Exporters say the sudden spike in shipping costs and logistical uncertainties has made overseas trade unviable, forcing them to cancel orders despite steady international demand.

“For a 25-tonne consignment to London, shipment costs have jumped from Rs 1.60 lakh to Rs 4.50 lakh within a month, which is almost triple. Our buyers are still placing orders, but given the uncertainty, they prefer to pay only after delivery. That’s a risk we cannot afford, so many shipments have been cancelled,” said M Anandaraj of Susmi Exports in Pollachi.

The crisis is compounded by disruptions along key maritime routes. Shipments through the Suez Canal, which typically take around 18 days to reach London, are now delayed, while alternative routes stretch transit times to nearly a month. Similarly, consignments to Dubai that earlier took a week are now taking over 15 days due to rerouting amid tensions at the Strait of Hormuz.

As a result, exports to Gulf countries, including Saudi Arabia and Kuwait, have been completely halted. Shipments to major markets such as London, Germany, Mauritius, Japan, Kenya, Iran, Canada and Singapore have also stopped. “Even though enquiries continue from Dubai, exports have remained suspended for nearly two months,” Anandaraj added.

Back home, exporters are grappling with a severe labour shortage, as many workers were so far engaged in election-related activities. This has disrupted harvesting, de-husking, processing and packaging operations.

The inherently short shelf life of tender coconuts, about a week, further complicates exports. Maintaining quality requires rapid processing and cold storage, while delays in transit are taking a huge toll.