Palm & Veg Report, May 2019

Freight markets have remained surprisingly calm over the last few weeks leaving us with very little gossip to report on this month for which we can only apologise. Unfortunately a possible fall out in the U.S-China trade talks could change everything in an instance so watch this space. The unprecedented and devastating typhoons which affected major regions of East Africa and India last month had a significant impact on shipping and lots of time and energy has been consumed trying to replace late vessels and reallocating cargo stems.

ENI may well be under renewed pressure from Greenpeace to phase out palm oil for biodiesel blending but the EU’s appetite for biodiesel continues to grow. Imports tripled in 2018 compared with 2017, after anti-dumping tariffs on fuel from Argentina and Indonesia were suspended. Reported figures indicate that in 2017 the EU imported 1.165M tonnes of which 387,000 originated from Indonesia compared to a whopping 3,329M tonnes in 2018 of which 785,000 mtons originated from Indonesia. Whether you agree with the food for fuel argument or not, this remains spectacularly good news for shipping!

James Woolfson