Logistics for most products is a ratable service because the origination, destination and quantity shipped are all known. For agricultural goods and commodities in general, the impacts from weather and government regulations are constantly shifting originations and destinations, which creates a constant challenge for logistics managers and transportation managers.
For anybody in the supply chain, China’s 25% tariff on soybeans is a great example of how quickly the world changes in the field of commodities. The tariffs forced Chinese firms to buy from Brazil and Argentina, which in turn forced the rest of the world to buy from the U.S. This has given U.S. soybean exporters an opportunity to develop supply chains to many new customers. Many of these countries are the new export growth opportunities. The next time Brazil or Argentina have a crop issue, the U.S. exporter will be ready.