U.S. CONTAINERIZED GRAIN & OILSEED EXPORTERS - INDUSTRY PROFILE AND SURVEY - PHASE II

Containerization has evolved from an industry serving niche markets to an industry creating niche market opportunities. While grain and oilseed industry is dominated by bulky, homogenized product marketing that is heavily reliant on economies of scale in delivering competitively priced commodities, technological advances, foreign market privatization, and declining global market transaction costs have supported diversification of this industry in niche markets such as small-volume containerized products. The findings of this research suggest an established and growing U.S. shipper population is active in marketing containerized grains and oilseed products. A survey of shippers suggests that premiums for containerized grain and oilseed products are $5 per hundredweight, compared to the local bulk counterpart market. The net return to shippers is opaque as business practices and market fundamental influence the costs associated with delivering the product to a customer overseas versus a local grain terminal or processor. Assuming market activity is positively correlated to profitability, the grain and oilseed container shippers would seem to be achieving acceptable levels of profit. Shippers report that container exports increased annually between 2000 and 2002, and are projecting it will increase another 20% by 2005. Although many factors affect industry ability to realize this growth, shippers deem ocean freight rates as most crucial. Ocean liner routes/services, distance to container terminal, and foreign buyer information are also rated with above average importance.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=473
• Corporate Authors:

  Department of Agriculture

  1400 Independence Avenue, SW
  Washington, DC  United States  20250
• Authors:
  • Vachal, K
  • VanWechel, T
  • Reichert, H
• Publication Date: 2003-7

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 22 p.

Subject/Index Terms

• TRT Terms: Container terminals; Containerization; Costs; Distance; Exports; Freight transportation; Grain; International trade; Marketing; Ocean liners; Ocean shipping; Profitability; Profits; Rates; Routes; Shipping; Surveys
• Uncontrolled Terms: Oilseed
• Geographic Terms: United States
• Subject Areas: Finance; Freight Transportation; Marine Transportation;

Filing Info

• Accession Number: 00964108
• Record Type: Publication
• Report/Paper Numbers: MPC Report No. 03-151
• Files: TRIS
• Created Date: Oct 3 2003 12:00AM