Coronavirus issues, particularly in China, are creating real problems for Dried Distiller Grains (DDGS) shipments. The lack of inbound containers from China means that there are not enough containers to ship DDGS out of the US.
DDGS is a byproduct of ethanol production, and in this part of the Midwest US, there is much ethanol production. It is some of the most productive corn land in the US. The DDGS are primarily used as animal feed. China imports DDGS as feed for pork in the older times. I’m not sure how much they are importing right now due to the tariff fight and the pork disease issue in China. China’s pig production is just recovering from that tragedy a year or so ago.
The article gives an indication of container rates North Asia to West Coast US. They are trending down to attract business. blanked sailings are also a feature of the current environment in container shipping from China.
It’s a mess!
- Authors
- George Griffiths Sergio Alvarado
via Container shortages in Chicago impact DDGS on coronavirus delays | S&P Global Platts
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