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FCC reports that global container shipping capacity has been reduced by detours around Africa due to Red Sea unrest, requiring more ships for the same tonnage. Low Panama Canal water levels, weather and port labour issues have added to bottlenecks.
Ocean freight rates have risen over the past year, with the Baltic Dry Index roughly doubling, though remaining below 2021 record levels.
Higher ocean freight costs raise landed costs for imported feed ingredients and reduce competitiveness of exported grains from origins needing long routes. Feed buyers should expect elevated freight into Asia and other distant markets.
fcc-fac.caJul 17, 2024Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
