Abiarroz: High freight prices hinder Brazilian rice exports

The high cost of ocean freight and the lack of containers continue to hamper Brazilian rice exports. In August alone, the price of maritime transport had an average increase of 217%, reaching up to 450%, compared to May, according to a new survey by the Brazilian Association of the Rice Industry (Abiarroz). This scenario resulted in a loss for the sector of R$ 36.4 million in the first half of 2021. In addition, it caused foreign sales of the cereal to the US to drop more than 70% in July, compared to the same month in 2020. Also according to the survey carried out by the association, 100% of rice exporting companies had reduced shipments and 100% lost foreign sales in August, as a result of the high cost of sea freight and the lack of containers. The survey also points out that there was an increase in the markets most affected by the reduction in exports resulting from the rise in freight prices. In the first study carried out by Abiarroz, between May and June, the main ...