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.

 

 

Pepper Prices increased rapidly

 

Prices increased rapidly, pepper exports were expected to reach billions of dollars

Posted onJune 6, 2024by VPA

06 Jun

Pepper prices are continuously increasing and will continue to increase in the long term

According to information from the Ministry of Industry and Trade, from the end of April until now, pepper prices have continuously increased sharply and adjusted prices daily. For example, around mid-May 2024, the pepper price was 120,000 VND/kg. By the end of May, the pepper price increased to 127,000 - 129,000 VND/kg. Updated on June 5, pepper price nearly reached 150,000 VND/kg.

Vietnam's pepper industry accounts for 40% of output and 60% of the world market share. According to VPSA, the global pepper market size is worth about 5.4 billion USD and is forecast to achieve an average growth rate of about 20% between 2024 and 2032.

Sharing with the press, Mr. Hoang Phuoc Binh - Vice Chairman of Chu Se Pepper Association (Gia Lai) said that this year's pepper output from Vietnam and many major producing countries is forecast to decline, due to impact of the El Nino phenomenon. Besides, the area under cultivation of this agricultural product has decreased significantly. This is the basic reason why pepper prices increased sharply.

In 2024, export pepper prices will increase due to reduced output and low inventory

For more information about this story, Ms. Hoang Thi Lien - President of the Vietnam Pepper and Spice Association (VPSA) said that pepper prices have continuously plummeted for many years, causing many pepper growing households to halve. area, many perennial gardens were cut down and planted with durian and some other trees with higher economic value, causing supply to decrease.

Furthermore, in Vietnam, the amount of inventory transferred from last year to this year is insignificant. Meanwhile, pepper demand is recovering strongly from major markets such as Europe, the US and China. Supply is in short supply, while demand is high. Those factors are the reasons why pepper prices increased sharply.

Notably, Mr. Binh informed that the pepper area is still decreasing due to aging and people changing crops. While there is no new planting at this time, it will still not be possible to increase output in the next 4 years. Therefore, pepper will maintain a scarcity of supply.

"With the current situation, global pepper production cannot meet consumer demand, so pepper prices will still tend to increase in the next 3-5 years," Ms. Hoang Thi Lien added.

According to industry experts, pepper prices may reach a new peak of 350,000 - 400,000 VND/kg. It doesn't stop there, it is very possible that pepper is entering a new price increase cycle, normally this cycle will last for 10 years and the price of 350,000 - 400,000 VND/kg is forecast for the next 10 years. During this period, pepper prices will still have fluctuations in adjustments.

Pepper exports are expected to reach billions of USD

In the first 5 months of 2024, the United States continues to be Vietnam's largest pepper export market reaching 30,466 tons, accounting for 26.6% and increasing by 44.4% over the same period. Germany rose to become Vietnam's second largest export market reaching 7,532 tons, accounting for 6.6% and increasing 103.2%.

Some markets have impressive increases in export volume such as: Italy increased by 179.0%; Russia increased by 49.7%; Spain increased by 49.1%; Egypt increased by 39.0%…

According to VPSA's preliminary statistics, in May 2024, Vietnam exported 31,357 tons of pepper of all kinds with an export turnover of 141 million USD, the average export price of black pepper in May reached 4,542 USD /ton, white pepper reached 6,106 USD/ton, an increase of 229 USD for black pepper and 63 USD for white pepper compared to the previous month.

Accumulated in the first 5 months of the year, Vietnam has exported 114,424 tons of pepper of all kinds with a total export turnover of 493.1 million USD. Compared to the same period in 2023, export volume decreased by 13.2%, but export turnover increased by 20.6%. The average export price of black pepper in 5 months reached 4,197 USD/ton, white pepper reached 5,804 USD/ton, an increase of 754 USD for black pepper and 849 USD for white pepper respectively compared to the same period in 5 months of 2023.

Talking to reporters, a representative of the Import-Export Department (Ministry of Industry and Trade) predicted that the increase in domestic pepper prices will push up export pepper prices and we can expect the pepper industry to earn billions of dollars in export revenue. in this year.

At the same time, he added that in the world market, it is forecast that pepper prices will continue to increase in the near future, but the growth rate will slow down. In the domestic market, black pepper prices have increased sharply due to limited supply, but people should not massively expand planting areas but focus on investing and taking care of intensive farming so that pepper plants can develop sustainably. and stable.

As for businesses, VPSA recommends that export businesses be careful in purchasing and exporting activities to avoid risks similar to the recent coffee or rice prices.

Export businesses still have concerns

In fact, pepper prices increased sharply in the context of a falling USD and a tense shipping market, causing significant difficulties for export businesses in the past and in the future. In addition, many experts are also concerned about the possibility that due to speculative activities, traders and investors have gathered goods and created an artificial scarcity, pushing up pepper prices.

Many businesses share that pepper prices are double the same period last year, and have reached the highest level in the past 8 years, causing difficulties for export businesses, businesses cannot buy goods while prices continue to rise. is pushed up. Many farmers are stockpiling and waiting for prices to increase further. This is putting pressure on some businesses to collect enough goods for their partners.

Regarding this issue, Mr. Binh commented that pepper prices have increased rapidly recently due to the impact of speculative factors. Currently, world prices are increasing, domestic prices are lower than world prices, so many small dealers are holding goods, pushing up prices.

The Vietnam Pepper and Spice Association (VPSA) currently estimates that Vietnam's pepper output in 2024 will only reach about 170,000 tons, down 10% compared to the previous year. This is also the lowest level in the past 5 years. The reason is that many farmers cut down pepper trees when prices fell 4 years ago (pepper price dropped to only 40,000 VND/kg) to plant more economically beneficial trees such as durian, coffee...

Global pepper production in 2024 is expected to reach about 465,000 tons, down 1.2% compared to last year. Meanwhile, global pepper consumption demand is expected to reach 529,000 tons, exceeding production by 64,000 tons. This caused inventories to continue to decline to 428,000 tons, the lowest level in the past 6 years.

According to VTV.vn

Vietnam Pepper Market, June 07, 2024

 

Pepper export businesses are "gutted"

Posted onJune 7, 2024by VPA

07
Jun

Amid the shocking increase in pepper prices, some businesses reported that export goods were "withdrawn" causing international customers to not receive the full amount of delivered goods.

On June 7, the domestic pepper price jumped to 164,000 VND/kg, an increase of 16,000 VND/kg compared to the previous day and an increase of more than 60% compared to mid-May. In early 2024, pepper prices were still low. at 70,000 VND/kg.

The hot increase in pepper prices helps gardeners and agents who are storing pepper profit, but commercial units that forget the practice of "buying far - selling far" will suffer losses because they have to buy goods at high prices to deliver to price contracts. short.

Processing enterprises are also tired of increasing raw material prices while final product prices can only increase slightly.

Meanwhile, the Vietnam Pepper and Spice Association reported that some businesses reported losing part of their export volume.

Pepper prices are increasing dramatically

Specifically, the importer discovered that the goods were in short supply compared to the contract, while the volume of the container, including the goods inside weighed at the port according to the weighing slip at the port, showed that the goods were of sufficient volume.

According to an internal investigation, the export enterprise suspected the possibility of goods being lost while the container was being unloaded and awaiting export. This shortage of goods reduces the trust of international partners and customers in Vietnam's logistics and shipping system as well as the reputation of export businesses. In addition, businesses have to spend more money to increase security, insure goods, and handle lost goods.

The Vietnam Pepper and Spice Association has sent a warning to its members and requested businesses experiencing similar situations to provide information for the Association to compile and report to relevant ministries and agencies for consideration. handle.

According to Labor Newspaper

Pepper market on June 5, 2024

 

Pepper market on June 5, 2024, pepper prices continue to increase rapidly in many provinces

Posted onJune 5, 2024by VPA

05
Jun

Today,  pepper prices maintain increasing momentum in many places.

In the domestic market

The latest survey shows that  pepper prices  today continue to increase in many localities.

Specifically, pepper prices in provinces are standing at 144,000 VND/kg, an increase of 1,000-2,000 VND/kg compared to yesterday.

On the world world market

According to an update from the International Pepper Association (IPC) on June 4 (local time), the trading price of Lampung black pepper (Indonesia) increased by 0.02%, the purchasing price of Brazilian black pepper ASTA 570 and the price of Kuching black pepper (Malaysia) ASTA remained stable compared to June 3.

Type name	World black pepper price list (Unit: USD/ton)
	June 3	June 4	% change
Lampung black pepper (Indonesia)	5,633	5,634	+0.02
Brazilian black pepper ASTA 570	5,900	5,900	0
Kuching black pepper (Malaysia) ASTA	4,900	4,900	0

At the same time of the survey, the purchasing price of Muntok white pepper increased by 0.03%, while the Malaysian ASTA white pepper price had no new adjustments.

Type name	World white pepper price list (Unit: USD/ton)
	June 3	June 4	% change
Muntok white pepper	7,422	7,424	+0.03
ASTA Malaysian white pepper	7,300	7,300	0

The driving force for price increases comes from global supply shortages, while demand is recovering positively; Along with that, sea freight rates increased sharply again, causing pepper export costs to increase.

Under “new normal” conditions, voyages will be longer but with fewer port calls. Routing around the Cape of Good Hope is a temporary solution to avoid risks in the Red Sea but also leads to consequences in terms of cost, time and especially increased transport emissions due to the long route. This causes a shortage of empty containers and makes a shipping crisis imminent.

The current increase in pepper prices is much higher than the most optimistic forecasts made at the beginning of the second quarter of 2024 with the prediction that pepper prices will only reach 110,000 VND/kg by the end of this quarter.

According to industry experts, the pepper market has entered a new price increasing cycle with a period lasting from 8 to 10 years, according to information from The Gioi and Vietnam newspapers.

According to VietnamBiz.vn

PINK PEPPER BRAZIL 2024 SEASON IS READY

 

PINK PEPPER BRAZIL 2024 SEASON IS READY

---

Vietnam Pepper market update 3rd June 2024 – Week 22

 

•        The price of pepper continued to increase by 18.5% last week. Therefore, the price of pepper has almost only increased since the beginning of April until now and there are no signs of stopping.

 

•        Besides the supply and demand factors, we can clearly see that many agents and exporters are facing a shortage of raw materials for their signed orders. This leads to a need to intensify the collection of raw materials to ensure the progress of orders to be delivered in the 2nd/3rd/4th quarter 2024. This is the main reason for the continuous and strong price increases in the market recently.

 

•        In addition, the rapid price increase has encouraged speculation activities from agents, exporters, and local farmers in the domestic market as the predicted decrease in raw materials supply is expected to be significant. Vietnam has exported 113,000 tons in the first five months of the year while the supply is narrowing. The amount needed for export has decreased significantly while the harvest season for 2025 is still 8 months away. This is a significant challenge for the pepper market as the supply is forecasted to be lower than the global demand.