Business

High sea freight costs continue harming Brazilian exports

A double whammy of the pandemic and the Suez Canal blockage means freight rates have soared, with few alternative means of transport for Brazilian exporters

exports freight prices
Port of Navegantes, in Santa Catarina. Photo: Alexandre Rocha/Shutterstock

The Covid-19 pandemic has been harming the logistics sector, taking sea freight rates to all-time highs. It is increasingly difficult to find containers to transport goods, causing losses to importers and exporters worldwide. The Suez Canal blockage in March further aggravated the situation and is increasingly affecting trade. In Brazil, the agribusiness sector has been the worst hit. Rice exports, for example, fell 41 percent in the first semester of this year.

According to the Brazilian Association of Rice Industry (Abiarroz) — which uses data from the Economy Ministry — the country exported 475,962 tons of rice from January to...

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