Market Update March 7th 2023
March 7, 2023
As Q1 2023 draws towards an end, what have we learnt about the market so…
Shipping and supplies continue to be highly challenging into Q2.
In 2021, Manila to Felixstowe shipping times has averaged 73 days, Southampton 59 days, Stockholm up to 69 days and Hamburg 41 days for shipments.
Much is this is down to port congestion around the world, especially in the UK – this was headline news recently, but the issue has not gone away; we are seeing ships at anchor for weeks at a time waiting to get a berth to unload.
These issues have several causes – COVID, Brexit and import/export imbalances. COVID and Brexit issues should get better over time; however, the imbalances will take a lot longer to begin to balance out.
Delays are just one part of the current challenge – container availability and shipping costs are still a significant issue
The current shipping rates are up to seven times higher than 12 months ago, with many companies delaying shipments hoping that prices would drop back to more acceptable levels after the Chinese New Year – this has not happened. Container rates are going down, but not significantly; the Drewry’s composite World Container index decreased just 1.7% last week.
Production in the Philippines continues at the same rates as previous months – we are hearing of localised shortages of raw materials that are causing production breaks; this means that delays are still running at least two months and not liable to catch up for the foreseeable future.
We have heard of spot prices for desiccated of over $4,000, which is a record high, with availability at a record low.
There are no backup stores available from UK or EU suppliers, as everyone plays catchup from 2020.
Right now it’s a very tough marketplace, we recommend people get orders in as soon as they can to avoid being without later in the year, as we don’t think things are going to improve in the short or medium term.
Call us to discuss.
Why not subscribe to receive the latest market news straight to your inbox to clinch the best deal!
March 7, 2023
As Q1 2023 draws towards an end, what have we learnt about the market so…
January 30, 2023
We wanted to let you know that one of our client's email accounts has recently…
January 10, 2023
So, what does 2023 hold for desiccated coconut and coconut oil prices, along with prospect…
December 9, 2022
2022 has been a bumpy year for edible oils and desiccated coconut. Coconut oil hit…
November 9, 2022
Uncertain Times Palm oil has been trading slightly weaker recently, with continued China lockdowns being…
November 1, 2022
The Philippines is recovering from tropical storm Nalgae, which caused deadly flooding over the weekend.…
If you require technical information about our products, then please login here to access the most up to date information...
Let's take a look at this...