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Iran conflict causing ag logistics disruptions
The National Grain and Feed Association is closely monitoring how the conflict in Iran is impacting ag transportation and global supply chains.
CEO Mike Seyfert says, “Where our focus is at is the logistics, or vessel availability for being able to do exports.”
He tells Brownfield that two weeks ago, shippers faced maritime surcharges of up to $1.5 million out of the Center Gulf, adding roughly 50 cents per bushel.
“That has come off a little bit now where it’s about a 25 cent per bushel surcharge, but there’s still a lot of volatility there and our folks are concerned that could go up.”
Seyfert says fuel is another concern.
“Increased fuel costs for trucking. It’s about two cents per bushel for every 100 miles that we go by truck with the current increase in diesel prices.”
He says these factors could impact farmgate prices and feed input costs down the road.
Mike Seyfert on Iran conflict:
Tags: ag markets, ag transportation, diesel prices, export costs grain, farmgate prices, feed costs, fuel surcharges, global supply chains, grain and feed association, grain exports logistics, iran conflict shipping, maritime surcharges, shipping volatility, trucking costs agriculture, vessel availability