September 2024 Regional Market Report News

Crop Updates

Coconut Milk

Drought conditions caused by El Niño effect across Southeast Asia led to decreased production of the coconut crop. Combined with the high demand for coconut products worldwide, we are anticipating tightness in the market. We are in constant communication with our suppliers and are confident in our ability to supply coconut milk.

Farro

Higher demand from Asian markets and poor crop yields this year have led to supply tightening in the farro markets. However, we don’t anticipate any stockouts as we continue to work with our suppliers and remain confident in our ongoing service level.

Global Supply Chain and Logistics Updates

Resilient Container Imports

As we enter the fall season and approach the final quarter of 2024, consumer demand continues to push imports near all-time monthly highs. The South Pacific, primarily China, is a key source of this surge in U.S. container imports. With additional tariffs on Chinese goods planned, importers may be front-loading to avoid higher duty rates. Despite negative press and recession concerns, the economy remains strong.

Freight Rates Reach Their Plateau

The dramatic rise in freight rates witnessed over the spring and summer months has begun their plateau. With the stronger-than-expected trade demand, nearly all major trade lanes have been affected by peak season emergency surcharges. We expect pricing to loosely reflect trade demand, however, major reductions won't be seen until the Suez Canal is fully operational.

At Roland Foods we utilize our robust trade network to leverage priority service. We assure even during the most challenging environments we can fulfill our customers’ orders.

East and Gulf Coast Port Strike

We have been closely monitoring the situation with the contract negotiations of International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX), and the associated potential of an East and Gulf Coast port strike. Based on the current impasse of the negotiations, there is a possibility of a dockworker strike following the contract expiration on September 30, 2024.

While we are hopeful an agreement will be reached before any meaningful disruptions, we are well-positioned to mitigate the impact of cargo delays.

Sources:

• Descartes