<article><p class="lead">Average freight rates for dry bulk fertilizers have risen for a seventh consecutive week, after hitting a low at the end of April.</p><p>A basket of freight rates selected by <i>Argus </i>was supported this week by the continued rise in bunker prices. The basket's average has now risen by $4/t since the end of April. </p><p><i>Argus</i> examined the cost of shipping on four trade routes to key destination markets east and west of Suez — Saudi phosphates and Red Sea potash to India, and Middle Eastern sulphur and Algerian urea to Brazil. </p><p>The average freight cost rose by $0.50/t this week, up from a $0.25/t increase last week. </p><p>Rates across the four routes fell on average for six weeks in a row from 19 March. The cost of shipping fell by an average of $5.75/t, hitting an average of $11.875/t for the basket of routes by 23 April. This average has now risen for seven weeks in a row, hitting $15.875/t this week. </p><p>The drop in freight rates in the six weeks to the end of April broadly softened the impact on fertilizer producers' fob levels, with shipments continuing through the slowdown in overall global trade, as governments designated fertilizers a crucial component of the food supply chain.</p><p>But freight rates began rising at the start of May, as marine fuel prices started to climb.</p><p>The weekly average price of 0.5pc sulphur bunker fuel in Singapore — widely viewed as a benchmark of marine fuel prices — began to rise from the end of April, supporting freight rates (<i>see chart</i>).</p><p>Freight rates are likely to continue rising into next week, with the Singapore bunker fuel price hitting a weekly high today, returning to mid-March levels.</p><p class="bylines">By Harry Minihan</p><p><div class="picture"><div><span class="pic_title">Fertilizer freight rates and marine fuel cost</span> <span class="units"></span></div><img src="https://argus-public-assets-us.s3.amazonaws.com/2020/06/19/fertilizerfreightratesandmarinefuelcost19062020015548.jpg"></div></p></article>
