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.
Alan Barrett
Director of Research and Consulting
Higby Barrett LLC
Alan Barrett is the Director of Research and Consulting for HIgby Barrett LLC. He is an accomplished commodity economist with more than 25 years of experience in futures and cash markets with a focus on cotton, commodity projects, non-traditional agricultural products, transportation and supply chain studies. Alan spent six years as a commodity futures broker. His expertise encompasses feasibility studies of oilseed crushing plants (soybean canola, and cottonseed), grain elevators, export elevators, shuttle elevators, grain container operations, flourmills and other processing facilities. Alan also has conducted transportation supply chain studies for grains, oilseeds, fertilizer, coal, natural gas, crude oil, and petroleum products. Alan has considerable experience in non-traditional agricultural products such as coal, coke, natural gas, chemicals, hydraulic fracturing fluid, hydraulic fracturing proppants, glycerin, fertilizer, micronutrients, salt, limestone, cement, iron ore, pig iron, and steel, especially feed ingredients. Mr. Barrett has a BS and MS in Agricultural Economics from the University of Tennessee.
