Local Market In-Brief
*Disclaimer: Here’s a glimpse of our past report. Stay informed with the latest updates by subscribing to our mailing list for the most current information.
- The USD has shown recent strength across multiple currencies, including the VND, with the USD trading at 25,220 VND this morning. Local coffee prices have risen to 109,000 VND/kg for Grade 2.5% FDW Ho Chi Minh. Farmers we interviewed sounded content with any prices above 100,000 VND/kg, however, we are too early into the new crop and these theoretical levels are just lines written in the sands: they are easily washed away when confronted with new-crop reality.
- I Freight rates are starting to turn: Spot rates from Ho Chi Minh City to major Northern European ports have ended their decline, now averaging around $2,000 per TEU in line with an expected rate hike in early November. Rates to Mediterranean ports, such as Naples, Koper, and Trieste, are currently between $2,500 and $3,500 per TEU, depending on the shipping line and route
- Starting in November, rates are likely to increase further with the General Rate Increase (GRI) rollout. With limited cargo space, carriers will reintroduce premium services on November 1, at $2,000 per container, which guarantees space along with priority Estimated Time of Departure (ETD) or specific transit time options.
