Payments clear for delayed wheat cargoes at Egyptian ports

Several shipments of wheat that had been delayed for weeks at Egyptian ports due to payment issues have now been cleared to unload after the problems were resolved, Egypt’s state grain-buyer Mostakbal Misr told on Thursday.

Around eight vessels carrying roughly 200,000 metric tons of wheat had been stranded since early October due to delays in clearing the letters of credit, traders had said.

The holdup disrupted unloading at Egyptian terminals and added costs for ship owners.

“The payment problems for a number of wheat cargoes delayed in Egyptian ports have been swiftly settled,” Mostakbal Misr said. “As of Wednesday evening, the matter has been resolved and ships are already offloading gradually now.”

The agency noted that the payment issue stemmed from new regulations introduced by Egypt’s central bank, which tightened verification procedures for letters of credit and checks on the origin of imported goods.

“While Mostakbal Misr was not involved in the delay, we acted swiftly together with the central bank and the suppliers to ensure the matter is resolved quickly,” it said.

Egypt, one of the world’s largest wheat importers, relies heavily on wheat imports to supplement its local harvest of the grain that is used to produce subsidised bread for tens of millions of Egyptians every day.

Tags: Egypt, wheat, shipments, vessels, ports