Market Update 25th June 2024

Price Updates

Coconut Oil

Europe: Seller prices slightly decreased to $1,395.50 per metric ton (MT) CIF from $1,401.25 per MT CIF the previous week.

Desiccated Coconut

On the other hand, the desiccated coconut market has remained stable. Prices in the USA, Europe, and other regions have held steady at 91.67¢ per pound FOB, maintaining the same level as last week, but still a significant increase from last year’s price of 76.67¢ per pound.

Shipping

The ongoing conflict in the Red Sea region has disrupted international shipping routes, leading to significantly longer transit times for the container shipping sector, according to a recent report from Project44, a supply chain visibility platform.

Carriers are now using alternative routes around Africa or through the Panama Canal, which has led to significantly longer transit times. The time it takes for containers to travel from China to Europe, Southeast Asia to Europe, and Southeast Asia to the US East Coast has increased by an average of 10-14 days.

The Suez Canal, one of the busiest sea routes worldwide, has experienced a significant decrease in traffic. An analysis of the May 2024 data revealed an astonishing 80% drop in passages compared to May 2023. The report indicates that this trend is unlikely to reverse soon, as the upcoming peak shipping season will not increase carriers using the route.

There has been an accumulation of container vessels outside Singapore, one of the world’s busiest maritime trade hubs. As a result, more cargo gets stuck in shipyards for extended periods. This situation leads to continuously increasing freight rates, with no clear end to the congestion.

The logjam that has been plaguing Singapore’s container port is also bringing forward this year’s peak season for the shipping sector.

As ever we suggest getting in your orders to avoid delays and factor in longer shipping times.