Sea Freight And Exchange Rates

Sea freight is a significant component of fertilizer cost and in the last few years prices have been volatile primarily due to changes in demand from the mining industry for bulk freight.

The Baltic Panamax Index provides a relative measure of the cost of sea freight over time and illustrates that prices have changed more than tenfold over a relatively short period.

The other factor affecting domestic fertilizer prices is fluctuation in the Australian dollar exchange rate. A decrease in the value of the dollar increases the domestic price and vice versa all other factors being equal.