December Market Update - A 2022 Q1 Outlook.....
This market update breaks down how we are closing out 2021 and how the coconut market is looking heading into 2022: Inventory should begin to stabilize. Coconut yields slowly increased into the latter half of 2021 Shipments are at 2-3 months transit times caused by delays due to weather related events, labour shortages, equipment shortages, port/railyard congestion Coconut production remained high through the rest of 2021 Reliable shipping will continue to be an issue as we approach Chinese New Year and is likely to continue through Q2 2022 Pricing remains high but stable. Some factors to consider for pricing: Slow recovery from...
September 2021
Coconut yields look to be promising for the rest of the year. However, logistical issues continue to get worse as overall export demand continues to increase and lack of space/equipment availability, congestion at all ports, rail yards persist. Even with ample supply at source, suppliers are now having to deal with production slow downs due to inability to move product from origin to market. Desiccated coconut and oil pricing looks to remain high but stable through the remainder of the year, barring any storms (Typhoon season May-November). Cost of freight continues to soar and transit times continue to hover around...
June 2021
After months of dealing with some of the largest DC supply issues experienced in the past two decades, it appears there’s light beginning to shine at the end of the tunnel. Over the last few weeks, crops have continued to rebound from the devastation they suffered from storms last fall and we expect production capacities in the Philippines will return to pre-typhoon conditions as crop yields improve over the coming months. Ocean freight continues to hold back supply recovery. Due to the on-going high export demand out of South East Asia, equipment shortages persist. Vessel space remains limited and congestion...
May 2021
As we continue through 2nd quarter, we are striving to meet the demands of the market. It has been an uphill battle that Klassic Coconut is conquering. The worldwide coconut shortage has continued to cause shipment delays. This shortage, along with Covid-19 restrictions continues to put a strain on all users. On top of the shortages, there is still much difficulty in securing shipping containers. This has continued to cause the shipping costs to remain at an all time high. The longer transit times also continue at 60-80 days which not so long ago were only 30-40 days. Due to...