As we moved through Q2, we began to see an improvement in supply. Crops finally showed signs of recovery after the sustained low yields that affected the market throughout 2024 and into early 2025, largely due to the 2023/2024 El Niño season. Demand remains strong, and pricing continues to hover near historic highs.
Shipping faced some disruption during Q2 following the implementation of U.S. tariffs. This caused some shipment cancellations and blank sailings early in the quarter, followed by a sudden surge in demand and rate hikes toward the end of Q2. Thankfully, shipping conditions now appear to be stabilizing, and we are seeing some rate reductions for Q3. Current transit times are averaging 40–60 days.
Looking Ahead – What to Expect in Q3 2025:
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Supply: Mills have increased production capacity, and supply continues to improve. However, a backlog of orders from the shortages in 2024 is still being worked through. Some intermittent shortages may continue into Q4.
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Stabilizing Prices: We are cautiously optimistic about more stable supply and the potential for moderate price relief by Q4.
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Typhoon Season: We are now in the Philippines’ typhoon season (May–December). Weather disruptions could temporarily affect supply and delay further improvements. We’ll continue to monitor this closely and keep you informed.
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Market Volatility: Ongoing geopolitical tensions and the potential reimplementation of tariffs continue to create uncertainty. These factors may impact both market dynamics and shipping logistics.
We appreciate your continued partnership and patience as we navigate these challenges. Our team is committed to keeping you updated and ensuring the most consistent service possible.