sector. Salazar noted, "The banana sector was significantly affected, especially at the start of January, but we are now observing some improvement." He did share, nonetheless, reports of shipment delays from specific lines, including one service not showing up, underlining the fragility of the situation.
Geopolitical factors aggravate these global logistics challenges as well. The Suez Canal, one of the world's most significant shipping routes, has been under threat due to Houthi rebel attacks, impacting maritime security. Because of the need to divert routes, vessels have been taking longer periods for transit. "This instability alongside port congestion limits the export capacity for countries like Ecuador," Hidalgo explained, pointing out this web of complications creates bottlenecks hampering trade.
While Ecuador's banana industry struggles, Egypt faces its own unique issues within the citrus export market. Muhammad Shaker, Export Manager at Almansi, echoed similar concerns, noting, "We are currently seeing a drop in demand compared with the same period last season, particularly concerning Europe." This decline relates mainly to the availability of larger-sized citrus fruits, alongside rising prices for oranges within domestic markets.
Shaker identified another significant hiccup when the Egyptian government reduced subsidies for agricultural exports from 8-10% to just 2.5%. This adjustment, he said, was expected to lead to increased prices and reduced volumes of export, which is what the market is now experiencing. Coupling this challenge with the production shortfall for large oranges, exporters find themselves at crossroads.
Demand for citrus has dropped, but markets like Bangladesh and Brazil have shown some resilience and are still seeking Egyptian fruit. "Demand has, nevertheless, remained strong, especially for oranges and mandarins within Russia," Shaker added, maintaining cautious optimism for upcoming demand from India if prices remain competitive.
Similar to their Ecuadorian counterparts, the citrus exporters face hurdles posed by price fluctuations and competition within both local and destination markets. Rising prices have affected primarily the exporters more than the growers or larger companies, who can more readily adapt to competitive pricing.
The road ahead remains uncertain for both Ecuador and Egypt's fruit sectors. Logistical bottlenecks present formidable challenges, and industry leaders remain hopeful for structural solutions, especially improvements to port infrastructure and container allocation. Without these changes, the export sectors of both countries may see their competitiveness wane significantly.
Both Hidalgo and Shaker symbolize the pressing concerns of contemporary exporters battling global market challenges. With additional geopolitical uncertainties and fluctuated demand patterns, it is clear both countries’ futures will heavily depend on their agility to navigate through such turbulent waters.