Vietnam - Demand for pepper in the US market increased sharply

 

Demand for pepper in the US market increased sharply

Posted onJune 23, 2024by VPA

June 23

The amount of US pepper imports increased by 24.5% over the same period last year. Of which, Vietnam is the main supplier, accounting for 76% of the market share.

According to the Vietnam Pepper and Spice Association (VPSA), in the first 5 months of the year, Vietnam  exported   a total of 114,424 tons of pepper of all kinds with a turnover of 493.1 million USD, down 13.2%. In terms of volume, however, export turnover increased by 20.6% over the same period last year.

In particular, the US surpassed China to return to the leading position in Vietnam's largest pepper export market with a volume of 30,466 tons, accounting for 26.6% of the market share and an increase of 44.4% over the same period. period.

According to data from the US International Trade Commission (USITC),  the country's demand for pepper  imports  is increasing strongly again after two consecutive years of decline due to the impact of  inflation   and rising interest rates.

By the end of April this year, the US imported 27,872 tons of pepper from the world worth 130.53 million USD, up 24.5% in volume and 24.2% in value compared to the same period last year. .

In April alone, the amount of imported pepper was 8,007 tons, up 39% over the previous month and up 32.8% over the same period in 2023.

 Source: Hoang Hiep compiled data from USITC 

Notably, Vietnam continued to be the largest pepper supplier to the US in the first 4 months of the year, accounting for 76% of the market share with a volume of 21,259 tons, worth more than 97.3 million USD, an increase of 19.2% in terms of sales. quantity and increased 21.5% in value compared to the same period last year.

In addition, the US also increased pepper imports from other markets such as: India reaching 2,258 tons, an increase of 20.8%; Indonesia reached 2,233 tons, an increase of 133.6%; Brazil reached 1,106 tons, an increase of 59.2%.

 Vietnam's average export price of pepper  to the US in the first 4 months of the year reached 4,576 USD/ton, up 1.9% over the same period last year. At the same time, it is higher than Brazil's price of 4,017 USD/ton, but lower than 4,933 USD/ton of Indonesia and 5,000 USD/ton of India.

Vietnamese pepper holds a large market share in the US thanks to its good price and increasingly high quality, making it popular in this market. Vietnam's pepper industry is also highly appreciated for its processing capacity with the rate of processed goods accounting for about 30% of total export turnover.

In terms of consumption demand, the US is currently the world's largest pepper importer. In the past 3 years, the US has spent 320 - 440 million USD/year to import this spice, equivalent to 19 - 20% of global pepper trade.

 Source: Hoang Hiep compiled data from USITC 

In recent times, the global pepper supply has decreased while demand has increased from the US and some other major markets, pushing the price of this commodity to its highest level in the past 8 years.

In Vietnam's domestic market, as of June 21, black pepper prices were traded at 156,000 - 160,000 VND/kg, nearly doubling compared to the beginning of the year and 2.2 times higher than the same period last year.

However, this price has decreased by about 20,000 VND/kg compared to the peak of 180,000 VND/kg reached on June 11.

The Import-Export Department (Ministry of Industry and Trade) forecasts that pepper prices will continue to increase in the near future, but the growth rate will slow down. There is currently a shortage of pepper supply while demand has recovered strongly from major markets such as Europe, the US and China. This year's pepper output from Vietnam and many major producing countries is forecast to decline, due to the impact of the El Nino phenomenon and the decline in cultivated area.

According to the Vietnam Pepper and Spice Association, the prolonged drought weather phenomenon has led to a 10% decrease in Vietnam's pepper output this year to about 170,000 tons compared to last year, the lowest level in 5 years. via.

Meanwhile, just through the first 5 months of the year, Vietnam has exported over 114,000 tons, equivalent to 67% of output. This shows that the supply for export is not much left.

“Although pepper prices are forecast to continue to increase in the near future, the management agency recommends not massively expanding planting areas but focusing on investing and taking care of intensive farming to grow pepper. sustainable and stable development,” said the Import-Export Department.

 

Pepper market on June 21, 2024: Slight increase

Posted onJune 21, 2024by VPA

21
Jun

Pepper price today June 21, 2024 only increased by 1,000 VND in Ba Ria Vung Tau. Currently, domestic pepper prices are trading around 155,000 - 160,000 VND/kg.

Pepper prices  today June 21 in the world

Around the world, the pepper market on June 21 turned down in Indonesia but remained unchanged in other countries.

Accordingly, the price of Lampung black pepper in Indonesia decreased by 24 USD; about 7,790 USD/ton. The price of Muntok white pepper in this country decreased by 31 USD; at 9,713 USD/ton.

Malaysia's Kuching ASTA black pepper price is anchored at 7,500 USD/ton; This country's ASTA white pepper costs 8,800 USD/ton.

For the Brazilian market, the price of ASTA 570 black pepper is anchored at 7,600 USD/ton.

In Vietnam, the export price of 500 g/l black pepper is trading at 7,800 USD/ton; The 550 g/l type is kept at 8,000 USD/ton. The export price of white pepper is anchored at 12,000 USD/ton.

Pepper type	Price	Change
Lampung black pepper (Indonesia)	7,814	-0.31%
Muntok white pepper	9,744	-0.32%
Brazilian black pepper ASTA 570	7,600	–
Kuching black pepper (Malaysia) ASTA	7,500	–
ASTA Malaysian white pepper	8,800	–
Black pepper type 500 g/l Vietnam	7,300	–
Black pepper type 550 g/l Vietnam	7,800	–
Vietnamese white pepper	11,300	–

Latest world pepper price list on June 21, 2024. Unit: USD/ton

Thus, world pepper prices on June 21, 2024 decreased slightly in Indonesia compared to yesterday.

Pepper prices today  June 21 in the country

Domestically, the pepper market on June 21 was less volatile than yesterday.

Specifically, Dak Lak still purchases pepper at a price of 160,000 VND/kg;

Similarly, Dak Nong pepper price today maintained trading at 160,000 VND/kg;

Gia Lai pepper price today moved sideways, remaining at 156,000 VND/kg;

Currently, Dong Nai traders buy pepper at a price of 156,000 VND/kg;

Increasing 1,000 VND, Ba Ria - Vung Tau pepper price increased to 157,000 VND/kg;

Binh Phuoc traders are still trading pepper at 155,000 VND/kg.

Province	Price	Up and down
Dak Lak	160,000	–
Dak Nong	160,000	–
Gia Lai	156,000	–
Dong Nai	156,000	–
BA Ria Vung Tau	157,000	1,000
Binh Phuoc	155,000	–

Latest domestic pepper price list dated June 21, 2024. Unit: VND/kg

Domestic pepper prices   today  mainly went sideways, only Ba Ria Vung Tau increased slightly by 1,000 VND.

After the first 16 days of June 2024, Vietnam exported 16,211 tons of pepper. Of which, black pepper reached 14,347 tons, and white pepper reached 1,864 tons. Total export turnover reached 77.8 million USD.

It is expected that Vietnam will export 30,000 tons of pepper in June, bringing the total export volume in the first 6 months of 2024 to 140 - 144 thousand tons, the lowest output level in the past 5 years.

There are currently no official statistics on pepper output in the past season from management agencies, associations, and businesses. But with an average estimate of 170 thousand tons, there is not much pepper left for export until the end of the year.

Businesses increased imports but did not increase significantly, in the context of scarce global supply due to low output in many countries.

According to experts, the pepper growing area is increasingly shrinking as farmers change crops. The supply of pepper on the global market is nearly 100,000 tons short of demand. Because businesses lack goods for export, they increase purchases in a short period of time, causing prices to increase dramatically.

The current "hot" increase in pepper is partly due to Chinese traders starting to buy pepper again after a long absence.

Thus, the domestic pepper price on June 21, 2024 is trading around 155,000 - 160,000 VND/kg.

According to Nongnghiep.vn

 

#pimienta #poivre #Pfeffer #pepe #pimenta #perets #胡椒 #胡椒 #فلفل #후추 #Vinaprogroup #export #import #pepper

Pepper market on June 19, 2024

 

Pepper market on June 19, 2024: Decreasing in the provinces

Posted onJune 19, 2024by VPA

June 19

Pepper price today June 19 is in the range of 157,000 - 159,000 VND/kg, down compared to yesterday (June 18). The International Pepper Community kept pepper prices in other countries unchanged but reduced in Brazil.

As noted by Ba Ria - Vung Tau newspaper, this year's pepper crop, Mr. Hoang Van Quan (Phu Tai hamlet, Hoa Hiep commune, Xuyen Moc district) harvested 10 tons of pepper, down 3 tons compared to last year, but still profitable. quite because pepper prices have increased. About a month ago, the selling price was 100,000 VND/kg. After deducting costs, he earned a profit of 400-500 million VND, a profit he only got after more than 5 years.

As for Ms. Nguyen Thi Thuy Trang (in Hoa Hiep commune, Xuyen Moc district) does not expand the area but focuses on taking care of the existing pepper garden of 4.3 hectares. According to Ms. Trang, pepper prices are at their highest level in the past 7 years, helping growers have a good source of income.

According to the agricultural sector, the whole province has more than 10,500 hectares of pepper, most of which is in the business stage, concentrated mainly in Chau Duc and Xuyen Moc districts.

The rush to plant pepper when prices increase is no longer the case. Instead, farmers focus on taking care of and improving their gardens better. Some households plant new trees on dead and old tree areas and cultivate organically for sustainable development.

Meanwhile, according to experts, the current price of pepper is still not attractive for people to grow again. Because durian and coffee are at very good prices; The lands where durian and coffee are grown are also the same areas where pepper was grown in the past.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 6,418 USD/ton; Brazilian black pepper price ASTA 570 is at 7,600 USD/ton, down 300 USD (3.95%); Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price 8,377 USD/ton; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 7,800 USD/ton for 500 g/l type; type 550 g/l at 8,000 USD/ton; White pepper price is at 12,000 USD/ton. IPC kept pepper prices unchanged in other countries but reduced in Brazil.

According to KTĐT.vn

 

Pepper market June 17, 2024: Pepper prices increased again

Posted onJune 17, 2024by VPA

June 17

Pepper price today June 17 is in the range of 160,000 - 161,000 VND/kg, an increase of 3,000 VND compared to last weekend. Currently, the inventory level of traders is assessed at a low level. In particular, some dealers have faced shortages and were unable to buy back when the market increased rapidly.

In the latest report, PTEXIM Corp assessed that the current inventory level of intermediaries, an important link connecting farmers with exporters, is assessed at a low level. In particular, some dealers have faced shortages when they sold out and were unable to buy back when the market increased rapidly. The company said that the above reason causes prices to escalate further.

The average inventory in the hands of intermediaries is very small, the lowest in recent years, due to the increasingly expensive capital cost of black pepper. Purchasing and storing inventory becomes difficult and requires large capital, leading to low inventory levels.

PTEXIM Corp further informed that with Brazil forecast to have a crop failure and slow harvest due to prolonged harsh weather, the price of black pepper at SPOT spot warehouse continuously increased sharply. This leaves many manufacturers unprepared for the year's production needs.

Many importers/processors expect that the supply of raw materials will be supplemented from Brazil and Indonesia, leading to a shortage of raw materials for production because Brazil/Indonesia hardly offers them for sale, causing prices to continuously skyrocket in recent times. via.

Brazilian pepper prices increased sharply, according to reports from Brazilian exporters, the main reason being mass crop failures in Espirito Santom state, the country's main pepper production area.

Currently, experts say that the shipping market is in a more difficult crisis than during Covid-19. In fact, due to the lack of ships, freight prices suddenly increased again, 2 - 2.5 times higher than 2 months ago. The reason for the impact on freight rates is the impact of the ongoing Red Sea crisis in the Panama Canal, and signs of escalation in the US-China trade war.

In addition to supply and demand factors, the above factors are causing commodity prices to increase, setting new floors, including pepper.

Commenting on pepper prices this week, experts say that they are still increasing steadily in all countries, but the domestic market continues to adjust, depending heavily on speculation.

According to KTĐT.vn

Pepper market update 17th June 2024 – Week 24

 

 

•        Last week, the pepper price experienced dizzying fluctuations. Prices surged and dropped significantly within hours. There were days when the market increased by up to 8%, but then decreased by 7-9% in just one day.

 

•        It can be said that the market last week was chaotic, with many moments when there were no reference prices.

 

•        At the end of the week, prices had unchanged and kept the same level 174.000vnd.

 

It is important to note that in June, Vietnam is expected to export 26-30,000 tons of pepper, bringing the total exported quantity in the first 6 months to reach between 140,424 tons and 144,424 tons. This is an impressive export figure as Vietnam’s crop is forecasted to be the lowest in production in the past 5 years.

 

Furthermore, Vietnam is currently the largest pepper-producing country, almost the only affordable supplier with a large quantity in the global pepper market. Other countries like Brazil and Indonesia are forecasted to have poor crops, with the upcoming crop season starting around August. Therefore, considering stockpiling to ensure production orders is a necessary consideration, despite the increasing capital costs and rising transportation fees in recent times.

 

Please see the REPORT FILE & FULL QUOTATION LIST by click to download.

https://drive.google.com/file/d/12fGjf3EKP46lnH5qOT5DsbQzIPp40GCV/view?usp=sharing

Pepper market June 14, 2024

 

Pepper market June 14, 2024: Prices decreased again

Posted onJune 14, 2024by VPA

June 14

Pepper price today June 14 is in the range of 156,000 - 158,000 VND/kg, down slightly compared to yesterday. The International Pepper Community slightly reduced Brazilian pepper, while it increased again in Indonesia.

An agricultural product business in Dak Nong said that at the beginning of the harvest season, many companies predicted that pepper prices this year would decrease. However, the reality was opposite to expectations, pepper prices increased even higher, so companies had to step up purchasing.

According to assessment, the market increased mainly due to reduced supply both domestically and internationally. Many years ago, low pepper prices led to little investment and care by farmers, so total output also decreased. There are also other influencing factors such as drought and diseases on pepper.

Mr. Le Anh Son - Director of Binh Minh Cooperative in Ea Po commune (Cu Jut district, Dak Nong province) said that with the current high lake price, farmers are the ones who benefit the most. Many farmers in Dak Nong are expecting pepper prices to reach about 200,000 VND/kg like in the "golden age" about 5-7 years ago.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 6,452 USD/ton, an increase of 0.06%; Brazilian black pepper price ASTA 570 was at 8,200 USD/ton, down 3.66%; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 8,422 USD/ton, up 0.07%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 7,600 USD/ton for 500 g/l type; type 550 g/l at 8,000 USD/ton; White pepper price is at 11,300 USD/ton. The International Pepper Community slightly reduced Brazilian pepper, while it increased again in Indonesia.

According to KTĐT

Freight - reason why shipping rates are increasing

 

'Caught sick' the reason why shipping rates are increasing day by day

Posted onJune 14, 2024by VPA

June 14

Container shipping costs have increased almost vertically, causing export businesses to worry about delivery schedules as well as shrinking profit margins.

Freight costs increased dramatically

Mr. Vincent Clerc - CEO of shipping giant Maersk (Denmark) - said that container shipping costs increased 'almost vertically' in the past month. Specifically, in the week ending June 6, Drewry's container freight index increased 12% to 4,716 USD per FEU (40ft container), an increase of 181% over the same period and 232% higher than the previous year. average level in 2019.

For example, freight rates on the Shanghai to Genoa route reached $6,664 per FEU, up 213% from a year ago. Additionally, freight rates on the Shanghai to New York route recently reached $6,463 per FEU, up about 142% over the same period, while rates on the Shanghai to Los Angeles route recently reached $5,975 per FEU, up about 215% over the same period last year.

According to Vietnam Maritime Administration, statistics from the beginning of June 2024, the price of shipping container goods by sea to European countries and the United States is trending up sharply, the world container index increased by 12% to 4,716. USD/40 feet container in the past week.

According to data from the international logistics exchange Phaata, freight rates for the City route. Ho Chi Minh trips to the United States are increasing sharply. Meanwhile, Drewry's world container index (WCI) increased 12% to $4,716 per 40-foot container in the week from May 30 to June 6 and increased 181% over the same period last year. From Shanghai to Genoa, rates increased 17% at $6,664 per 40-foot container. Freight rates from Shanghai to New York increased 6% to $7,214 per 40-foot container.

Mr. Truong Dinh Hoe - General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) - informed that the world's vital shipping routes from the Red Sea to the Gulf of Aden are heavily affected by conflict. Geopolitics are escalating in the Middle East. For some time now, the Mandab Strait - one of the busiest maritime routes in the world with the capacity to handle about 15% of global maritime trade value - has been significantly disrupted due to attacks by Houthi rebels. on cargo ships in recent times. The majority of cargo ships still avoid moving into the Red Sea area, with the number of daily movements down by two-thirds compared to the same period last year.

Drought conditions in the Panama Canal – which handles 5% of global maritime trade – have gradually improved as the number of daily transits has increased. However, shipping capacity through the Panama Canal is still lower than the usual daily average of 34 - 40 transits and cargo traffic is expected to return by 2025. Recently, a situation occurred again. Congestion in Singapore leads to concerns about supply chain crises and rising commodity prices.

"Congestion in Singapore stems from many factors, from the tendency to change shipping routes when the Red Sea is unstable to the rush to transport goods before the new tariffs imposed by the United States on Chinese goods take effect." , Mr. Truong Dinh Hoe shared.

Many leading industry experts say that the United States plans to impose strong tariffs on many types of Chinese goods from August 2024, causing Chinese exporters to boost exports ahead of schedule. Therefore, many Chinese exporters are paying higher prices to shipping lines to ensure space on ships bound for the United States and Europe.

Chinese businesses are willing to pay up to 1,000 USD for 1 slot on the ship, while Vietnam only pays 600 USD. Therefore, shipping lines have almost given priority to China, reducing trips with countries including Vietnam, leading to the current situation of huge price increases.

Mr. Do Ngoc Tai - General Director of Tai Kim Anh Seafood Processing Joint Stock Company - informed that shipping rates have increased dramatically by 40% since May due to the war in the Middle East and China collecting empty containers to reserve for export. for the United States before the new tax deadline. Similarly, with the EU market, shipping rates increased dramatically by 60% due to detours and China collecting empty containers for export to the United States.

In the pepper and spice industry, Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association - informed that pepper export businesses are facing difficulties when pepper prices increase. Unable to buy goods, along with that, transportation costs increase. The reason may be because the Chinese side collects empty containers for export.

Narrowing business profit margins

Some export businesses reported that the cost of a container to the US market has increased from nearly 3,000 USD to nearly 7,400 USD; Peak season fees every year are the highest at about 300 USD/container, now the shipping company reported an increase to 1,000 USD/container... Shipping rates fluctuate every day. Shipping companies also quote prices weekly instead of 15 - 30 days as before.

Meanwhile, Vietnamese businesses have almost no choice because in terms of international shipping, Vietnam's shipping fleet is currently only responsible for transporting about 10% of the market share, mainly transporting the following routes: China, Japan, Korea and Southeast Asia. Vietnam's export activities to major markets such as the United States, EU... depend on foreign shipping lines.

Notably, according to Mr. Vincent Clerc, with the above sharp increase in prices, it may motivate more retailers in the West to find ways to transport goods for the Christmas shopping season in large volumes. earlier and earlier than usual. This could put additional pressure on the global supply chain. The sooner retailers replenish inventory, the more they will fall into a dilemma. The more they try to request early shipments to avoid late delivery, the more delays they see.

Mr. Nguyen Hoai Nam - Deputy General Secretary of VASEP - said that shipping costs are increasing again, causing difficulties for the fisheries industry. Because businesses in the industry mainly operate export activities, each year they use more than 1 million containers, but currently, it is very difficult to order containers.

Meanwhile, Mr. Ho Quoc Luc - Chairman of the Board of Directors of Sao Ta Food Joint Stock Company - said that sea freight rates to North America and Western Europe increased by 100% compared to the off-peak period, while other routes Going to Japan, Korea, Australia has more stable prices. Increasing fares will reduce business profits.

Faced with the above situation, the Vietnam Maritime Administration has just requested the Maritime Port Authorities to coordinate with the Maritime Sub-Departments and relevant authorities, associations and units to strengthen supervision of business enterprises. sea ​​transport, providing container freight services by sea, listing prices and surcharges in addition to the price of container freight services by sea (prices and surcharges in addition to prices); Complying with the effectiveness of price postings and surcharges in addition to prices according to the provisions of Decree No. 146 of the Government.

Units are assigned to monitor and report to the Department when there is congestion at seaports, as well as when there is an imbalance in container containers serving import and export goods.

Vietnam Maritime Branch in City. Ho Chi Minh was assigned to preside over and coordinate with the Maritime Branch in Hai Phong and the Maritime Port Authorities in the city. Ho Chi Minh, Vung Tau, Hai Phong monitor statistics on price increases/decreases and surcharges in addition to prices for a number of shipping lines that provide container shipping services to Europe and the United States, including including: Maersk, MSC, CMA-CGM, ONE, Hapag-Lloyd, Evergreen, HMM, COSCO, Yang Ming, OOCL...

At the same time, proactively work with representatives of the above shipping lines in Vietnam and relevant units to grasp the causes of service price increases/decreases when there are signs of sharp increases/decreases and other related issues. to the shipping company.

According to Congthuong.vn

Pepper market June 12, 2024

 

Pepper market June 12, 2024: export and domestic pepper prices dropped sharply

Posted onJune 12, 2024by VPA

12
Jun

Pepper price today June 12 is in the range of 155,000 - 160,000 VND/kg. After a series of consecutive increases, the official domestic pepper price dropped sharply by 20,000-25,000 VND/kg. The International Pepper Community sharply increased Vietnam's pepper export prices while slightly decreasing Indonesian pepper prices.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 6,449 USD/ton, down 0.03%; Brazilian black pepper price ASTA 570 is at 8,500 USD/ton; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 8,417 USD/ton, down 0.04%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 7,300 USD/ton for 500 g/l type; type 550 g/l at 7,800 USD/ton, up 16.25%; White pepper price was at 10,700 USD/ton, an increase of 20.83%. The International Pepper Community sharply increased Vietnam's pepper export prices while slightly decreasing Indonesian pepper prices.

Pepper prices in the world and in Vietnam increased sharply because Brazil and Vietnam, the two countries that determine global supply, are having a decline in output due to El Nino weather causing drought. Supply in Indonesia, India, Malaysia, and Sri Lanka is also limited.

According to assessments, in the long term in the next 3-5 years, the amount of pepper produced cannot meet the world's consumer demand.

Factors other than supply and demand pushing pepper to skyrocket include shipping costs. The global container index, representing spot container freight rates on major international shipping routes, has returned to the peak of the Covid-19 epidemic.

Shipping market research firm Linerlytica said that ports in Southeast Asia are becoming the "most serious bottleneck" for world maritime transport activities, when 26% of global container capacity is stuck in this area.

This has been implanted in product prices, causing goods to increase in recent times. Besides, domestic speculation activities are also considered one of the main causes of the current price increase. The market is also driven by increasing purchasing power each month from China.

According to KTĐT.vn

Pepper market on June 11, 2024

 

BREAKING NEWS , Domestic news , NEWS

Pepper market on June 11, 2024: Strong increase reaching over 175,000 VND/kg

Posted onJune 11, 2024by VPA

11
Jun

Pepper price today June 11 is in the range of 175,000 - 176,000 VND/kg. The official pepper price exceeded the mark of 170,000 VND/kg, a price that no one could have thought of when entering this year's harvest. Another reason causing pepper prices to increase is that sea transportation is increasingly expensive.

The rapid increase in pepper prices makes farmers very excited, along with other agricultural products such as coffee and durian also increasing in price, thereby improving people's lives.

However, the planting of new pepper has not yet been widely recorded, because the cost of planting new pepper has become more expensive than before. Besides, there are other agricultural crops that bring better profits than black pepper such as coffee, cocoa, and durian.

Another reason why pepper prices have increased in addition to supply and demand factors in recent times is that sea transportation is increasingly expensive.

Last week, a series of major shipping lines based in Taiwan (China) such as Evergreen, Yang Ming and Wan Hai predicted that congestion at ports in Asia would not ease in the short term, so freight rates Container shipping will remain anchored until the third quarter of 2024.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 6,451 USD/ton, an increase of 12.65%; Brazilian black pepper price ASTA 570 was at 8,500 USD/ton, up 3.53%; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 8,420 USD/ton, an increase of 11.82%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 6,500 USD/ton for 500 g/l type; type 550 g/l at 6,700 USD/ton; White pepper price is at 9,500 USD/ton. The International Pepper Community sharply increased Indonesian and Brazilian pepper prices earlier this week.

According to KTĐT.vn

Seaport congestion is widespread in Asia

 

Seaport congestion is widespread in Asia, container freight rates are expected to remain high until the third quarter of 2024

Posted onJune 10, 2024by VPA

10
Jun

Singapore Port - the world's second largest container port - is experiencing more serious congestion than during the peak period of the COVID-19 pandemic. This is causing a knock-on impact on a series of seaports in the region.

 A series of major ports in Asia and Europe are experiencing serious congestion with a large number of ships in port and waiting to dock (as of June 2). (Source: Linerlytica)

Singapore Port - the world's second largest container port - is experiencing sudden congestion. The level of congestion this time is even more serious than when the COVID-19 pandemic broke out when there were up to 450,000 TEUs waiting to enter or leave this port.

The reason is said to be due to the chain impact of the recent maritime crisis in the Red Sea region, forcing container shipping lines to change their schedules. In addition, many shippers are also rushing to transport goods to the US due to concerns about the risk of a strike in September 2024 when salary negotiations for seaport workers on the East Coast of the US take place. didn't go well. These factors have created the phenomenon of "ship congestion" with too many ships arriving at the port at the same time unexpectedly.

Data from the Maritime and Port Authority of Singapore (MPA) shows that in the first 4 months of this year, throughput through Singapore port increased nearly 9% over the same period last year, reaching 13.36 million TEU.

According to data from market research firm S&P Global Commodity Insights, in just the first 20 days of May 2024, Singapore port received 999 cargo ships, a jump of 56% compared to April 2024. MPA said that ships currently need to wait an average of 2-3 days to dock in Singapore. However, some shipping lines said they have to wait up to 7 days for their turn to dock.

As a hub for transshipment of goods, connecting to more than 600 other ports globally, congestion at the Port of Singapore is creating a ripple effect on ports in the region such as Port Klang and Tanjung Pelepas Port in Malaysia, Shanghai port and Qingdao port in China...

The long wait at Singapore port caused some ships to cancel their plans to dock at this port and redirect to neighboring ports, thereby forcing ports in the area to handle sudden, unplanned cargo volumes. .

Shipping market research firm Linerlytica said ports in Southeast Asia are becoming the "most serious bottleneck" for world maritime transport activities, when 26% of global container capacity is being blocked. stuck in this area.

Currently, the global port congestion index has reached 2 million TEU, equivalent to 6.8% of total global carrying capacity, compared to the normal level of only about 2-4%. This situation is exacerbating the shortage of empty containers and pushing container freight rates up again in recent weeks.

The Shanghai Container Shipping Index (SCFI) has increased 42% in the past month. The SCFI index measures spot shipping rates for containers from the Shanghai port area (China) to a series of major global ports such as Barcelona, ​​Hamburg, and Rotterdam in Europe; Los Angeles, Oakland, New York in the US; Osaka, Tokyo in Japan…

The SCFI index (as of May 31) has skyrocketed compared to the beginning of this year. (Source: SCFI)

The world's second largest shipping company Maersk has just informed customers about "significant" delays in ship schedules due to congestion at ports in the Mediterranean and Asia. As a result, Maersk ships will temporarily stop calling at some ports in the coming weeks.

Currently, some organizations predict that shipping lines will increase freight rates and add new surcharges to compensate for losses caused by port congestion. This has been applied by shipping lines throughout the COVID-19 pandemic.

Last week, a series of major shipping lines based in Taiwan (China) such as Evergreen, Yang Ming and Wan Hai predicted that congestion at ports in Asia would not ease in the short term, so freight rates Container shipping will remain anchored until the third quarter of 2024.

As Industry and Trade Magazine has reported, the global container index, representing spot container freight rates on major international shipping routes, has returned to the peak of the COVID-19 epidemic, with fixed ship rental prices. Limits of some segments reached an increase of up to 65% compared to the beginning of this year. The environment of high freight rates and increased transport output is expected to boost the business results of shipping enterprises.

According to Tapchicongthuong

Vietnam market update 10th June 2024 – Week 23 & May

 

PEPPER;

 

          •The price of black pepper last week continued to skyrocket from 148,000 VND to 174,000 VND, an increase of 18%. Particularly, there were days when prices surged by $700 - $800 in just one day.

 

          •Strong demand from various traditional markets such as China, the Middle East, and the US/EU in the past week has reinforced the belief that black pepper prices will continue to rise in the near future.

 

Let’s pay attention to the main points in the recent period with the following factors:

1/ Farmers:

• The rapid increase in pepper prices has made farmers very excited, alongside other agricultural products such as coffee and durian, which have also seen price increases, improving the livelihoods of the people.

• However, new pepper planting is still not widely recognized as the cost of new pepper planting has become more expensive compared to before, alongside other agricultural crops that offer better profits than black pepper, such as coffee, cocoa, and durian.