Brazilian port operators including units of global grain traders Cargill Ltd. and Bunge Ltd. will unveil a proposal this week to lower Panama Canal tariffs and cut their costs in shipping agricultural commodities to their main market China.
Reuters reports they will argue that at current tariffs, shipping grains from Brazil’s northern ports via the Cape of Good Hope is almost $206,000 cheaper on a per-ship basis than using the Canal, despite the shorter distance.
This could potentially cut shipping costs and shorten journey times by 4-5 days between Brazil and Asian markets, according ATP, of which Cargill, Bunge, and Brazil’s grain trader, Amaggi, are members.
Read the full report at Reuters.
