US soyabean exporters hit by

IN BRIEF

USA: Bulk liquid storage and handler International-Matex Tank Terminals LLC (IMTT) announced on 25 August that it would nearly double capacity at its Geismar, Louisiana marine terminal by building six new storage tanks, two pipelines and related dock and loading infrastructure to handle and store biodiesel, renewable diesel and feedstocks.

The investment would support Renewable Energy Group (REG)’s nearby biorefinery expansion, set for completion in 2023.

“With this project, IMTT expects to be connected via pipeline to nearly one-third of the nation’s renewable diesel production capacity (currently under construction) as of 2023,” IMTT said.

UKRAINE: Global agribusiness giant Cargill has increased its stake to 51% in its Ukrainian grain terminal joint venture Neptune in the port of Pivdenny in the Black Sea, World Grain reported on 20 July. The 5M tonnes/year terminal could handle various types of oilseeds, corn, barley cereals and wheat.

RUSSIA: Leading Russian transport and logistics firm Delo Group has opened a reconstructed deep water grain terminal in Novorossiysk port, World Grain reported on 21 July. Delo said it had invested some US$68M in the KSK Grain Terminal, which could now receive vessels up to 100,000dwt, increasing its capacity to 7M tonnes/year. The KSK terminal now ranked number two in terms of trans-shipment volumes in Russia.

AUSTRALIA: GrainCorp is planning to increase grain storage capacity at several sites by 1M tonnes in anticipation of a larger 2021/22 harvest, World Grain reported on 2 August.

US soyabean exporters hit by container squeeze

A global shipping container squeeze is affecting US soyabean exports, Freight Waves reported on 25 July.

While soyabeans and other US commodities were experiencing stronger export volumes this year, the global shipping container squeeze was affecting domestic agriculture exports, Soybean Transportation Coalition executive director Mike Steenhoek told Freight Waves.

As of 15 July, the cost to move a loaded container from China to the US West Coast had a spot rate of US$6,542, according to the Freightos Baltic Index, while the cost to move loaded containers from the US West Coast back to China was US$1,112.

“The container situation has affected us, though only about 7% to 8% of soyabean exports occur by container,” Steenhoek said. “It is certainly having an impact on bulk exports. Those soyabean exporters who use containers ... we have a supply chain that’s overly subscribed. It really isn’t just felt with containers, but also things like available slots on the vessels themselves.”

The US Department of Agriculture’s quarterly trade forecast projected US farm exports in fiscal year 2021 to reach US$164bn, the highest total on record, Freight Waves wrote. China was projected to be the top agricultural export customer at a record US$35bn, due to its demand for soyabeans and corn.

Steenhoek said he expected supply chain issues to continue in the foreseeable future, including the squeeze on containers and rail availability, and a nationwide truck driver shortage.

Ship loads on Paraná River may fall 40%

Bulk carriers in Argentina may be forced to reduce loads by 40% by the end of September or early October due to low water levels on the Paraná River, the country’s key export waterway, the general manager of the Chamber of Port and Maritime Activity says.

If river conditions continued to deteriorate, Handymax ships that normally carried 35,000-40,000 tonnes would load around 17,000 tonnes less, Guillermo Wade was quoted as saying in a 28 July AgriCensus report. For 70,000 tonne Panamax vessels, ships could be loading up to 21,000 tonnes less.

Bulk carriers were currently loading 21% less grain at Rosario ports, Wade said. Vessels

Paraná River water levels near Rosario in Argentina are around 0.04m against the historical July average of 3.22m unable to complete their loads had to go to Necochea or Bahia Blanca terminals, in Buenos Aires province, or to ports in southern Brazil.

Low water levels on the Paraná could lead to losses of US$315M for the Argentine agro industrial sector between March and August 2021, according to a study by the Rosario Grain Exchange (BCR).

Rates to remain strong through third quarter

Soaring shipping rates are expected to remain strong through to the third quarter of this year, according to a World Grain report on 19 July.

Overall demand for bulk shipping in the first four months of 2021 reached a record 1.69bn tonnes, up 6.1% compared with the previous year, according to shipping association Bimco.

Capesize earnings in May were running at a daily average of US$36,536, more than nine times higher than at the same point last year. Panamax earnings stood at US$24,903/day.

“The appetite for cargo transport has increased across the board,” Bimco chief shipping analyst Peter Sand told World Grain. In the first four months of this year, Capesize demand rose by 6% and Panamax demand increased by 1.5%.

Drewry shipping consultant lead analyst Rahul Sharan expected rates to remain strong through the third quarter due to Brazil’s soya season remaining active over the next two to three months.