International Fertilizer and Agriculture News - August 21

August 24, 2026

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Saudi phosphate giant Maaden is managing logistics and geopolitical challenges to export diammonium phosphate (DAP) via Oman. The company will ship 60,000 tonnes of DAP to India and 55,000 tonnes to East Africa from Duqm port. Previously reliant on Ras Al-Khair near the Strait of Hormuz, Maaden adapted its supply chains after the Strait saw reduced transit activity and mounting risks in the Red Sea. High logistics costs and war-risk premiums remain hurdles. Concurrently, the US claims increased energy shipments through the US-controlled southern channel of the Strait of Hormuz, though satellite data and vessel tracking suggest otherwise.

Saudi Arabia's Maaden to Export DAP via Oman

Saudi phosphate producer Maaden is scheduled to load a 60,000-tonne DAP cargo at Duqm, Oman, in late August or early September for delivery to India. The cargo is reportedly priced on a CFR basis. Maaden will also load 55,000 tonnes of DAP at Duqm that was sold to an East African buyer earlier this month, with the netback reportedly expected to recover to above USD 890-900/tonne. The company will need to truck DAP from its Ras Al-Khair facility in the Middle East Gulf to the port.

Maaden had previously exported cargoes from Ras Al-Khair through the Strait of Hormuz. However, after the Strait effectively closed in late February, it shifted cargoes to Saudi Arabia's Red Sea coast, mainly Yanbu. Eastbound exports from Saudi Red Sea ports must pass through the Bab el-Mandeb Strait or take the longer route around Africa via the Suez Canal. Houthi forces in Yemen issued threats against Saudi shipping in late July, increasing risks in the Red Sea, particularly around the Bab el-Mandeb area.

According to Argus, freight for a 60,000-tonne bulk DAP cargo from Saudi Red Sea ports to India is around USD 40/tonne, compared with around USD 20/tonne from Duqm to India. However, congestion at Omani ports has reportedly increased demurrage costs, while shipping in the region still requires substantial war-risk premiums.

In its latest quarterly results, Maaden revised its 2026 phosphate production target to the equivalent of 6.0-6.5 million tonnes of DAP, citing a shortage of sulfur and high logistics costs. It remains unclear whether Sabic, Saudi Arabia's other phosphate producer, also plans to load cargoes in Oman.

United States Steps Up Claims Over Energy Shipments Through the Strait of Hormuz

US officials continue to claim that large volumes of tankers are leaving the Strait of Hormuz through US-assisted transit routes, despite vessel-tracking and satellite information showing that traffic through the Strait has declined sharply. “The Strait is open now. A lot of ships are going through. We are getting a lot of oil out,” US President Donald Trump said at the White House on August 19.

However, vessel-information company TankerTrackers.com said on August 20 that, regardless of crude loading or transshipment location, only 5 million b/d was departing from the US naval blockade line. This was in response to US officials' claims that 10 million b/d of crude was transiting the Strait of Hormuz. The US blockade of Iranian ports is enforced outside the Strait of Hormuz, between the Gulf of Oman and the Arabian Sea. Therefore, TankerTrackers.com's figures likely include loadings from eastern ports in the UAE and Oman that lie outside the Strait itself.

US Energy Secretary Chris Wright claimed last week that an average of 9 million b/d of oil was leaving through the Strait of Hormuz, a figure far above available information. US Treasury Secretary Scott Bessent said in a CNBC interview on August 20: “We do control the Strait. You will see reports in the media of a lot of energy getting out, and I think we can continue to achieve that through the southern channel.”

Existing vessel-tracking and satellite data do not confirm US officials' claims that many tankers are transiting the Strait of Hormuz through the US-backed southern channel. Some tankers are passing through the Strait, but traditional vessel-tracking systems cannot detect them when vessels switch off their automatic identification systems. However, maritime security company Windward said that these transits are visible through satellite imagery, covering both the US-backed southern channel and the Iranian-controlled northern channel. These observable flows represent only a fraction of pre-war levels, while many vessels using the southern channel have been attacked by Iranian forces.

According to vessel-tracking company Vortexa, tanker flows through the Strait of Hormuz are expected to reach approximately 941,400 b/d during August 14-21, mainly consisting of shipments from Iraq and Saudi Arabia. Since the outbreak of the US-Iran war, most energy exports leaving the Middle East Gulf have moved through eastern ports in the UAE and Oman. Vortexa estimates that exports through Fujairah averaged around 2.06 million b/d during August 14-21, while exports through Sohar and Muscat in Oman averaged around 1.15 million b/d over the same period. Vessel-tracking data show that total departures from the Middle East Gulf region, including flows through Hormuz, were around 4 million b/d over the past week. The White House did not respond to Argus' request for comment on further details of US-supported tanker transit through the Strait of Hormuz.

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