Fertiliser importers switch from east coast to west amid Middle East turmoil leading to a 200% surge product coming in through the Port of Liverpool. Tony McDonough reports
Port of Liverpool owner Peel Ports says it has seen a 200% a surge in fertiliser imports.
One of the knock-on effects of the disruption around the Strait of Hormuz is a shift in global trade routes. Although the majority of fertilisers are typically imported through ports on the UK’s east coast and increasing number of importers are now looking west.
Customers are now looking to deploy larger ships to improve cost efficiency, secure product when it becomes available and reduce exposure to potential disruption elsewhere in the supply chain.
Liverpool’s capacity for deep-sea vessels, and its position on the west rather than east coast, is driving interest to the port.
There is also driving greater demand for warehousing capacity across the North West for stockpiling as a hedge against further disruption or even a complete loss of supply.
Phil Hall, port director Liverpool at Peel Ports Group said: “Customers are looking closely at how they can strengthen resilience across their supply chains.
“For many, that means reviewing vessel choice, storage capacity and alternative ports to ensure they can continue to move product efficiently despite ongoing uncertainty in global markets.
“We have invested millions in facilities such as the recently developed Alexander Warehouse.
Although we took the decision well before the situation in Iran, that speculative move does mean we are now ready to support this market as interest increases for immediate solutions that can support fertiliser imports and provide greater supply chain flexibility.”
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The UK fertiliser market relies heavily on imported products including urea, ammonium nitrate and phosphates.
As a result, importers are placing greater emphasis on infrastructure that can support efficient discharge, storage and distribution of cargoes once they arrive in the country.