Global energy prices and shipping costs to rise - professor

15 September 2009 16:11  [Source: ICIS news]

WASHINGTON (ICIS news)--Energy prices and the cost of shipping bulk commodities like fertilizer will rise in the near term, an international studies professor told fertilizer producers on Tuesday. 

Michael Mandelbaum, a professor with the Johns Hopkins School of Advanced International Studies, provided the keynote address at the 2009 World Fertilizer Conference. The global recession seems to be ending in most parts of the world with recovery most robust in China, Mandelbaum said.

To aid the global recovery, Mandelbaum said countries other than the US need to step up their levels of consumption.

"The US is no longer the consumer of last resort," he said.

Mandelbaum predicted that rising energy costs in the near term, and the problem of climate change in the long term, were the major issues that would affect global economic recovery.

He said he believed that the US would place a tax on carbon emissions as a source of revenue to repay national debt as it is an easier source of revenue than raising income or corporate taxes.

Asia, Mandelbaum said, will lead the world out of the recession as growth in China and India was extremely good.

China and India would experience 6-8% growth for the foreseeable future, he said.

More than 700 fertilizer industry professionals attended the conference, which was sponsored by The Fertilizer Institute (TFI).

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By: Frank Zaworski
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