The US and UK conducted strikes in response to Houthi attacks in the region, and the escalating conflict in the Red Sea, particularly around the Suez Canal, has heightened shipping risks, impacting Australia's agriculture industry. Australian live cattle and sheep exports face disruptions, with vessels rerouted due to increased risk factors. Australian beef exporters struggle with container and shipping availability, as some companies avoid the Suez Canal, opting for longer routes.
On the other hand, although canola exports may be affected, Australian wheat and barley could gain competitiveness in certain markets such as in Asia-Pacific, the Middle East and east Africa since competitors from Russia, Ukraine, and the EU will be challenged to reach to these regions, as they often pass through the Suez Canal. However, the rerouting of shipments increases voyage times and shipping costs, affecting both exporters and importers in Australia.
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