Palm & Veg Report, July 2018
It’s mid summer and guess what? Global freight markets like many of the top world cup football teams this year, except for England of course, have gone to hell in a handbag! The major difference this year compared with previous years is that fuel prices are continuing to rise and freight rates are struggling to keep up, which has created the worst possible combination if you are a ship owner/operator. Trading activity has also been fairly lacklustre in virtually all of the edible oil markets making it just as challenging for those trying to make a living on the other side of the fence.
Some longer term encouraging news for the trade is that rising demand and stagnating domestic production is expected to boost India’s vegetable oil imports to 25 million tonnes by 2030, from 15.5 million tonnes in 2017, the problem is most of us will be long gone before this takes off!