Lack of containers doubles cost of exporting cotton to Asia

The container crisis has hurt the cotton sector leading to a considerable delay in exports. According to the president of the Brazilian Association of Cotton Producers (Abrapa), Júlio Cézar Busato, for now, the sector has no way of quantifying the losses because this is still the second month of the new export cycle.

“Today we are more concerned with the cost of freight. The impact for us is much greater than for the North Americans”, says the Executive.

The president of the National Association of Cotton Exporters (Anea), Miguel Faus, explains that export costs are already increasing for some destinations. “There are cases of shipments to Asia where costs have doubled,” he says.

According to Faus, rescheduling shipments has taken from one week to ten days.

See the chart below for a history of Brazilian cotton exports since January 2018. Data are from DataLiner:

Brazilian Cotton Exports (HS 5201) | Jan 2018 to Aug 2021 | WTMT

He explains that this year, the harvest was smaller than last year when 2.4 million tons were exported. This year, the forecast is to ship around 1,750,000 tons.

“The problem has become accentuated with the smaller harvest. We normally export up to 200,000 tons per month. In a normal situation, we would be able to reach this number, but without the ships, we cannot export,” he says.

Source: UOL

To read the full original article, visit the link:

https://economia.uol.com.br/reportagens-especiais/falta-de-conteineres-aumenta-custos/#end-card

Sharing is caring!