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Significant Growth in Containerized Grain
Exports in 2007.
Containerized grain exports in 2007 rose 113 percent from 2006, according to the U.S. Department of Agriculture. Containerized shipment – the transport of commodities via steel boxes primarily 20 feet or 40 feet in length – has been rapidly increasing over the past several years, primarily due to the rise in bulk ocean rates and a trade imbalance with Asia resulting in more goods, and storage containers, arriving in the United States than exiting the country. The recent weakening of the U.S. dollar, and the corresponding effect on demand for commodities, has only accelerated this trend. In the previous year, U.S. grain was exported in over 415,000 containers, with soybeans the leading agricultural commodity.
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Commodity
Soybeans (whether or not broken)
Corn (other than seed corn)
Animal Feed (except dog or cat food)
Wheat (other than Durum) & Meslin
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LBS
5,155,363,774
4,257,394,095
1,216,999,352
1,039,901,522 |
TEUs
181,701
148,025
42,872
30,062 |
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NOTE: Containers are categorized by their size dimension. The most common are TEUs (Twenty Foot Equivalent Units) or FEUs (Forty Foot Equivalent Units). An ocean vessel capable of transiting the Panama Canal typically transports up to 5,000 TEUs, while the largest, newly constructed ocean vessels have a capacity up to 14,000 TEUs.
In addition to the rise in bulk ocean rates and the trade imbalance with Asia, containerized shipments are an attractive shipping avenue for the soybean industry for a number of reasons:
1.) Many customers are demanding soybeans and soymeal in smaller volumes more commensurate with their operational needs and reducing the need for unnecessary storage, which containers can accommodate.
2.) Customers increasingly have specific demands for their soybeans – whether of a certain quality or often with certain identity-preserved traits, which containers can facilitate.
3.) Customers often desire to purchase from a particular region of the country. As the soybean industry becomes more international, it is simultaneously becoming more local and relational. Containerized shipments further enable this trend.
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The Soy Transportation Coalition is comprised of seven state soybean boards, the American Soybean Association, and the United Soybean Board. The National Grain and Feed Association and the National Oilseed Processors Association serve as ex-officio members of the organization. |
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