Tension in the Strait of Hormuz threatens fertilizer trade and raises risks for Colombian agriculture
A third of global fertilizer maritime trade passes through the Strait of Hormuz. Photo: iStock
TL;DR
- US-Iran conflict escalates, raising alarms for foreign trade and global agriculture.
- Tensions in the Strait of Hormuz, a crucial maritime passage, disrupt supply chains, particularly for fertilizers.
- Approximately one-third of global fertilizer maritime trade passes through the Strait of Hormuz.
- Colombia depends on fertilizer imports, with potential impacts on agricultural production costs.
- The conflict could lead to increased prices for oil, gas, and urea, further pressuring production costs.
- Disruptions in maritime traffic are increasing logistics costs, including freight rates and insurance premiums.
- Inventories may cushion immediate impacts in Colombia, but prolonged tension could affect planting seasons starting March.
- The duration of the conflict and US actions to prevent blockades will influence price fluctuations.