High freight costs and container shortage affecting agro exports

The lack of containers and the high cost of freight is causing Brazil to struggle to export several agribusiness products.

Because of the pandemic, shipping companies changed routes and canceled ship calls. The uneven economic recovery around the world is also interfering with container movement and the price of ocean freight.

A recent survey carried out with 128 companies shows that transport prices have risen 500%, from US$ 2,000 to US$ 10,000 per container, depending on the route.

It is a global problem. Ships are being held in quarantine to prevent transmission from Covid-19. Others are waiting for their turn to dock at ports, mainly in Asia.

The executive director of Agências de Navegação do Estado de São Paulo (the shipping agencies of the state of São Paulo) explained that the cargo handling has significantly increased on routes between Asia, the United States, and Europe, and this helps to explain the imbalance in the supply of containers in Brazil.

Source: Valor Econômico

To read the full original article, visit the link:

https://g1.globo.com/economia/agronegocios/globo-rural/noticia/2021/09/05/agro-sofre-com-custo-do-frete-e-baixa-oferta-de-conteineres-para- export.ghtml

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