Weaponized waterways unsettle grain freight

In their recently published book, “How to Win a Trade War,” the Financial Times economics columnist Soumaya Keynes and the Peterson Institute’s Chad Bown explained how governments and companies should fight the trade conflicts that have become a permanent feature of the global economy. In the current shipping climate, though, a more fitting title might have been “How Trade Becomes a Weapon of War.”

However, Will Fray, director at Maritime Strategies International (MSI), told World Grain that geopolitics tells only part of the story. He said most of the market’s firming through the first quarter was down to non-geopolitical factors, with grain shippers swept into the bigger demand swings running across the bulk market.

“At the forefront has been Chinese import behavior,” he said. “We have been surprised at how much China has maintained its import demand for key raw materials, like iron ore and bauxite, despite softening consumption dynamics and high stockpiles. Read more at World Grain.com