Middle East Conflict: Egyptian IQF Exporters Watch for Freight Impact

Sources in the Egyptian IQF fruit and vegetable markets have told Expana that it is currently too soon to determine the impact of the Middle East conflict on the sector. However, following the start of US and Israeli military action in Iran on February 28, and the ensuing regional turmoil, market players state that disruption to the logistics environment is the primary watch-out factor.

According to market players, there is a business-as-usual market environment in Egypt, and so far, no direct impact on the sector. However, participants add that they are monitoring developments within freight markets closely. Some carriers have announced service suspensions in the region, with Egypt included in some suspension lists. In addition, following renewed threats by the Houthis to resume attacks on vessels in the Red Sea, major carriers have again diverted all sailings away from the route, according to media reports. This exacerbates a logistical challenge for Egyptian exporters that was already in place before the escalation in hostilities, with sources previously noting that uncertainties over Red Sea transit pose ongoing difficulties.

Industry participants expect elevated shipping rates in the near term, though much of the outlook depends on the longevity of the conflict. Market sources in Egypt suggest they will be monitoring developments over the coming weeks.