The negative impact of the increase in maritime freight on Argentine agribusiness trade

Maritime freights, at a maximum of 11 years, are added to the conditions for Argentine exports in the 2nd semester, in a context of less grain availability and the Paraná downstream. The routes that became more expensive are Africa and Asia. Since the beginning of the COVID-19 expansion, ocean freight prices have been exposed to strong demand shocks that caused great volatility. During the first months of 2020, freight values fell sharply, reflecting an initial drop in the demand for merchandise, and the collapse of the value of fuels. The current situation a year and a half ago, contrasts markedly with the current panorama of international trade with freight rates reaching maximum in 11 years. The sharp rise in freight rates for the transport of dry bulk cargo is mainly due to the reactivation of infrastructure construction in various regions, which has led to a large demand for iron ore. In addition, the strong increase in imports of agricultural commodities by China has added ...