By ANIRBAN RAY
Muscat – Escalating geopolitical tensions have disrupted global supply chains, sending vessel operating costs, bunker fuel prices and insurance premiums higher and pushing shipping costs to Oman up three- to five-fold since March.
The surge is putting pressure on fresh produce importers and, increasingly, household budgets as higher transport costs feed into the prices of fruits and vegetables.
Abdul Vahid, a leading fruit and vegetable importer and distributor in Oman, said freight costs on several key trade routes had risen sharply.
“China, which previously supplied Oman with essential staples like garlic and ginger at a freight rate of US$3,800 per container, now costs up to US$15,000. We are seeing similar spikes across other key trade corridors,” he said.
Freight from Europe has increased from about US$4,000 to US$10,000 per container, while rates from India, a major source of onions, chillies and bananas, have climbed from US$1,800 to US$8,400, Vahid informed.
The disruption is also lengthening transit times. Produce shipments from Africa, which previously took about 28 days, are now being rerouted via India, extending journeys to more than 40 days and increasing the risk of cargo deterioration.
Vahid said some vessel owners had reduced the number of ships in operation as the industry grappled with higher costs and uncertainty over maritime routes. Further increases could follow as the market adjusts to the disruption, he added.
For consumers, the impact is already being felt during weekly grocery shopping.
“Vegetables and fruits are things we buy every week, so even a small increase becomes noticeable in the monthly budget. Our weekly grocery budget for three members was RO30 and now it has gone up to RO50,” said Mohammad Riyaz, an Indian resident.
Another Indian expat Samuel Jacob said greater domestic production could help reduce exposure to international supply disruptions.
“We cannot control international shipping or the situation in the region, but we can reduce our dependence on imports. More support should go towards local farmers and growing vegetables and fruits inside the country,” he said.
Amerat resident Hamad Al Balushi said the price increases highlighted the importance of food security.
“When the price of vegetables and fruits increases, families have very little choice because these are basic items. This should encourage us to think seriously about how much of what we consume can be produced in Oman,” he said.
He added that greater local production could provide a buffer when global supply chains are disrupted. He said, “Local production may not replace imports completely, but it can give us more security when international supply chains are disrupted.”
Shopkeepers are also noticing changes in buying patterns. “Customers are becoming much more careful about what they buy. Some compare prices between different varieties and reduce quantities when prices rise,” said a shopkeeper in Ruwi.
He said expanding domestic production could provide an alternative when imported produce becomes more expensive or shipments are delayed.
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