An improved outlook for global
bulk shipping rates spells bad news for grain exporters as they
go into the latest sales campaign, with increased freight costs
squeezing profit margins and adding to price competition in
leading markets, reports Reuters today.
US wheat exporters look to be the hardest hit as ship
owners prepare to crank up rates, expecting a clamour for their
vessels. The biggest hike may be to the major Middle Eastern
market - giving smaller producers, situated nearer the region, a
price edge.
"When it comes to the grain season ex-US we believe this
will be a strong season and we believe the same will be the case
with the season ex-Black Sea," said Jens Ismar, chief executive
of shipping group Western Bulk, says the report.
"This, combined with the fact that the world is still
increasing its demand for raw materials, make us share the view
of almost all analysts predicting a stronger market in the
second half of this year."
The US Department of Agriculture has forecast that US
wheat exports in the 2014/15 season will total 25.2 million
tonnes, the smallest volume in five years. It expects the
European Union to ship 28 million tonnes, its second-highest
volume after a record 30 million in 2013/14.
For the full story go HERE.
The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine GFMT which is published by Perendale Publishers Limited.
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