World Perspectives

WPI Grain Transportation Report

Dry bulk freight rates cratered this week as China started its Golden Week holiday, which blanketed markets with calm and quiet. Pacific markets were especially dull and weaker, especially amid doubts about how China’s grain demand will play out after the holiday. China still has not booked U.S. grain cargoes for October-December and appears to be waiting for the Brazilian soybean harvest to arrive. As WPI wrote recently, China likely cannot avoid U.S. soybeans fully for the next four months, but will be able to purchase only minimal volumes.  Capesize markets started their decline on the last day of September and have since plunge lower following rumors of a ban from China on BHP iron ore purchases, and possibly FMG as well. The...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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