Global grains trader Bunge is exploring alternative shipping routes and working with customers to minimize any disruptions caused due to the conflict in the Middle East, a company spokesperson told Reuters.
While the company did not immediately provide details on any alternative routes, it said it has so far seen a limited impact on its ocean-going vessels.
Shipping through the Strait of Hormuz has been disrupted after U.S.–Israeli strikes on Iran, severely constraining trade flows through the narrow Gulf chokepoint.
The International Grains Council estimates that around 22 million metric tons of grains, oilseeds and products deliveries to the Persian Gulf flowed through the Strait of Hormuz over the past five years, accounting for about 3% of global trade.
Apart from processing and transporting grains and oilseeds, Bunge also handles fertilizer shipments through its logistics network.
Some 25% to 35% of the world's fertilizer raw-material trade pass through the Strait, and analysts warn that its closure could upend supply chains and raise production costs — a surge that would eventually be felt by consumers.
Nutrien, Canada's largest agricultural chemicals company, said on Wednesday it was closely engaged with customers as conditions in the Middle East continue to evolve.
Commodities traders Trafigura and Glencore declined to comment on any impact from the conflict, while Bunge rivals Archer-Daniels-Midland and Cargill did not immediately respond to Reuters' requests for comment.
(Reuters)