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Farm Progress America, February 6, 2024

Mike Pearson examines a new report out by a group of ag profesors that raises global shipping concerns in the Panama Canal due to the ongoing drought and recent rebel attacks in the Red Sea.

February 6, 2024

Mike Pearson examines a report out by a group of ag professors at North Dakota State University and the University of Connecticut, about shipping in both the Panama Canal and the Suez Canal.

Recent crisis have caused challenges to the United State trade.

A report, "Ripple effects of shipping lane disruptions on U.S. ag," examines the crisis.

Over 40 percent of U.S. trade goes through the Panama Canal. The Panama Canal has had to reduce traffic by 30 percent since last summer due to a drought. Over 26 percent of the soybean exports pass through the Panama Canal and 17 percent of corn pass through it.

The Suez Canal is also facing delays-- however, it's due to rebels shooting at ships. The slowdown has caused the canal traffic to go from taking five days to three weeks due to the rerouting of ships.

The ships on the Red Seas and Suez Canal can't be insured due to the rebel attacks.

Not only, is the slow down a problem but so is the cost. A 20 foot shipping container went from costing $700 to ship in November to $1,900 today.

Shipping issues have been constant for over four years and they are set to continue.

The ag professors said in the paper that grain producers need to develop more adaptable trade practices in order to survive shipping issues.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.

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