Suez Canal Blockage Highlights Global Shipping Issues Affecting Ag

With news to start the week that the Taiwan-owned Ever Given container ship that’s been wedged in the Suez Canal the last week is loosening and may be freed soon, the world economy could breathe a sigh of relief soon. But the disruption is just a high-profile story that underscores the larger issue: global shipping faces a lot of challenges, and they’re causing costs to surge all the way back to the farm gate. There are a lot of contributing factors like the COVID-19 pandemic and related labor issues, and it’s causing shipping rates to double or triple, forcing ag retailers and input providers to pass along those costs to farmer customers both in the U.S. and around the world. One example: As the Ever Green continues to block the Suez Canal, some ships are changing destinations or charting courses around the Horn of Africa, an adjustment that adds 6,000 miles to some journeys at an additional cost of $300,000 per barge in fuel alone. See more on the shipping industry’s issues.