Cost of sea freight affecting rice shipments

The high cost of sea freight and the lack of containers have harmed Brazilian rice exports. A new survey by ABIARROZ (the Brazilian rice industry association) points out that in August alone, the price of maritime transport increased by an average of 217% compared to May, with peaks of up to 450%.

According to the organization, this scenario resulted in losses for the sector that totaled R$36.4 million in the first half of 2021. Sales to the United States alone fell 70% in July compared to the same month last year. Also according to the association, all rice-exporting companies had reduced shipments and lost foreign sales in August.

In the first study carried out by Abiarroz, between May and June, the main destinations affected were Peru and the USA. In the survey update, in August, in addition to Peru and the USA, Brazilian sales to Mexico, Chile, Canada, and African countries also dropped.

In a statement, the export manager at Abiarroz, Carolina Telles Matos, said that “the current scenario affects business abroad and promotion actions in markets that import value-added rice, such as the USA, Peru, Mexico, and Central America”.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/agronegocios/noticia/2021/08/20/custo-do-frete-maritimo-afetou-embarques-de-arroz-diz-abiarroz.ghtml

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