Container crisis affects global food trade

Published 2021년 2월 3일

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Thailand, Canada, and India are experiencing difficulties in exporting their goods due to a surge in demand for shipping containers, which has led to a shortage. This shortage has made it more profitable to return empty containers to China than to refill them, leading to food supply issues in Asian markets and potential price increases for consumers. The high cost of transporting goods from China to the US compared to the opposite journey has exacerbated the problem, with empty containers making up three out of four returns at the port of Los Angeles. The situation is affecting various commodities, including rice, peas, lentils, sugar, and coffee, with some buyers delaying or halting purchases altogether.
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Original content

Food accumulates in the wrong places, as ships have been transporting empty containers. By Bloomberg With global competition for shipping containers, Thailand cannot ship rice, Canada accumulates peas and India cannot export its mountain of sugar. Transporting empty boxes back to China has become so profitable that even some U.S. soy carriers have to contend for containers to supply hungry Asian buyers. "People are not getting products where they need them," said Steve Kranig, director of logistics for IM-EX Global, a carrier that ships cargo such as rice, bananas and so-called dumplings from Asia to the United States. “One of my customers sends 8 to 10 containers of rice every week from Thailand to Los Angeles. But you can only ship 2 to 3 containers a week now. ” The central problem is that China, which recovered faster from the Covid-19 pandemic, has accelerated its export-focused economy and is paying huge premiums for containers, which makes it much more profitable to send ...
Source: Canaonline

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