EAGC participated in the International Grains Conference which took place on the 7th to 8th June, 2022 in London, UK. EAGC was represented by the Executive Director – Mr. Gerald Masila who was one of the speakers at the rice workshop that took place on the second day 2 of the conference.
The session discussed the logistical difficulties facing the international rice sector, highlighting ways in which traders adapted to disruption in the container market, as well as future prospects.
Mr. Masila spoke about the opportunities and challenges in the Eastern Africa rice value chain and the perspectives on logistical disruption to trade amid turbulence in container freight markets.
Global rice trade reached a record high in 2021 (Jan/Dec) on a significant increase in demand from African and Asian buyers. However, exporters and importers faced substantial logistical challenges in completing orders due to disruption in shipping markets, with a widespread shortage of containers underpinning a surge in freight rates.
Unlike other bulk-agricultural commodities, a significant portion of rice is shipped in containers in small volumes, notably high-valued specialty grades, such as fragrant and basmati rice. Reports indicated that container shipping lines were reluctant to prioritize carrying rice and instead focused on commercial goods whose demand was robust.
Consequently, buyers switched to shipping volumes on a bulk vessel, either alone or in unison with other importers, although this created other issues relating to warehouse space.
