Quarterly Market Update – October 2024

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Quarterly Market Update – October 2024

October 2024

ItemCountry of OriginBeginning of harvestEnd of harvestUpdates
Baby CornThailandYear roundYear roundFlooding in Northern Thailand has destroyed approximately 50% of the plantation area for baby corn and sweet corn. We will see a shortage of seeds coming soon, resulting in higher raw material costs and longer lead times.
Tuna Albacore and SkipjackThailandYear roundYear roundCatchings for skipjack and albacore are solid but demand is softer. While this leads to lower raw material costing, the gains are eaten by still increasing ocean freight costs.
TomatillosMexicoFebruaryAprilTomatillos had a terrible harvest this year due to weather. The great news is that we have started to receive product again but as we start 2025 supply could start becoming limited again.
PeppersPeruMayJulyPeppers are still going to be short and in tight supply as we get into 2025. We currently have product en route finally but were also told that supply will be limited in 2025.
Edamame/MukimameChinaJulyNovemberThe crop is steady and as expected, with no adverse conditions to plague harvest and production. Ocean freight for this lane continues to be on the higher side, as we are in the midst of peak holiday shipping.
PineappleThailandDecemberJanuaryWinter crop has started later than expected. Expectations are lower tonnage/ yield, resulting in higher nitrate presence and lower choice grade raw material availability.

Logistics Update

Geopolitical attacks in the Red Sea continue to affect shipments from China, Greece, Turkey, and Egypt, resulting in longer transit times, blank sailings, capacity constraints, equipment shortages, and increases in ocean freight from these regions. Vessel traffic in the Panama Canal is nearly back to normal on the number of daily transits with around 35 crossings per day.

Hurricane Helene caused catastrophic destruction in the southeast US this past week. Our heartfelt sympathy goes out to all affected. Helene also severely impacted the trucking market, causing disruptions in service, capacity, and a spike in rates.

The ILA walkout took place Oct 1st at 12:01am. The strike affects US East Coast and Gulf Coast ports. If a contract is not in place quickly, the strike will cause meaningful delays obtaining our cargo from the port(s) and cause service disruptions. If you have any questions about our current inventory levels in the US, reach out to your Savor Sales Representative.