Since late 2025, global shipping costs have surged dramatically, causing widespread disruption to import and export trade across Latin America. Freight rates for shipping a 40-foot container from Asia to Latin America have doubled from approximately US$2,213 in 2025 to about US$4,530 as of early July 2026. Some routes have seen even more staggering increases – quotes for a 40-foot container from India’s Jawaharlal Nehru Port to Brazil’s Santos Port have reached approximately US$9,000. Vessel load factors on Asia-Latin America routes are approaching 98%, with severe capacity tightness, frequent space shortages, and cargo rollovers.
The sharp rise in shipping costs is reshaping agricultural export patterns across the region, with Peru’s avocado industry bearing the brunt. As the world’s largest avocado exporter, Peru supplies 85% to 90% of Europe’s avocado market. From January to May 2026, Peruvian avocado exports reached US$795.7 million, with shipment volumes of 406.5 million kilograms. However, the freight surge is eroding exporters’ profit margins. Peruvian agricultural exporters are facing severe logistical challenges – tight container space, sharply rising spot rates, and increased delay risks, all of which could affect product quality and profitability.
Meanwhile, avocado prices in the European market continue to face downward pressure. In week 22 of 2026, the European reference price for Hass avocados size 18 stood at €8.89 per 4kg package, down 21% from the same period last year. Heavy arrivals of Peruvian avocados, coupled with smaller supplies from Mexico and South Africa, have kept prices under pressure throughout June. Industry observers expect July to be a turning point for market dynamics.
Peru’s avocado sector is actively responding to this dual challenge. On one hand, exporters are seeking market diversification. In 2026, Peru plans to increase Hass avocado exports to South Korea by approximately 14%, positioning South Korea as a priority Asian market. However, freight, fertilizer, and fuel costs on the Peru-Asia route remain high, meaning that even with higher export volumes, euro-denominated export prices may stay elevated.
On the other hand, the industry is accelerating product processing upgrades. From January to April 2026, Peruvian frozen avocado exports grew 14% in volume and 32% in value, with per-pound prices commanding a US$0.34 premium over fresh avocado exports. This trend indicates that Peru’s avocado industry is shifting from purely fresh fruit exports toward higher-value processed products.
A DHL report notes that the Latin American freight market is grappling with demand growing faster than logistics capacity expansion, entering a peak-season-like high-pressure environment earlier than usual. In May, Latin American airfreight volumes rose 20% year-on-year, with average rates increasing 27%. Major shipping lines such as Maersk have already announced peak season surcharges of US$1,000 per container on Far East-Latin America routes.
The travails of Peruvian avocados are but a microcosm of the challenges facing agricultural exporters across Latin America. From Chilean cherries to Ecuadorian bananas, perishable agricultural exports across the region are under the twin pressures of rising transport costs and capacity constraints. Analysts point out that with shipping costs unlikely to retreat in the near term, Latin American exporters must accelerate supply chain optimization, market diversification, and product upgrading to maintain competitiveness in global markets.