Steaming Challenges: The Risky Voyage of Rice from Asia to Africa

8. December 2025

By: Stefan Seniow, Senior Underwriting Manager, HDI Global SE Branch for Belgium and Rémi Barral, Managing Director, JLB Expertises and Maurice Yong, Insurance Manager, Olam Agri. Stefan and Rémi are members of the IUMI Loss Prevention Committee.

Rice may appear a simple cargo, yet its journey from Asia to Africa reveals one of the most complex trades in global shipping. Behind every shipment lies a chain of climatic, operational and regulatory risks that touch not only commerce but also food security across an entire continent.

A Vital Trade

With more than 500 million metric tons produced globally each year—over half from China and India—rice remains the world’s most essential staple. Africa’s consumption, however, is rising faster than any other region and could reach 20 million tons by 2025. Domestic production covers only a fraction of this demand, leaving 12–14 million tons imported annually, mostly from Asia.

Worth around USD 10 billion per year, this trade is a lifeline. Delays or damage can cause price shocks and political strain. For the marine insurance industry, every cargo represents not just goods in transit but the stability of markets and communities.

The Risk Landscape

The Asia–Africa route carries a unique mix of exposures:

• Maritime risk: Older bulk carriers, long detours and piracy-prone waters extend voyage times and humidity exposure.
• Port and infrastructure limits: Congested terminals, limited covered storage and slow inland transport increase loss potential after discharge.
• Human and environmental factors: Rice is moisture-sensitive; loading in monsoon conditions or using poor packaging often leads to condensation and spoilage.
• Regulatory complexity: Differing local laws and insurance requirements demand close coordination and trusted on-the-ground partners.

Managing the Challenge

Losses are frequent but largely preventable. Stronger collaboration among traders, insurers and surveyors is essential. Practical measures include pre-shipment inspections, active monitoring during loading and discharge, better information sharing and voyage planning that accounts for seasonal conditions.

For underwriters, the focus is shifting from individual voyage coverage to the entire supply chain—from origin to final inland delivery. Risk managers and adjusters, meanwhile, stress that prevention must start long before the vessel sails.

More Than Cargo

For Africa, rice is more than an import—it is a foundation of food security. For the marine insurance sector, it demonstrates how “ordinary” commodities can carry extraordinary significance. Safeguarding this trade means protecting livelihoods, economic balance and the confidence that keeps a continent fed.