Prepared for the United States Soybean Export Council (“USSEC”) and the Soy Transportation Coalition (“STC”)
USSEC- Analysis of Transit Times, Transportation Costs and Predictability of Delivery Prepared for The United States Soybean Export Council (“USSEC”) and the Soy Transportation Coalition (“STC”) September 23, 2014 Our Understanding of the Situation • The United States Soybean Export Council (“USSEC”), along with the Soy Transportation Coalition, is interested in developing a promotional piece that will quantify and compare transportation costs, transit times and predictability of delivery of transporting soybeans from the U.S., Argentina and Brazil to the major destination markets. • The origins that have been selected include: – Mitchell, SD; – Davenport, IA; – Sorriso, Mato Grosso state, Brazil; – Londrina, Parana state, Brazil; and – Rufino, Santa Fe province, Argentina • The destination markets that have been selected include: – Shanghai, China; – Tokyo, Japan; – Kaohsiung, Taiwan; – Jakarta, Indonesia; – Ho Chi Minh City, Vietnam; – Manila, Philippines; – Hamburg, Germany; – Rotterdam, the Netherlands; and – Port Said, Egypt 2 Table of Contents • Executive Summary • Transportation Costs • Transit Times • Predictability of Delivery 3 Executive Summary- Transportation Costs • The cost of moving soybeans out of Sorriso, MT are higher than out of any other origin. This is primarily due to the high cost of moving soybeans from Sorriso to the primary ports in southern Brazil (Santos and Paranagua). – The cost of transporting soybeans by truck (truck accounts for ~60% of the soybeans moved from MT to the ports) from Sorriso, MT to Santos and Paranagua accounts for approximately 70% of the total transportation cost to move soybeans to final destination markets. – The cost of transporting soybeans from Londrina, PR to Paranagua is significantly lower than from Sorriso, MT due to the shorter distances that truckers have to travel.
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