A 30,000-tonne cargo ship has departed Nanjing for Morocco, establishing a new direct maritime link for a key fertilizer industry input.
A direct maritime route for liquid ammonia from China to Morocco has been established with the departure of the vessel Arlon, carrying 30,000 tonnes from Nanjing on October 13. This new route is significant for Morocco's fertilizer industry, particularly for producer OCP, which faces rising input costs and supply chain disruptions. The shipment's journey covers over 10,000 nautical miles around the Cape of Good Hope.
The shipment marks Jiangsu Andefu Energy Supply Chain’s first direct ammonia delivery to North Africa, though Morocco has previously imported substantial quantities from China. In May, Morocco received 51,050 tonnes of ammonia from China, making it the largest export destination that month. OCP has been redirecting ammonia purchases to markets east of the Suez Canal due to unfavorable prices and supplies elsewhere.
Geopolitical tensions and shipping disruptions have increased prices for ammonia and sulfur, impacting OCP's financial performance. The company's first-half revenue fell 7.3% to MAD 48.37 billion, with operating earnings declining. OCP is increasing production of triple superphosphate, which does not require ammonia, to mitigate nitrogen input costs, while also pursuing domestic green ammonia production by 2027.
Why it mattersMoroccan fertilizer producers are affected by the new direct shipping route for ammonia, a key industrial input, amidst rising costs and supply chain pressures.
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