Market Report

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...

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...

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...

As we approach 2021 Q2, supply shortages persist to new levels.  Suppliers continue to try to manage the demands of customers while coping with nut availability due to effects of storms and/or other weather-related issues; depending on the region—some mills are only able to operate at a fraction of their capacity while also having to contend with on-going consequences of COVID-19 on harvesting and production.  These shortages are expected to be an issue going into Q3 2021. The on-going effects of COVID have also culminated into a chaotic supply channel reaching to unprecedented heights of transit times and rates.  From...