Brazil turpentine shipments delayed by port backlogs
Brazilian gum turpentine export shipments are being delayed by isotank availability that is significantly tightening owing to difficult booking schedules and port congestion in Asia-Pacific.
Delays are close to a month for shipments going to India, sources said. In some cases vessels have been at a port for weeks, adding to delays caused by difficult booking schedules.
With a number of Brazilian ports handling more goods than before, including Brazil's key port for pine chemicals exports Santos where cargo in the first half of 2024 hit a record for the period. There has also been congestion at Asian ports.
"There is chaos in southeast Asia," a buyer in Asia said. "Ship lines confirm bookings just to cancel them later."
India is Brazil's largest gum turpentine buyer, with most going into the camphor and aroma chemical markets during peak season in the second half of the year. India imported 12,509t of gum turpentine from Brazil in 2023, Global Trade Tracker (GTT) data show, the second highest since at least 2015. In 2022, India imported a record 12,944t of Brazilian gum turpentine, according to GTT.
Volatile gum turpentine freight rates from Brazil to India has now incentivised several Brazilian suppliers to shift from cif to fob-based sales to avoid the risk of unpredictable isotank costs. Gum turpentine freight rates from Brazil to India have risen to around $7,000-7,500 per isotank from $2,500-3,000 levels in January 2024, one customer said.
The escalating freight rates continue to put upwards pressure on the Brazil gum turpentine market, with prices rising amid steady demand from India, the US and Mexico.
Brazilian Pinus elliottii gum turpentine spot export prices were assessed at $2,200-$2,250/t fob, Brazil port, on 15 July, up by more than 25pc from $1,650-$1,800/t fob, Brazil port, at the same time last year. The export prices are higher this year because of stronger demand from the US flavours and fragrance market, firm business activity into India and Mexico and lower buyer stocks.
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India extends BIS deadline for PVC imports to December
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Canadian labor board orders rail service to resume
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