Back to the complete issue
Wednesday, 20 October 2021

GASC is angling for more competitive pricing on grain shipping

GASC may suspend NNC’s price advantage on grain shipments: State grain buyer GASC is set to suspend the 15% price advantage currently extended to national shipping line National Navigation Company (NNC) on delivering wheat imports to Egypt, Reuters reports, citing traders in Egypt and Europe. GASC runs shipping tenders parallel with its frequent tenders for wheat imports, but bids have been few and far between as a result of the

advantage given to NNC. One trader told the newswire that “it looks like a move to reduce shipping costs of wheat imports by increasing competition.” GASC has not made any official statement on the move.

The supply crisis has pushed shipping costs sky-high: Maersk, which accounts for around 20% of global shipping and is a general indicator for the state of the industry, told the Financial Times earlier this month that it expects to deliver record bottomline results amid the spike in freight rates, with a return to normality not expected till 2022 at the earliest.

It’s not just shipping — wheat is pricier, too. GASC last week called off a wheat tender as prices offered were higher than expected, marking the fourth time it has canceled a tender in recent months. Average wheat prices have jumped by as much as USD 100 per tonne since the season began amid the squeeze on global commodities, posing a challenge for Egypt as the world’s largest wheat importer.

IN OTHER COMMODITIES NEWS- Egyptian onion exporters stand to benefit from the surge of local prices for the produce in India, which is prompting Indian suppliers to look outside to ensure the popular commodity remains accessible to the population, reports Reuters, quoting Ajit Shah, the president of India’s Onion Exporters’ Association.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.