Risky Business - Greenpeace

Economic and regulatory impacts
from the unintended release of genetically
engineered rice varieties into the rice
merchandising system of the US
5.5 Exporter Impacts
Export companies that deliver rice freight on board incur a
charge for export. After the LL601 announcement US rice
exports to many destinations dropped precipitously. Table
5.3.2 shows that the US rice exports dropped 663,000 metric
tonnes. The export companies who deliver rice incur a loss in
shipping US rice. Since August 2006 when the LL601 event
was announced, ocean shipping rates from the US Gulf
Coast to Rotterdam and Hamburg ranged from $25 -
$50/tonne. The US Gulf - Japan ocean freight rates ranged
from $40 to $80/tonne. From August 2006 to July 2007 the
ocean freight rates increased. Taking the midpoints of the
ocean shipping rates, the estimated shipper loss was
$25.427 million (Table 5.5.1).
Table 5.5.1 Loss in Export Shipping Revenue
Decline in Exports
from 2005/06
Lost Export
to 2006/07 Freight Rate Shipping
Export Destination (000 metric tonnes) $/metric tonne Revenue, $
Europe and FSU 336 38* 12,615,000
Northeast Asia 17 60* 1,032,000
Other Asia, Oceania, & Middle East 205 38 7,778,600
Africa 34 38 1,292,000
Western Hemisphere 71 38 2,709,400
TOTAL 663 25,427,000
Source: Rice Briefs, USDA ERS. Ocean freight rates: Home-Grown Cereals Authority, Volume 10, Issue 4 60
24