Palm & Veg Report, FEBRUARY 2025

Global shipping markets commenced the new trading year in mixed territory as jitters over the global economy persist. Poor export data continues to subdue market sentiment but despite the slump in overall activity most trade lanes look like they may have found a new floor and freight rates are no longer declining at the pace they were at the end of last year. The Asian CPP and palm markets failed to see any pre-Chinese New Year rush this year so we will have to see now that annual festivities have subsided what happens to volumes and rates next. Global markets seem to have greeted Donald Trump’s presidency with apprehension as his ambitious plans for relations and tariffs start to gain traction and the jury is still out as to how or where his new policies will affect the energy and shipping markets moving forward. The Houthi rebels signalled that they will avoid striking vessels in the Red Sea region, except for those with Israeli interests which could, potentially, be huge news for the shipping industry. That said, we don’t expect to see many ship owners routing their vessels via the Suez over the short term as many will want to ensure that longer term peace is fully restored in that region first. It has certainly not been a boring start to the year which serves as a reminder that no one really has much of a clue what lies ahead.