Global market opportunities for the United States
Transportation is a key factor when it comes to U.S. agricultural exports and now Vietnam has been afforded expanded access through a new shipping line.
Hanjin Shipping, South Korea’s largest shipping company, has announced the launch of a new direct service between Vietnam and the United States this month. According to a Hanjin news release, the new service will improve transit time and provide higher quality service with easier access to its customers in Vietnam.
As a country experiencing rapid growth and development, this new shipping route is welcomed by the Vietnamese and Americans alike. The opening of this line makes Hanjin the third major container line to offer this service to Vietnam.
U.S. Grains Council Regional Director in Southeast Asia Adel Yusupov said, “The launch of this line is certainly a favorable development for U.S. exporters of distiller’s dried grains with solubles (DDGS), corn and corn gluten meal into the market.” The availability of direct service from the United States to Vietnam will offer better risk management solutions for both U.S. exporters and Vietnamese buyers.
The government of Vietnam’s policies have created a favorable environment for the country’s commercial livestock sector, encouraging expansion of commercial livestock production. According to Yusupov, 2009 projected feed grains demand is approximately 12 million metric tons.
“We estimate demand will reach 20 million tons by 2015, given the current rate of livestock and feed industry growth,” said Yusupov. In this time of robust growth in the feedmilling industry, backed by escalating feed grains demand, the Council is optimistic this new shipping line will easily lend itself to increases in U.S. feed grains exports to Vietnam.