Freight rates tumbling
Relief in sight as shipping rates fall across the board
May 20, 2011
It looks like the price of shipping is beginning to ease - good news for everyone in the feed chain.
U.S. Wheat reports that the U.S. Gulf - Japan route dropped from record highs of $75 - $80 per ton to $37 last week. "Around the world, depending on the route and vessel, freight rates fell anywhere from $3 to $13 last week, with only a bit of inching back up this week", the association says. The longer voyage rates are dropping proportionally faster than the shorter routes, USW vice president Vince Peterson said.
Rates have been falling across the board due to easing of demand, new tonnage entering the market, fuel prices edging downward, a weak grain market in South America and an easing of port congestion.
Photos: Ken Hammond, USDA
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