Surely you have already heard of several knock-on effects on container shipping from the steep increase in demand for containerized goods throughout the second half of 2020 and into 2021. More recently perhaps also the effects going “in the opposite direction” – when the market forces are felt like gale force winds.
Feeling some of that headwind – have been the US soya bean exporter. But there is more to the story…
Explore the “Shipping Number Of the Week” in 2021 from BIMCO:
BIMCO’s Shipping Number of the Week
2.5m tonnes of US soya beans exported in containers in four months
In the first four months of the 2020/2021 US marketing year for soya beans (which started on 1 September), 2.5m tonnes of soya beans were exported in containers, accounting for 6.3% of total exports, while 37.1m tonnes departed the US in dry bulk ships.
Despite the record high containerised soya bean exports, the share of total US soya bean exports being sent in containers has fallen from previous years and is currently at its lowest level since the same period in 2017. The scenario is unfolding at a time when some agricultural exporters report of difficulties getting access to containers, accusing carriers of preferring to send empty containers back to start a new fronthaul trip out of Asia, rather than accept agricultural cargoes.
Total US soya bean exports rose 89.3% in the first four months of the season, compared to the 2019/2020 season, while exports of containerised soya beans have ‘only’ risen by 52.2%.
Almost half of US containerised soya beans are exported from the ports of LA and Long Beach. A further 40% are exported from the Ports of New York and Virginia. Of total US soya bean containerised exports, a whopping 99.7% are sent to Asia.
Assuming that one 20-foot container (TEU) can fit 20 tonnes of soya beans, around 124,400 TEU containers have sailed from the US with soya beans in the first four months of this season, a rise around 81,700 TEU in the previous season.
“The drop in the share of exports that are containerised confirms that some exporters may be having trouble securing boxes. However, the fact that overall volumes have risen indicates that containers have been available,” says Peter Sand, BIMCO’s Chief Shipping Analyst.
“Furthermore, the 89.3% growth in total soya bean exports shows that even if some exporters have been unable to get hold of containers to fill, they have still been successful in exporting their soya beans,” says Peter Sand, BIMCO’s Chief Shipping Analyst.
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More analysis from BIMCO can be found here