By TIM ALEXANDER
Illinois Correspondent

CHICAGO, Ill. — Soyatech, LLC, an internationally recognized publishing, research and consulting firm devoted to sustainable development in the soybean, oilseed, agribusiness, food and biofuel industries, will host “Global Soybean & Grain Transport 2008: Opportunities and Challenges in Containerized Shipping” from Nov. 5-7 at the Drake Hotel in downtown Chicago.

The conference, presented by the U.S. Soybean Export Council, American Soybean Assoc. and the United Soybean Board, will explore the growing trend of transporting agricultural products to overseas markets via containers.

The conference will bring together agriculture and soybean officials, freight and logistics companies, steam ship operators, USDA trade regulators and economists and potential investors to establish a clear understanding of the economics and regulatory issues involved in containerized shipping, said Soyatech content director Joe Jordan.

“Right now, shippers have two major questions: container availability and cost. We want shippers to be able to talk directly with steam ship line representatives,” he said.

A “who’s who” of the shipping and receiving and ag industries has been assembled for the conference. While speakers are still being added, those confirmed include Peter Friedmann, executive director of the Ag Transportation Coalition (ATC); Mike Jones, manager of bulk commodities for the Virginia Port Authority; Jeff Mailhiot, senior group manager for TSC Container Freight; and Lynn Clarkson, president of Clarkson Grain.

Illinois Lieutenant Governor Patrick Quinn is the conference’s featured speaker. Topics to be covered include: competition for container and vessel space among agricultural commodities and other products; current trends in container availability and prices; regulatory issues and framework for containerized shipping; infrastructure issues, including the impact of expanded intermodal and port facilities on various aspects of the industry; and recent trends in shipping U.S. soybeans and grain.

The conference’s focus has shifted slightly, with special seminars being added to address the effects of the current world financial crisis on the containerized shipping industry. While plans were still in development at press time, speakers will address how the crisis will affect shipping in both the near-and-medium term.

“We’ll look at how it affects operational liquidity – short-term credit that is needed just to keep trade going,” said Jordan. “We’ll also hold a discussion on how a longer-term squeeze in credit will affect things like the building of new vessels, for example. It will focus on infrastructure-related credit issues.”

Friedmann will serve as moderator for the conference’s Governmental Regulations and Oversight panel and will also sit on the Container Availability panel. He said the conference is necessary to bring all groups together as U.S. agriculture continues to export more products via container.

“For the past 10 years agriculture has moved increasingly toward containerized shipping, largely because the Asian buyers want the products in segregated amounts rather than bulk,” Friedmann explained.

“This means an almost totally different distribution system will need to be put into place. By far, most ag exports now move by container.”

He said while the heavy weight of containerized agricultural products is one problem that needs to be smoothed out with steam ship operators, the biggest stumbling block is a lack of containers in the Midwest due to competition with other commodities.

In addition, shippers and producers in close proximity to major distribution hubs such as Chicago, Memphis and Dallas have an easier time securing containers for export than those in rural areas.
“Imported products are offloaded and then you have an empty container that can be loaded with U.S. agricultural products,” Friedmann said. “The further you are located from major distribution centers, the more difficult it becomes to secure a container.

“Agriculture is creating competition with those seeking containers for other commodities that have been moved by container for several decades. That will make for an interesting discussion at the conference.”

For more information, visit http://
events.soyatech.com/conference/GSGT.htm or call 800-424-SOYA (7692).