Update End of October – Typhoons and Shipping

The more destructive part of the typhoon season has now begun in South East Asia, and with the effects of a La Nina weather pattern, it is forecast that there will also be increased rains in the coming months, this not only affects factories, farmers, and production but also causes delays to shipping routes across South East Asia.

With many ports in South East Asia and the Philippines already congested with freight, due to reduced capacity because of staffing shortages and freight prioritisation caused by COVID. We are encountering more and more ships rerouting and stuck in anchorages longer.

The usual container movement network has changed totally in 2020 and this has led to shortages of the right containers being in the right place at the right time, this is a global issue right now. (https://theloadstar.com/container-shortages-a-growing-problem-for-us-agriculture-shippers/  )

Summary 

Because of this disruption in the Philippines, we are now seeing prices increase on VCO and Desiccated Coconut.

Delays on the ground and shipping delays mean usual delivery expectations are not possible as we have seen shipping times go from 35 to over 50 days. And with typical contingency stocks depleted already, breaks in supply are very likely in the coming weeks and months.