Poultry shipping delays from Brazil to UAE nearly double transit times

Brazilian market participants said over the past week that transit times for poultry exports from Brazil and Argentina to the UAE have increased, exceeding 80 days in some cases, reflecting longer shipping schedules and delays with previously shipped cargo.

According to a Brazil-based trader, transit times for new shipments of chicken products from Brazil to the UAE, via ports such as Khor Fakkan, are currently around 85 days, well above the historical average of about 45 days.

"Transit time from Argentina to the UAE is 100 days for new shipments," the source said. "It is very long."

The trader attributed the increase to a buildup of cargo shipped months earlier, when Brazilian export volumes to the region surged.

"There has not yet been an increase in freight costs, but I believe that may happen," the trader said.

Platts assessed chicken breast CIF Middle East at $2,940/mt on May 29, unchanged day over day. Chicken shawarma CIF Middle East was also assessed unchanged at $2,870/mt.

A Brazilian exporter highlighted that, following the opening of ports such as Khor Fakkan, Fujairah, and Sohar to receive Brazilian chicken cargoes, volume offered and shipments increased. However, the accumulation of cargoes arriving simultaneously at these destinations was not anticipated.

According to the source, shipments are now arriving at very close intervals, which could create bottlenecks if ports or inland logistics cannot efficiently absorb the flow.

"Cargo shipped more than 45 days ago has still not been received by the importer," the source said, adding that it remains unclear whether the delays are related to customs issues or inland transportation.

Despite these logistical challenges, shipment volumes have not declined, supported by attractive export prices to the UAE. Still, flows could be impacted if delays persist.

Platts is part of S&P Global Energy.