Logistics Experts Advise Longer Lead Times
Exporters are being advised to build in longer lead times and diversify logistics partners due to ongoing global freight challenges. A logistics manager on the "CargoCast" podcast warned of persistent port congestion in Southeast Asia and the continued impact of Red Sea security issues on shipping routes to Europe. Building direct relationships with regional freight forwarders is recommended to secure vessel space.
- Rival exporter Vietnam plans to reduce its total rice exports to approximately 7 million tonnes in 2026, down from 8 million the previous year, to strategically focus on higher-quality grains and command better prices in premium markets. - India, the world's largest rice exporter, recently banned exports of non-basmati white rice to control domestic prices, a move that will roughly halve its total shipments and could create significant shifts in global supply and pricing. The ban does not apply to parboiled or basmati rice varieties. - The Thai Baht is trading 10-20% stronger than the currencies of competing rice-exporting nations, presenting a major challenge to price competitiveness. Forecasts for the Baht-to-Euro exchange rate through 2026 suggest continued volatility, with some analysts predicting a slight weakening later in the year. - Thailand's 2026 rice export target is projected to fall to 7 million tonnes from an estimated 8 million in 2025 due to intense price competition and the strong currency. However, exports of premium Thai Hom Mali rice have shown resilience, with shipments increasing by 11% year-on-year, reinforcing the value of a premium brand strategy. - Exporters targeting the European Union must comply with the new Organic Regulation (EU 2018/848), which requires imports to meet the same strict standards as EU-produced goods, ending the previous system of equivalency. All organic shipments require an electronic Certificate of Inspection (e-COI) filed in the EU's TRACES system to clear customs. - To meet growing demand for sustainable sourcing
