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Grain logistics are becoming more expensive

Зърнената логистика става по-скъпа

A growing number of ships carrying grain have been diverted from the Suez Canal to routes around the Cape of Good Hope this week as attacks on shipping in the Red Sea continue, analysts said on Friday.

About 7 million tons of grain cargoes normally transit a month through the Suez Canal to the Red Canal, but this has dropped significantly as rebels continue to attack ships despite US-led airstrikes on Houthi positions in Yemen.

"We estimate that another 12 ships have been diverted from the Red Sea this week, carrying a total of about 700,000 tonnes of grain," said Ishan Bhanu, lead agricultural commodities analyst at data provider and analyst Kpler.

"A total of around 4.5 - 4.6 million tons of grain cargoes have avoided the Red Sea since December. We also see more and more wheat being transported from France and the Black Sea to Asia, diverting away from the Red Sea.

However, many bulk carriers still transport grain through the region.

"There are vessels of Black Sea origin still plying the route," Bhanu said. "Diversion is more expensive for these ships compared to those sailing from Europe or the United States."

Traders said it has now become more difficult, but not impossible, to book ships for Red Sea voyages.

"It's difficult but you can still find ships," said a European grain trader involved in booking grain export ships to Asia. "Freight costs have gone up and not everyone wants to sail across the Red Sea even at a premium, but some will."

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