Rise in global transportation challenges
An ag economist says some global transportation challenges are impacting the ag industry as the new year approaches.
Greg McBride with Allendale says drought conditions continue to limit movement along the Panama Canal and shipping companies are scrambling to find alternative routes. “You do have ships that are going around South America, some of them are going around South Africa, and some of them are going back towards the Suez Canal.”
He tells Brownfield some recent drone attacks on chemical tankers in the Red Sea have created additional disruptions. “Some of these other shipping companies are now avoiding the Red Sea and the Suez Canal. Now you’ve got two of your major thoroughfares that basically cut off a third of your travel time for these shipments and are out of the game right now.”
McBride says carriers are now facing even longer detour routes and it’s causing a major uptick in shipping fuel costs.