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Suez, Panama Canal Disruptions Drive up Freight Rates, Slow Ag Shipping

Shipping disruptions in the Red Sea due to attacks from Houthi rebels and the ongoing, drought-induced slowdown of goods through the Panama Canal are driving up freight costs and putting a focus on the vulnerabilities of key chokepoints in agricultural shipping lanes. Freight costs haven’t reached the levels seen during the worst of the pandemic-related supply chain snarls in 2021 and 2022, but the disruptions have forced the diversion of shipping to longer, slower routes or through alternate ports.

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