Venezuela urea shipping costs rose sharply after the US raid on 3 January, which led to the capture of President Nicolás Maduro. The sudden escalation created uncertainty in the freight market. However, exporters expect urea loadings and shipments to continue.
Several vessel owners sought a war-risk premium in the days following the raid. The operation involved helicopter and missile strikes in Caracas and nearby regions. Freight market sources say conditions have started to stabilise. Vessels are already scheduled to arrive for loading.
War-Risk Premium Pushes Venezuela Urea Shipping Costs Higher
The added war-risk premium increased pressure on exporters. Higher freight rates reduced margins for suppliers and traders. This impact became stronger for cargoes purchased on an FOB basis.
Venezuela urea shipping costs had already increased before the raid. Rising geopolitical risks and limited vessel availability pushed rates higher during December. The war-risk element only added to the burden.
Venezuelan Urea Prices Cut to Support Exports
To keep exports moving, Venezuelan producers lowered FOB urea prices in recent weeks. The decision came as US military presence in the region increased. Producers aimed to clear volumes despite existing sanctions.
Granular urea prices dropped to $300/t FOB Jose and below in the second half of December. This level marked a nearly $100/t discount compared with other suppliers serving Latin America. Argus assessed granular urea at $390–405/t FOB Nigeria on 2 January.
Ship Loadings Continue Despite High Freight Rates
Despite higher Venezuela urea shipping costs, exports continue. Vessel-tracking data from Kpler shows that the Centurion Juktas loaded urea at Jose port in mid-December. Another vessel, the Hongli 8, is due to arrive on 5 January.
Most Venezuelan urea shipments move to Brazil, with smaller volumes heading to Mexico and nearby markets.
Venezuela Urea Export Capacity and Market Outlook
Venezuela operates three major urea plants with a combined capacity of 2.2 million tonnes per year. These units produce both granular and prilled urea. However, export volumes remain unstable.
Argus Consulting estimates Venezuelan urea exports at just over 400,000 tonnes in 2025. This figure is well below the 700,000 tonnes exported during 2020–21. Higher Venezuela urea shipping costs may continue to limit exports in the near term.
