 |

Section 1: Price Direction:
Logistic Challenges During COVID-19 and Its Impact on Palm Oil Trade
|
 |
 |
By: Ms. Yasothai Munairu
About 24 years of experience in Logistics and Customer Service in Shipping & Forwarding, Manufacturing, Relocation and Recruitment, with working experience in Malaysia, Singapore and remote management in North East Asia Oceania Logistics Regions.
Currently, she is the Head of Logistics, Sime Darby Oils based in Malaysia.

VIEW PROFILE
|
|
This pandemic has caused a tremendous impact to the entire logistics sector, where Malaysia is not spared either, with restricted movement throughout the year
Sea Freight
Permits to resume the work
Port storage charges (containers stuck)
Voyage cancellations
Entire Asia – Europe / USA route cancellations
Trucking
Severe delays & backlogs (limited trucking, permits, quarantine for drivers)
Rate increases especially across provinces
Air Freight
Flights cancelled
Capacity drop of approx. 65% vs 2019
Limited staff on duty (40-50%)
Warehouse
Growth in storage demand as manufacturing companies are expected to have more stock due to reduction in demand
|
 |
7,228 registered users
0 currently online
Members' Login |
|
 |
|
Section 1: Price Direction |
|
|
|
|
|
|
|
Archives |
 |
MITIGATING THE NEXT WAVE OF MARKET UNCERTAINTIES Nov 14, '22 ~ Nov 18, '22 |
|
 |
ASSESSING 2022: MANAGING OPPORTUNITIES AND RISKS Mar 28, '22 ~ Apr 01, '22 |
|
 |
Section 2: Opportunities for Palm Oil in Asian Market Oct 18, '21 ~ Oct 24, '21 |
|
 |
Section 1: Oils & Fats Supply, Demand and Outlook Oct 18, '21 ~ Oct 24, '21 |
|
 |
Section 1: Price Direction Apr 05, '21 ~ Apr 11, '21 |
|
 |
Section 2 : Special Focus on the US Apr 05, '21 ~ Apr 11, '21 |
|
 |
POINTERS ON THE PRICE TRENDS Jun 22, '20 ~ Jun 28, '20 |
|
 |
Section 1 : CPO Price Trend Feb 24, '20 ~ Mar 01, '20 |
|
 |
Section 2: Global Palm Oil Market Opportunities Feb 24, '20 ~ Mar 01, '20 |
|
 |
Section 2: Special Focus Aug 19, '19 ~ Aug 25, '19 |
|
 |
Section 1 : CPO Price Trend Aug 19, '19 ~ Aug 25, '19 |
|
 |
Special Focus - India Feb 25, '19 ~ Feb 24, '19 |
|
 |
Section 1: CPO Price Trend Feb 18, '19 ~ Feb 24, '19 |
|
 |
Section 2: Global Palm Oil Market Focus Aug 06, '18 ~ Aug 12, '18 |
|
 |
Section 1: CPO Price Trend Aug 06, '18 ~ Aug 12, '18 |
|
 |
Section 2 : Global Palm Oil Market Focus Jan 29, '18 ~ Feb 04, '18 |
|
 |
Section 1: CPO Price Trend Jan 29, '18 ~ Feb 04, '18 |
|
 |
Section 2: Regional Focus : CIS Countries Aug 21, '17 ~ Aug 27, '17 |
|
 |
Section 1: Palm Oil Price Fundamentals Aug 21, '17 ~ Aug 27, '17 |
|
 |
Section 2: Market Challenges and Opportunities Feb 20, '17 ~ Feb 26, '17 |
|
 |
Section 1: Price Directions Feb 20, '17 ~ Feb 26, '17 |
|
 |
Section 1 : Palm Oil Price Fundamentals Aug 22, '16 ~ Aug 28, '16 |
|
 |
Section 2 : Trade Issues and Market Prospects Aug 22, '16 ~ Aug 28, '16 |
|
 |
2016 Market Direction - Twists and Turns of Palm Oil Prices Feb 22, '16 ~ Feb 29, '16 |
|
 |
Second Half 2015 - Anticipating Market Price Direction Aug 17, '15 ~ Aug 23, '15 |
|
 |
Special Focus: Indian Sub-Continent Aug 17, '15 ~ Aug 23, '15 |
|
 |
Opportunities, Challenges And Trend In 2015 CPO Price Feb 23, '15 ~ Mar 01, '15 |
|
 |
2nd Half 2014: Market Challenges, Predictions And Directions Aug 25, '14 ~ Aug 31, '14 |
|
 |
Anticipating 2014 Palm Oil Price Direction Feb 17, '14 ~ Feb 24, '14 |
|
 |
Prospects For Second Half Of 2013 - Managing Price Fluctuations Jul 22, '13 ~ Jul 29, '13 |
|
 |
Mapping The Palm Oil Price - 2013 Market Perspective Feb 18, '13 ~ Feb 27, '13 |
|
 |
Palm Oil : Challenges, Opportunities And Latest Market Directions Aug 06, '12 ~ Aug 17, '12 |
|
 |
2012 Price Direction, Issues & Challenges Feb 13, '12 ~ Feb 20, '12 |
|
 |
Challenges, Opportunities And Latest Price Trend Aug 08, '11 ~ Aug 16, '11 |
|
 |
Challenges, Opportunities And Price Direction Feb 07, '11 ~ Feb 17, '11 |
|
 |
2010 Year End Prospects - What Lies Ahead? Aug 02, '10 ~ Aug 08, '10 |
|
|
|
 |
Posted on behalf of Ms Yasothai Munairu : The recent Suez Canal issues have exacerbated the current difficulties and will be having a negative impact on freight movement. The impact is expected to last for the next two months, and we are already seeing an increase in demand on the Europe-Asia-Europe trade lane, as well as to the Indian subcontinent. Seeing an upward movement on rates out of Asia with demand and rates are likely to increase sharply in April 2021.
3 years ago
Hi VS Lee, Thank you for the comment. Question : Are you seeing or foresee any logistic improvements especially in areas/countries where inoculation progress is high? Answer : In my opinion countries with high inoculation progress should foresee logistics improvements in terms of workforce availabilities for example :- • Ports/Airport : An increase in the number of ground-support staff on the job at any given time while still adhering to the SOPs for social distancing • Land Transportation : Local distribution will improve as more drivers become available and trucks can be deployed, but cross-border land transportation will remain difficult due to each country's driver SOPs. • Customs & Government agencies – with automation and more customs officers/govt agents personnel capacity However, with an increase of shipments and clearing of backlogs exercise, improvements of delivery lead times will not see a drastic improvement even with the high inoculation rate. Thank you.
3 years ago
Dear Jenny Foo, Thank you for questions. 1) How majorly did the logistics problem caused the run up of CPO price? Answer : Though the logistics problem did have an impact in the cpo prices at the beginning of the mco period, the run up of CPO price currently is largely due to the shortage in both palm and global vegetable oil production leading to extremely low vegetable oil stock availability. 2) Which factor was more major to cause the hike in palm oil price? Was it not enough stock (because not enough harvesters) or there was still enough stock to sell but logistics standstill? Answer : As per question 1, the major cause for the hike in palm oil price is due to extremely low stock from lower production in vegetable oils, especially in production and availability of sunflower, soy and palm. 3) When (year) do you think logistics will be back to normal again? A guess from an expert such as you will be useful. Answer : Continuous demand for ocean freight from Asia to the United States continues to overwhelm major US ports, stranding ships outside many major West Coast ports and pushing up air cargo prices as importers seek alternatives. And, just as things were looking up from Asia to the Mediterranean and Europe, an Evergreen container ship ran aground in the Suez Canal, causing traffic to be diverted in both directions. In your context, I believe “normal” refers to freight rate stability, space availability, and routing dependability. As of now none can predict when the situation will normalize but what we can do is manage our supply chain movement creatively and optimized resources we have. Thank you.
3 years ago