‘Containergeddon’ takes refined sugar and rice back to bulk carriers

Food traders are shifting from containers to bulk carriers for transporting refined sugar and rice, hoping to avoid delays in shipments caused by the container shortages and port congestion which the industry is calling “Containergeddon,” according to traders.

Container transport has been hit by costs and delays amid growing demand for shipments, while container terminals at ports are finding it difficult to handle the flow.

In the past, commodities such as refined sugar, coffee, rice, cotton, and cocoa moved from the holds of ships to containers since the large boxes were more practical and offered good quality control. But now, shippers are returning to their previous strategy, at least temporarily.

“Around 80% of refined sugar trade was done in containers before the pandemic. Now it has dropped to around 60%”, said Paulo Roberto de Souza, CEO of Alvean Sugar SL, the largest sugar trading company in the world.

According to Souza, the change is only not more marked because there are not many small ships available on the market.

Data from the maritime agency Williams on port handling in Brazil, the world’s largest sugar exporter, show that the volume of refined sugar transported in containers fell 48% in June and July (last available data) compared to the previous year.

Coffee exporters are still not considering the switch, mainly due to quality concerns. They say that the containers better preserve the coffee’s characteristics, such as aroma and flavor.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/containergeddon-leva-acucar-refinado-e-arroz-de-volta-a-navios-graneleiros/

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