Logistics costs for Spanish food and beverage exporters have surged, driven by restrictions in China and the war in Ukraine, with covid still affecting international trade and especially sea transport.

Companies in key export sectors for Spain, such as canned fruits and vegetables and fish, report logistics cost increases of up to 300 percent, and container prices have multiplied many times. The sector notes a difficult outlook, particularly in beverages, amid inflation and widespread raw material shortages.

The problems are most acute in sea transport, with Ukrainian ports blocked by Russia, a reduction in agricultural inputs, and port restrictions in China due to covid measures. These factors have tightened container supply and caused delays across trade routes.

EU leaders at their latest summit discussed the need to facilitate the export of grains from Ukraine to prevent famines in the Middle East and Africa and to help stabilize global prices.

300% increases

Roberto Alonso, general secretary of the Anfaco-Cecopesca fish canned producers’ association, told Efe that raw materials face logistical constraints that undeniably dent the competitiveness of firms and the purchasing power of consumers. [Fepex attribution]

China plays a crucial role in the transport of canned goods, because ports stop and containers intended for export do not arrive as expected, for example to the United States. This situation, alongside other factors, also causes delivery delays and contributes to the rising trend in logistics costs. According to Alonso, the increases can reach up to 300 percent.

“Uncertainty makes it difficult for companies to plan their European objectives without overlooking opportunities in the United States,” he noted. The post-pandemic economic recovery is further hindered by this lack of clarity.

“The industry knows how it operates, but it seeks a more stable environment. For now, there is a state of uncertainty, and the year’s end will reveal whether consumer purchasing behavior will shift in the shopping cart and how Ukraine’s situation will unfold,” Alonso added.

Uncontrolled traffic

The fruit and vegetable trade outside Europe has also been affected by the war and by restrictions at Chinese ports such as Shanghai, according to the Federation of Fruit and Vegetable Exporters (Fepex).

A container for shipping goods to China or Singapore, three years ago costing around 3,000 to 3,200 euros, now ranges from 9,000 to 12,000 euros, making export nearly impossible in some cases. Spain’s fruit and vegetable exports outside Europe, amounting to 520 million euros, fell by around 10 percent in 2021, according to customs data processed by Fepex.

Fepex records two notable price jumps. The first occurred in November 2021, when a shortage of drivers pushed the cost of wheeled transport from Spain to any European destination up by about 20 percent. The second began in March as logistics companies adjusted freight prices contracted with exporters alongside the oil price, causing monthly increases that persist.

Exporters of fruit and vegetables report that most transport cost rises stem from a web of closed contracts between producers and European clients at the campaign’s start, with some parties unwilling to cover transit costs later.

Bosco Torremocha, director of Spirits Spain, acknowledged that inflation, energy costs, and raw materials linked to the war in Ukraine have produced “record” monthly effects on results. He noted that the price of a container has surged from around 2,000 dollars to 20,000 dollars, and that energy uncertainty remains in the short term. Torremocha pointed to the danger of a further supply shock ahead of the holidays and to the potential impact of ongoing labor strikes earlier in the year.