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FX.co ★ Coffee importers bear brunt of pandemic

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Forex Humor:::2021-09-09T07:27:20

Coffee importers bear brunt of pandemic

Many countries have imposed restrictions due to the spread of new coronavirus strains. Experts are concerned that it may inevitably hurt supply chains. For instance, global supplies of coffee are being put under strain by a lockdown in Vietnam because of a rising number of coronavirus cases. Notably, this country is the world's second-largest exporter of coffee.

According to Bloomberg, coffee exports from Vietnam have been seriously affected due to tough restrictions imposed against the coronavirus spread, especially its more contagious Delta variant. Vietnam's main export hub, Ho Chi Minh City, is under travel restriction. Thus, it is unclear when shipments of robusta beans, the type most commonly used to make instant coffee, will resume. The transportation of coffee in a number of important production areas of the Central Highlands is also under strict control.

The latest restrictions have intensified existing problems with a shortage of shipping containers and higher shipping costs that also led to logistics problems.

The Vietnam Coffee-Cocoa Association and other trade companies called for the government to relax restrictions. They pointed at supply difficulties which caused an astronomical rise in the coffee price. The Vietnamese government responded to the concerns. It ordered regional authorities to ease unnecessary burdens on the transport of goods, including coffee, and other farm products in the southern part of the country.

Transport Minister Nguyen Van The also stressed that officials should not delay shipments with excessive scrutiny of documents from suppliers and exporters of important products.


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