Shipping company to help boost South African citrus exports
The Citrus Growers Association of Southern Africa (CGA) has welcomed the announcement that global shipping company Hapag-Lloyd will be helping to export citrus from the ports in Durban and Gqeberha.
The new service will run by the end of May, in time for the bulk of the 2024 season’s citrus, until September.
Hapag-Lloyd’s entry is a direct result of an advisory project launched by a number of fresh produce associations, including CGA, in 2022.
In the same year, a study by the Bureau for Food and Agricultural Policy found that four out of five citrus growers made a loss, with high shipping rates a major contributor to the decrease in profitability.
The CGA’s role in facilitating Hapag-Lloyd’s entry into the market was undertaken with the aim of increasing both capacity and competition, to ensure long-term sustainability for the sector.
Recent shipping price spikes owing to attacks on vessels in the Red Sea, as well as drought-related complications affecting the Panama Canal, have shown how exposed many fruit exporters are to increases in shipping rates.
CGA believes any measure that can introduce some stability and competition into the shipping market is a step forward.
“The citrus industry and the broader economy need as much access to shipping as possible,” the CGA explains.
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