Market Update March 7th 2023
March 7, 2023
As Q1 2023 draws towards an end, what have we learnt about the market so…
Rates and Delays
The challenges of 2021 delays and high shipping prices have simply not gone away and have gotten worse.
The headline on Loadster.com reading “Asia-Europe spot rates head for $20,000 per feu as new China Covid crisis bites”, sums up the situation.
A lot of the issues stem from delays at ports in mainland China and COVID outbreaks there.
We are seeing shippers struggling to get space on ships and knock-on delays at hubs like Singapore.
Many local EU ports are running at capacity with no space for more containers with some smaller ports quickly being overwhelmed as shippers move to them, with Liverpool having major issues according to Loadster.com.
Most commentators suggest that delays will not get better till Christmas, and in our opinion, that may be optimistic.
Historic overcapacity has meant lower prices – we are now at full or near capacity for shipping lines meaning prices are going to stay high for the foreseeable future.
Production
Production is still about four to six weeks behind in the Philippines. Many factories, including Primex, have chosen to focus on catching up on old orders instead of selling new positions. This is because of the ongoing COVID restrictions in place in the Philippines, with staffing levels still a significant issue, hampering pushing up production on top of the reduced supply of raw coconuts into factories.
Positions are only available now from mid Q3 onwards, and that is heading into typhoon season when there is the possibility of other factors affecting supply.
What does all this mean from prices? – We are seeing spot desiccated relatively flat even off the back zero availability in Europe and there are no stocks built up and demand is at an all-time high meaning prices are liable to change.
Call us to discuss your requirements
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...