Vietnamese importer replaces Black Sea wheat with more expensive US grain after supply disruptions
Vietnamese wheat importer Golden Wheat replaced disrupted Black Sea cargoes with Bulgarian and more expensive US wheat as shipping risks intensified. Higher insurance and logistics costs are adding to import expenses, while tighter alternative supplies could keep wheat prices elevated until March.
Vietnamese company Golden Wheat was forced to replace part of its contracted Black Sea wheat with more expensive US grain due to supply disruptions. The company had previously booked four wheat cargoes from the Black Sea region, equivalent to about one-fifth of its annual needs.
After disruptions intensified in the Black Sea, the company was informed that part of the contracted volume would not be shipped. Two cargoes were replaced with Bulgarian wheat loaded at the port of Burgas.
Golden Wheat replaced another two missing or delayed cargoes with US wheat, which came at a significantly higher cost. Higher insurance and logistics risks for vessels transiting the Black Sea and Red Sea are also adding to expenses.
Black Sea supply problems are forcing other importers to look for alternatives. Turkey and the UAE are showing greater interest in the Baltic region, Bangladesh is turning to Romania, Argentina and India, while some buyers are even approaching Australia.
However, alternative supply options remain limited due to weaker crops in the US and Europe. Golden Wheat expects wheat prices to remain elevated at least until March, increasing the risk of higher flour and other food prices.
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Source : UkrAgroConsult
