[ad_1]
The market role of the past week – the rates, the Jeopardy, the Brinkmanship – has emphasized the remarkable nature of an interconnected world that we take for granted.
There are many leading lines in this global trade war and the port of Duluth Superior is one. It is a logistics and an engineering miracle.
In the northernmost part of the United States, near the Border with Canada, there is nowhere hatred in the world as far in the interior as it does.
The sea is more than 2000 kilometers away, east, along the Great Mere-Ste Lawrence Seaway system, a international waterway with a shared US and Canada border.
On the other hand, large vessels are loaded and downloaded with products that make up the life blood of the global economy – iron ore for Canada, cement from Turkey, Algeria and shipping containers full of “Made in China” products for the US market.
Jayson Hron of the Duluth Seaway Port Authority
My guide is Jayson Hron of the Duluth Seaway Port Authority.
“A vessel sailing to Duluth through the sea voyage crosses the international border almost 30 times on that trip,” he tells me.
Duluth superior generates $ 1.6 billion (£ 1.2bn) a year, supports more than 7,000 jobs, and it’s nervous.
“It’s definitely a season of more unpredictability than we’ve seen over the past few years. Unpredictability is bad for ports and bad for supply chains,” says Mr. HRON.
Read more:
Why Trump finally cut
Is there a method of madness amid chaos in the market?
Rates mean friction and friction are bad for everyone. About 30 million tonnes of water -bearing cargo lanes move through the harbor every season and place them under the country’s top -20 ports in terms of cargo flow.
“Iron Ore is the King Cargo of the port per tonnage,” says Mr. HRON. “It makes up about half of our total of the water -borne tonnage each year. It is exploited 65 miles/104 km from the harbor on the iron range of Minnesota.”
👉 Listen to Sky News on your Podcast -Dapp 👈 daily
But not all the iron ore sail to domestic mills. Almost a third sailed to Canada in 2024, now subject to the levies of the trade war between the two countries.
“A fifth of our harbor’s overall water -borne tonnage was the Canadian trade in 2024, with the vast majority of IT exports from the US to Canada,” says Mr. HRON.
Geography combined with American and Canadian engineering over many decades has made this port a logistical wonder. From the sea, cargo can be imported and exported to and from the heart of the North American continent.
The federal Yoshino will transport US grain for Algeria
On the doctor, the federal Yoshino is prepared for her cargo. She will soon leave here with the American grain destined for Algeria.
The port stretches two states. The John A Blatnik Interstate Bridge connects Duluth with Superior and Minnesota with Wisconsin.
A network of roads and traces further connects the harbor with the country, and an hour after the southeast is the fields of gold in Wisconsin.
Trump suggests that farmers can sell more products at home
Last year, soybeans were the largest US exports to China, with a total of nearly $ 12.8 billion (£ 10bn) in trade.
Donald Trump suggested that US farmers could make up the difference by selling more of their products at home.
In March, he posted on social media: “To the big farmers of the United States: Get ready to start selling a lot of agricultural products in the United States. Rates will go on external product on April 2. To have fun!”
But there is no solid domestic market for soybeans – America’s second largest crop. Two fifths of exports go to China. No other export market comes close – 11% to Mexico and 9% to the EU – also now has the possible tariff barriers.
Local farmer tanner johnson
‘These fields are rows of gold’
Tanner Johnson is a local farmer and representative of the soybean industry. He regularly talks to politicians in Washington DC.
“They don’t hold much in your hand. But these fields are rows of gold, ‘he says.
Farmers across this country have overwhelmingly for Mr. Trump voted. Is there anxiety? Absolutely.
“I don’t want to put on an exact timeline when doors will close here. But in the short term, I think most farmers can handle it. Long term – a year, year plus – things will look very gloomy here,” says Mr. Johnson.
Here it seems mostly that they hold on to a confidence in Mr. Trump. There is still a belief that his wild negotiation will pay off with their livelihood. But these are high interests and with an uncertainty that no one needs.
[ad_2]
Source link
