Ugandan coffee exporters face higher freight charges on top of delays

March 10, 2026 in Markets, Transport by Editor

During the season between late 2024 and late 2025, Uganda overtook Ethiopia as Africa’s top coffee exporter, shipping out 8.4 million bags worth $2.4 billion.

Shipping delays in the Red Sea due to the ongoing Iran war have forced an increasing number of vessels to reroute around the Cape of Good Hope, significantly increasing freight rates and transit times for Uganda’s bean consignments heading to Europe.

An estimated 12 pc to 15 pc of maritime trade and around 30 pc of global container traffic passes through the Suez Canal. The Suez Canal is also a key trade route for coffee shipments from Asia to the Mediterranean and southern Europe.

During the season between late 2024 and late 2025, Uganda overtook Ethiopia as Africa’s top coffee exporter, shipping out 8.4 million bags worth $2.4 billion. In January total earnings from coffee reached just over $160 million.

Meanwhile, according to industry analysts Sucafina, futures prices on the coffee markets have started to rise again especially for the Arabica variety. The week ending Friday March 6, saw the contract for May delivery in New York and London at 293.30 cents and $3,772, up 4.5% and 4.1% respectively on the previous Friday. On Monday, Barchart reported that New York Arabica coffee prices posted a new 3-week high. In London, Robusta futures prices were down by 1.54 pc on Tuesday to $3713 a tonne.

Soaring coffee exports from Vietnam, the world’s largest Robusta producer, are bearish for Robusta prices. Vietnam’s National Statistics Office reported on March 6 that its January to February 2026 coffee exports rose by 14 pc year-on-year to 366,000 metric tonne.

The war in Iran has halted shipping through the Strait of Hormuz. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters.