Cost of shipping rice rose 170% in pandemic

The Covid-19 pandemic has strongly affected freight prices. In the rice chain, the increase in freight was, on average, more than 170%, with peaks of up to 300% in some cases, according to a survey carried out by the Brazilian Rice Project, an initiative developed by ABIARROZ (the Brazilian rice industry association) in partnership with Apex-Brasil.

The study is the result of a consultation by the Brazilian Rice team with a group of rice-exporting companies associated with ABIARROZ. The companies interviewed all export from the Port of Rio Grande (RS).

The chart below was compiled using DataLiner data and shows Brazilian rice handling since 2019:

According to the survey, during the pandemic, maritime cargo transport operations deteriorated by 50%. This caused 33% of companies in the rice sector to reduce exports. Another 50% maintained the volume of shipments and 17% increased. “There is a lack of space on the ships to ship rice,” said, in a statement, Gustavo Trevisan, director of international relations at ABIARROZ.

The sector is also facing a shortage of containers to transport the product, says Trevisan. The survey also shows an increase in the waiting time for the cereal to reach its destination and the lack of cargo for shipment.

Source: Valor Econômico

To read the full original article, access the link below:

https://valor.globo.com/agronegocios/noticia/2021/06/22/argentina-retoma-embarques-de-carne-bovina-com-cotas-a-frigorificos.ghtml

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