Red Sea Crisis Disrupts Egypt’s Orange Exports

Frequent attacks by the Yemeni Houthi rebel group on civilian vessels have forced container shipping operations along the Red Sea and Suez Canal to come to a standstill. At present, shipping companies remain indecisive about whether to resume standard routes or opt for diversions, thereby heightening uncertainty within the supply chain.

The Suez Canal and Red Sea are crucial waterways for Egypt, and the suspension of shipping operations has posed a severe crisis for Egyptian citrus producers and exporters. Consequently, there is now a shortage of Egyptian oranges on Asian markets. At present, Egyptian exporters are actively exploring alternative routes for fruit shipping, while growers have found themselves compelled to suspend orange harvesting owing to concerns about a potential collapse in prices. However, identifying viable alternatives is challenging for Egyptian exporters, because diverting around the Cape of Good Hope would not only add considerable distance but also increase costs.

Egypt is the world’s third-largest exporter of fresh oranges after Spain and South Africa. Moreover, it is the second-largest supplier of oranges to China after South Africa. As oranges in the Southern Hemisphere are typically harvested from June onward, Egypt is a key source of imported oranges during the winter season in the Northern Hemisphere, catering to the demands of China and Southeast Asian markets.