The collapse of the U.S. dollar has boosted U.S. export shipments of all commodities and products to soaring levels, leading to congestion at all U.S. ports. Exporters are having a very difficult time in finding adequate space on vessels to ship their merchandise. Cotton exports are feeling this pinch. U.S. cotton export shipments only reached 257,000 running bales during week ending May 18, which was below expectations and compared to shipments of 374,760 running bales during the same period a year ago. In addition to these delays, shipping costs have skyrocketed as record oil prices impact fuel rates. International shipping lines around the world are rapidly increasing their rates. The daily gauge of ocean shipping rates, the Baltic Dry Index, surged to new highs last week, rising over 80 percent from the lows. These conditions are hampering the ability of merchandisers to reduce inventories. Any delay in shipments also further eats into profit margins due to the rapid rise in shipping rates.

Source: globecotnews