CATOOSA, Okla. — Tulsa Ports' boss takes a cautiously optimistic approach to the fallout of the Strait of Hormuz closure, but a fertilizer industry lobbyist said bad news is already on the way.
“The Port of Catoosa is mostly an ag port so we do a lot of export (of) soybeans and winter wheat, and then export of liquid fertilizer and import of dry granular fertilizer,” Tulsa Ports executive director David Yarbrough told 2 News via Zoom on March 16.
- Previous coverage>>> Tariffs expected to have little impact at Port of Catoosa
“If this closure goes long-term, you could see an effect on the prices of those commodities down the road," Yarbrough said. "I think right now, many of our distribution means have supplies on hand for the duration of the, let's say, the planting season at hand. So yeah, long term, it certainly could have more effect on commodities that we, routinely handle. But in the short term, we're not seeing it.”
WATCH>>> Extended interview with Tulsa Ports executive director on economic impact of Strait of Hormuz closure
Washington-based lobbyist firm The Fertilizer Institute certainly does see room for concern, however.
“The smallest hiccup in the river system could have a big impact. This is major,” CEO Corey Rosenbusch said.
Rosenbusch said he’s been in contact with fertilizer companies – a couple based at Tulsa Ports – nonstop since the strait was closed.
“As a matter of fact, we all agree that this particular conflict - closing down the Strait of Hormuz - is going to be ten times the impact that Russia invading Ukraine had. And we saw food prices increase by about 14 or 15% then. So I think we all should prepare ourselves - particularly if we're not getting the Strait open soon - for long-term impact on food prices.”
WATCH>>> Extended interview with The Fertilizer Institute's Corey Rosenbusch
Yarbrough said regardless of the supply, Tulsa Ports will remain among the cheaper sources of fertilizer for farmers thanks to proximity. The local labor force is stable as well, he added.
"World politics and economics notwithstanding, we're going to continue to do what we do," Yarbrough said. "Those things that will bring effect to those commodities down the road, we'll address it as it comes."
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