Brazilian soyabean exports to China are gradually stabilising following severe disruption in late 2025 driven by intensified phytosanitary enforcement by Chinese customs authorities, according to a report by marine insurers Gard.
However, with production and export volumes forecast to set further records in the 2025/26 season, carriers should expect continued regulatory scrutiny and sustained claims exposure, the 22 April report said.
Accounting for around 60% of global trade and representing the country’s most valuable export commodity, Brazil remains the world’s largest soyabean supplier, according to the report.
The Brazil-China corridor continued to dominate seaborne flows, with China firmly established as the South American country’s leading buyer, the report said.
In 2025, Brazil exported a record 108M tonnes of soyabeans, of which approximately 85M tonnes (68%) were shipped to China, Gard wrote.
Brazilian soyabean production and export volumes were expected to rise further in the 2025/26 marketing year to around 180M tonnes and 114M tonnes respectively, according to US Department of Agriculture (USDA) projections.
At the end of 2025, China’s General Administration of Customs (GACC) had intensified phytosanitary scrutiny of Brazilian shipments, citing findings of foreign matter including chemical residues, weed seeds and live insects, the report said.
This led to the temporary suspension of export licences at several Brazilian facilities, causing congestion and delays at peak season, with vessels stalled and weekly exports falling sharply in early 2026.
In response, Brazil’s Ministry of Agriculture (MAPA) introduced a revised inspection framework in March 2026, strengthening sampling and certification procedures.
Following bilateral discussions, Chinese authorities agreed to relax the strict zero‑tolerance policy for weed seeds in soyabeans for domestic industrial processing, allowing shipments previously held back to be released under a more risk‑based approach.
While these developments had helped stabilise trade flows, the regulatory environment remained subject to close oversight, the report said.
“Although phytosanitary compliance rests primarily with shippers/cargo interests, delays may compound more typical transit delays,” Gard wrote.
“These delays, in combination with parts of the cargo having a high moisture content and temperature at loading, increases the risk of mould, caking and discolouration at discharge.”
To meet Chinese criteria, Gard advised its members to: ensure cargo spaces were properly cleaned and free of residues from previous cargoes; actively monitor loading operations and suspend loading immediately if contaminants or discoloured, obviously moist or heated soyabeans were observed; and consider appointing experienced surveyors to document cargo conditions, including temperature at loading.
Although inspection regimes had become more structured and enforcement had become more visible, these developments did not necessarily indicate an increase in claims exposure, the report said.
However, Gard said it continued to see large claims, notably in China, for heat damage, so it was important to continue taking precautions.
“Experience suggests that well managed vessels with proper documentation and monitoring are in a strong position to defend claims should disputes arise,” Gard added.
