Buyers in Russia can no longer buy the product due to the devaluation of their currency, several ports suffer major complications and ships refuse to go to a war zone due to uncertainty and danger. Due to this situation, around 765,000 boxes of bananas are at risk of not being exported this week.
Russia and Ukraine buy almost a quarter of the total banana exported by Ecuador. In Odessa, a port city on the shores of the Black Sea, in southern Ukraine, is besieged by Russian troops and the port is paralyzed, this is one of the main sources of income for supplying central Eurasia. While in the port of Saint Petersburg and other Russian ports, there is a decrease in operations due to the fact that leading companies in container transport and logistics have canceled their service to Russia. While the Mediterronean Shipping Company (MSC) has imposed harsh conditions but continues to load, which limits the load to approximately 45%. On the other hand, the shipping service to Russia could become even more expensive. Same with air traffic.
Given the serious situation, the banana cluster addressed a communication to the President of the Republic, Guillermo Lasso, indicating that “Great social damages are expected for the country in the coming weeks if we do not act together to avoid it. 50,000 hectares that produce bananas for Ukraine and Russia, in addition 50,000 workers depend on the correct and timely decisions of the government to prevent an incalculable social crisis,” the statement said.
Although Ecuadorian bananas are the most affected product, the export of flowers and shrimp are also affected.