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Middle East Frets as Fertilizer Ships Stack Up
12 Mar
Summary
- Middle East fertilizer makers load ships to avoid overflow.
- Iran conflict halted global fertilizer trade via Strait of Hormuz.
- Producers aim to prevent output disruptions by continuous loading.
Middle Eastern fertilizer producers are facing a critical juncture, necessitating the continuous loading of ships to prevent storage facilities from overflowing. This urgent measure comes as the conflict in Iran has severely disrupted global fertilizer flows. Notably, the Strait of Hormuz, a vital waterway for approximately one-third of the world's fertilizer trade, has seen extremely limited transit since the conflict began on February 28th.
At least eleven bulk carriers have loaded fertilizer since the conflict's onset, with eight more currently being loaded, according to ship tracking data. This activity underscores producers' efforts to manage inventory and avoid output disruptions. "If production continues and warehouse inventory hits maximum capacity, they'd have to shut production," explained Madeleine Overgaard, dry market data manager at Kpler. The focus is largely on urea, a key nitrogen fertilizer, where maintaining quality necessitates prompt export and prevents storage issues.
