Egypt is reportedly switching from purchasing grain FOB and then managing its own freight risks to buying C&F so that suppliers bear any higher costs in volatile markets. Freight rates have been falling and should continue to do so as the global economy goes into recession. Bulk shipping charges per ton have fallen in recent months in 75 percent of the routes tracked by WPI; they’ve risen in just 18 percent of the markets. On the other hand, the shipping industry is under unique pressures. There are port delays due to increased inspections and reportedly the burning rather than reuse of components such as pallets arriving from infected countries. The oil industry is using many ships as floating storage tanks during a supply...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.