Brazil’s coffee traders hounded by lack of vessel containers, space

Brazil's trade surplus of $6.16 billion in September, 38 percent more than last year, due to its weak currency has led to fewer containers and vessel space that could ship coffee cargoes out of its ports.

The pandemic has caused a 40 percent drop in the country's currency, the real, leading to a deluge of exports of much cheaper Brazilian goods and a sharp decrease in imports.

The weak currency allows Brazilian farmers to receive more reals in dollar-denominated trade, prompting them to rush in selling their crops, boosting exports.

The result was an imbalance of nearly 80,000 boxes in Brazil in August, with around 251,000 containers leaving the country and only 172,000 arriving.

By contrast, in January, 216,000 boxes arrived and 201,000 left.

Consequently, it is not currently feasible to export Brazilian coffee promptly, which can only be done at a higher cost.

Shipping companies such as Maersk and MSC are fully-booked in Brazil, with no more room for shipments in October.

Maersk said it was working to improve container availability.

Julian Thomas, general manager for Maersk East Coast South America, said that with the coffee sector is entering into the peak season, it is highly-important for producers to have the vision when to move stocks in advance.

With cargoes from Brazil taking longer to arrive, global coffee merchants may need to source supplies from other countries.