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Ocean Freight Plunges

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    #21
    There is another solution, it called modernize.

    There is a company called “Boxbay” they have set up a facility at Jebel Ali in Dubai. They have taken robotic, automation to the next level like amazon, Fedex and others have done. Instead of pallets they do it with containers. They have partnered with a German company called SMS.

    The system stacks containers within slots in a steel rack ( like pallet racking). It delivers 3 times the capacity of a normal port container yard ( containers stacked on each other traditionally vs new system where each container has a independent slot. This reduces the footprint for the terminals by 70%. They are fully electrified and automated cranes built into the structure where individual containers can be accessed with out moving other containers. The energy cost are 29% lower, and the current structure holds 792 containers at a time.

    In the first six months of opperation, performance, reliability, energy consumption goals have been exceeded by far.
    “For ports worldwide, this innovative and disruptive technology will dramatically increase through put/handling volumes and container storage capacity.

    300% faster,

    Www.boxbay.com
    Last edited by Rareearth; Nov 24, 2021, 16:04.

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      #22
      Heads-up . . . The Baltic Dry Index is again plunging. Ships are cheap again.

      This is a bearish warning for dry freight commodities.

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        #23
        Shouldn't cheap ocean freight provide support for more import/export?

        It's sorta like when the basis narrows at the elevators, that's when I get some business done.

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          #24
          Originally posted by beaverdam View Post
          Shouldn't cheap ocean freight provide support for more import/export?

          It's sorta like when the basis narrows at the elevators, that's when I get some business done.
          Good point . . . The question may be; Is the plunge in ocean freight a global demand signal?

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            #25
            US grain exports down significantly but the still expect to meet predicted goals?

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              #26
              Originally posted by shtferbrains View Post
              US grain exports down significantly but the still expect to meet predicted goals?
              IMO no . . . USDA has been wrong all year.

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                #27
                Was in C-TIRE and WALLYS few days ago shelves still full of stuff. Food ,toys , clothes and electrical. 70" smart tv $850 . Didn't all the retailers say get yer shopping done soon cause of limited supplies everything will run out. They even have there spring stuff out now bikes garden tools, lawn trimming stuff how did that container get here so fast. Can't wait till wife buys more lawn ornaments******

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                  #28
                  Originally posted by errolanderson View Post
                  Heads-up . . . The Baltic Dry Index is again plunging. Ships are cheap again.

                  This is a bearish warning for dry freight commodities.
                  Just to add a bit of context for perspective.

                  Since the original post on Oct 2, 2021...

                  March soybeans are up $2.35/bu (12.55 to 14.90)
                  March corn is up $.75/bu (5.50 to 6.25)
                  March wheat is down $.07/bu (7.68 to 7.61)
                  March canola is up $137/t (876 to 1013)

                  Worth being aware of but just one piece of the puzzle (IMO).

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                    #29
                    Originally posted by TechAnalyst View Post
                    Just to add a bit of context for perspective.

                    Since the original post on Oct 2, 2021...

                    March soybeans are up $2.35/bu (12.55 to 14.90)
                    March corn is up $.75/bu (5.50 to 6.25)
                    March wheat is down $.07/bu (7.68 to 7.61)
                    March canola is up $137/t (876 to 1013)

                    Worth being aware of but just one piece of the puzzle (IMO).
                    Demand for ag commodities does not tend to be as elastic as consumer goods, or even industrial commodities. As was pointed out above, if freight rates drop, it makes the commodity cheaper at the other end, or it allows the exporter to pay more at this end.

                    Farmers are not making and selling widgets.

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                      #30
                      Originally posted by AlbertaFarmer5 View Post
                      Demand for ag commodities does not tend to be as elastic as consumer goods, or even industrial commodities. As was pointed out above, if freight rates drop, it makes the commodity cheaper at the other end, or it allows the exporter to pay more at this end.

                      Farmers are not making and selling widgets.
                      Have to have fewer boats hauling short crop.
                      Might get slower yet.

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