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Thailand posted rice exports of 5.1 million tons through November 2020, down 28 percent from the same period a year earlier, and to its lowest volume in two decades in 2020 due to a global shortage of shipping containers.
Another factor that brought down rice exports was the strong baht, which gained 11 percent against the US dollar since April, making shipments uncompetitive against rivals India and Vietnam.
According to Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, 2021 is not looking any better than last year with the container shortage problem posing as another obstacle to their continuous export struggle.
Shipping container turnaround times have lengthened globally due to Covid-19-related handling capacity cuts in Europe and the US, resulting in fewer containers returning to Asia.
Half of Thailand's rice exports rely on containers, including the premium-grade jasmine rice, last year's bright spot that has retained demand in wealthier markets such as the US and Canada.
Thailand exported 1.29 million tons of jasmine rice through November 2020, up 1.57 percent from the same period the previous year.
Ghanyapad Tantipipatpong, chairwoman of the Thai National Shippers' Council, said that the container shortage may last for six months, as China and Vietnam also vying secure containers
Thailand usually uses 10 million containers for its exports per year but will need an additional 1.5 million empty containers this year.
