Soaring Freight Costs Will Squeeze Traders, Boost Food Prices

Rising freight set to boost import costs to Asia: Rabobank
More than 85% of grains, oilseeds sent by dry-bulk carriers

The CMA CGM Aquila, left, and the Mediterranean Shipping Co. (MSC) Romanos, centre, sit dockside at the Port of Felixstowe Ltd., a subsidiary of CK Hutchison Holdings Ltd., in Felixstowe, U.K.Photographer: Chris Ratcliffe

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By Agnieszka de Sousa

December 5, 2017 at 8:41 AM UTC

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It’s getting more expensive to transport commodities around the world, threatening to squeeze profits for global traders and raise food prices.

The Baltic Dry Index, a benchmark of shipping rates, surged 73 percent in 2017 to a four-year high because of a slowdown in new bulk freight capacity. More than 85 percent of global trade in grains and oilseeds is transported by dry-bulk carriers, according to Rabobank International.