Ton Mile Trader

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Here are the ag clips courtesy of the USDA.

Grain vessel loading activity in the U.S. Gulf is likely to increase in the near term. During the week ending January 12, 66 oceangoing grain vessels were expected to be loaded during the next 10 days—25 percent higher than the average (53 vessels) for the past eight weeks. The last time this many vessels were expected was March 3, 2011, when 76 vessels were expected to be loaded. Ocean freight rates for shipping bulk grain have remained relatively low.

As of January 13, the ocean freight rate for shipping bulk grain from the Gulf to Japan was $51.00 per metric ton (mt), 8 percent less than the previous week. The cost of shipping from the Pacific Northwest to Japan was $27 per mt, 7 percent less than the previous week. Ocean rates are likely to remain low through the Chinese New Year holiday season, which is traditionally a slow period for dry bulk shipments.

Construction on the Panama Canal’s third set of locks stopped Monday when workers discontinued work to demand payment of back wages, an increase in minimum wages, and better working conditions. The expansion work, which is expected to double the canal’s capacity by late 2014, has been slowed by labor disputes in the past. The canal is a vital outlet for U.S. grain shipments to Asia.  Close to 31 million metric tons of U.S. grain exported to Asia transited the canal during fiscal year 2010.

During the week ending January 12, 37 ocean-going grain vessels were loaded in the Gulf, down 26 percent from the same week last year.

Good Fortunes