Thailand: Freight rates skyrocketed, rice exports fell deeply

The following article belongs to baoquocte.vn.

Baoquocte.vn. Thai rice exporters are increasingly concerned that the country’s Hom Mali rice exports will continue to decline because of expensive freight rates.

Freight rates skyrocketed, Thailand’s Hom Mali rice exports fell deeply. (Source: Aseanrecords)

Freight rates skyrocketed, Thailand’s Hom Mali rice exports fell deeply. (Source: Aseanrecords)President of the Thai Rice Exporters Association (TREA) Charoen Laothammatas said shipments were still stalled due to labor shortages as well as logistical and transport problems after the government imposed blockade measures. to prevent the spread of the Covid-19 pandemic.
Mr. Charoen commented that freight rates are still high, especially shipping prices on routes to New York and Los Angeles have increased to $18,500 and $15,000 per container, respectively, from just 3,000-4,000. USD/container in the period before the outbreak of Covid-19.
Meanwhile, the export price of Hom Mali rice was reported at $700/ton, down from $800-900/ton earlier this year.
Mr. Charoen said Thailand’s overall rice production, including Hom Mali rice, is expected to return to normal this year after falling about 20% in the past two years due to widespread drought.
Thailand’s Hom Mali rice production is expected at 9 million tons, or about 5 million tons of rice. Half of this volume is for domestic consumption, the rest is for export.
Mr. Charoen said the TREA is concerned that Hom Mali rice exports may fall during the New Year’s harvest season because of logistical problems and higher freight rates as well as higher yields. This will affect the domestic price of Hom Mali rice.
The domestic price of new Hom Mali rice was recorded to decrease from 14,500 Baht ($444.79) per tonne in January 2020 to 11,500 Baht ($352.76) per tonne in December last year.
The current price is 8,600-11,500 Baht/ton.
Last year, Thailand exported 1.33 million tons of Hom Mali rice with a value of 42.5 billion Baht, corresponding to a decrease of 4.72% in volume and 6.7% in value compared to the same period last year. .
During January-July 2021, Thailand’s Hom Mali rice exports fell 26.7% to 661,750 tons, with a value down 37.8% year-on-year to $581 million.
The US is Thailand’s largest market for importing Hom Mali rice, reaching 224,181 tons, down 27.5% from last year, followed by Hong Kong (China), mainland China, Singapore, Canada, France and Hong Kong. Australia.

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