Thai rice exports to stay low in 2021 on global shipping container crunch

[webfact]

Thai rice exports to stay low in 2021 on global shipping container crunch

By Patpicha Tanakasempipat

 

FILE PHOTO: A worker cultivates rice plants at Sompot Tubcharoen's farm in Bangkok, Thailand August 28, 2018. Picture taken August 28, 2018. REUTERS/Soe Zeya Tun/File Photo

 

BANGKOK (Reuters) - Thailand's rice exports are headed for another gloomy year after sinking to the lowest volume in two decades in 2020, exporters said, as a global shortage of shipping containers reduce the prospects of increasing shipments.

 

The cargo crunch is the latest woe facing the world's second-largest rice exporter. According to data from the Commerce Ministry on Dec. 2, rice exports were 5.1 million tonnes through November 2020, down 28% from the same period a year earlier, on track for the lowest year since 2000.

 

Thailand's rice exports are down because the strong baht, which has gained 11% against the U.S. dollar since April, has made shipments uncompetitive versus rivals Vietnam and India.

 

Official export forecasts have not been released yet, but two Bangkok-based rice exporters said they are expecting more pain in 2021.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, agreed with that outlook.

 

"This year is not looking any better. It's still just as gloomy," he told Reuters. "The container shortage problem is another obstacle to our continuous export struggle."

 

Globally, shipping container turnaround times have lengthened because of COVID-19-related handling capacity cuts in Europe and the United States, with freight rates sky-rocketing and fewer containers returning to Asia. This has created shortages in Asian ports of the ubiquitous boxes.

 

Chookiat said about half of Thailand's rice exports rely on containers, including the premium-grade jasmine rice that was last year's bright spot and has so far retained demand in wealthier markets such as the United States and Canada.

 

"There's still good demand for our jasmine rice, but we can't export much of it since November because of the container shortage," said Chookiat.

 

Thailand exported 1.29 million tonnes of jasmine rice through November 2020, up 1.57% from the same period a year earlier, the Commerce Ministry said.

 

Thailand's container shortage was expected to last for six months, as China and Vietnam also vie to secure containers, said Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers' Council.

 

"In the short term, we just don't have containers because they don't return," she told Reuters.

 

Thailand exports about 10 million containers' worth of goods per year and will need to additionally import about 1.5 million empty containers this year, Ghanyapad said.

 

(Reporting by Patpicha Tanakasempipat; Editing by Christian Schmollinger)

 

-- © Copyright Reuters 2021-01-05

 

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[worgeordie]

Rice exports low, more to do with strength of the THB,

than shortage of containers I suspect,difficult to get

a market back once you have lost it.

regards worgeordie

[metisdead]

They keep glossing over this fact in the OP:

• Thailand's rice exports are down because the strong baht, which has gained 11% against the U.S. dollar since April, has made shipments uncompetitive versus rivals Vietnam and India.

 

 

[ozz1]

they have to blame something other than the thai baht anything will do 

[Tropicalevo]

4 hours ago, ozz1 said:

they have to blame something other than the thai baht anything will do 

Thailand. Hub of the blame game?

[Chelseafan]

13 hours ago, worgeordie said:

Rice exports low, more to do with strength of the THB,

than shortage of containers I suspect,difficult to get

a market back once you have lost it.

regards worgeordie

 

 

The container shortage is a real pain, I source a lot from Thailand and we are seeing orders shipping 4-6 weeks later than scheduled not to mention that the price of a 40ft reefer has jumped from around $2500 to $8000.

 

[Chelseafan]

13 hours ago, metisdead said:

They keep glossing over this fact in the OP:

• Thailand's rice exports are down because the strong baht, which has gained 11% against the U.S. dollar since April, has made shipments uncompetitive versus rivals Vietnam and India.

 

 

 

It's a little to do with the baht but not much. Most retailers are in long-term contracts so a swing of 11% shouldn't affect them for the short-term but as per my previous post, lack of containers is causing a huge problem not just with rice but shrimp and chicken.

 

Oh and we've just heard the country is on a national lockdown!!

 

[Cake Monster]

What Countries are going to buy Thai Rice when its about 25% more expensive than other producers are selling it for

[bloodyholly]

It’s not my fault gov’ner....... there’s no containers????

[fondue zoo]

Container shortages are not a problem limited to Thailand. On average container turnabout time has jumped from an average of 60 days to 100 days.

 

..and of course the magical baht

[metisdead]

An off topic post about the toxic air pollution has been removed. 

[DLock]

37 minutes ago, fondue zoo said:

Container shortages are not a problem limited to Thailand. On average container turnabout time has jumped from an average of 60 days to 100 days.

 

..and of course the magical baht

 

That was my thinking...if it's a "global shortage" then all countries have the same problem...therefore a level playing field. Non issue.

 

...I think the baht and the competitiveness of the other countries is more likely.

 

Fail.