SHIPPING COSTS SET TO RISE IN 2021 COVID-19 vaccine availability to spark global economic growth, increasing the volume of global commodity shipments by Michael King 50 January 2021 / World Grain / World-Grain.com ©Alexey Lesik - stock.adobe.com F or those in the business of shipping and grain, 2020 was a rollercoaster ride. Second-quarter lockdowns prompted demand for some grainbased products to spike as consumers stockpiled and VSOXUJHGRQVSHFL¿FJRRGVLQFOXGLQJVSHFLDOW\ÀRXUV However, overall global economic demand for most FRPPRGLWLHV IHOO SUHFLSLWRXVO\ DQG EXON FDUULHU VKLSSLQJVSRWDQGWLPHFKDUWHUUDWHVVOXPSHGDFFRUGLQJO\ ,Q WKH VHFRQG KDOI RI WKH \HDU GHPDQG UHWXUQHG prompting a summer upsurge in shipping costs. For FDSHVL]H YHVVHOV WKLV ODUJHO\ WDLOHG R൵ LQ WKH IRXUWK quarter, but strong agricultural volumes helped support prices for vessels in the panamax class and smaller - WKHZRUNKRUVHVRIWKHJUDLQDQGVR\EHDQWUDGHV " Support for the mid-sized ships in the last months of WKH\HDUFDPHIURP86H[SRUWVRIVR\EHDQVZKLFKKDYH EHHQUHFRUGEUHDNLQJLQWKH¿UVWPRQWKVRIWKHH[SRUWVHDson, " noted shipping association Bimco in its November report. " Outstanding sales for this season are also high - 30.1 million tonnes - and records could be broken. " ,QGHHGVR\EHDQH[SRUWVIURPWKH$PHULFDVWR&KLQD gifted ship owners welcome support throughout the latter part of 2020, while grain exports from the Black Sea and other Northern Hemisphere origins have provided additional ballast. ³:LWKVWURQJVR\EHDQH[SRUWVIURPERWK%UD]LODQG WKH 86 &KLQD KDV LPSRUWHG D WRWDO RI PLOOLRQ WRQQHVRIVR\EHDQVZKLFKLVPRUHSDQDPD[ORDGV ²DSSUR[LPDWHO\WRQQHVSHUORDG²PRUHWKDQ LQ WKH ¿UVW PRQWKV RI ODVW \HDU´ QRWHG %LPFR LQ November. " Given the long sailing distances between %UD]LO DQG WKH 86 WR &KLQD WKH LQFUHDVH LQ WRQPLOH demand is considerable. " Other grain exporters in the Northern Hemisphere have also provided extra demand for these ships. In the \HDUWRGDWHWKHUHKDVEHHQDLQFUHDVHLQWRQPLOHhttp://www.World-Grain.com