A fertilizer market expert says shipping delays due to rising tensions in the Middle East will likely raise the price of urea and phosphate.
Josh Linville with StoneX Group says few fertilizer shipments are going through the Suez Canal. Instead, the ships are taking a longer and safer route to the United States and it’s expensive.
“If you look at a vessel, you’re talking about $500,000 to $700,000 more and when you look at that over the course of 30,000 to 40,000 tons shipped, we could be talking about an increase anywhere from $15 to $25 more per ton just for the vessel freight.”
He tells Brownfield those costs are expected to reach the farm and producers should stay in contact with local retailers to discuss price and availability.