
Daily Coffee Report 8/12/26
Daily coffee report

- Coffee
By: Alexis Rubinstein, Managing Editor - Coffee Network
CoffeeNetwork (New York) – Drewery has published their latest World Container Index which shows that shipping prices have fallen this week.
The composite index decreased 2% this week to $5,806 per 40ft container following a period of continuous increases since week 18, and has increased 268% when compared with the same week last year.
The latest Drewry WCI composite index of $5,806 per 40ft container is 44% below the previous pandemic peak of $10,377 in September 2021, but it is 309% more than average 2019 (pre-pandemic) rates of $1,420.
The average composite index for the year-to-date is $3,886 per 40ft container, which is $1,108 higher than the 10-year average rate of $2,777 (which was inflated by the exceptional 2020-22 Covid period).
Freight rates from New York to Rotterdam increased 4% or $26 to $736 per FEU. Likewise, rates from Rotterdam to New York and Los Angeles to Shanghai rose 1% to $1,954 and $706 per 40ft box respectively. Conversely, rates from Shanghai to Los Angeles decreased 5% or $354 to $6,934 per 40ft box. Similarly, rates from Shanghai to New York dropped 4% or $399 to $9,213 per 40ft container. Likewise, rates from Shanghai to Genoa declined 1% or $82 to $7,645 per FEU. Meanwhile, rates from Rotterdam to Shanghai and Shanghai to Rotterdam remain stable. Drewry believes that spot rates have peaked, but continued shipping disruptions will keep a floor under the spot rates for some time.
The coffee supply chain, despite this week’s lower shipping rates, continues to be plagued with ongoing logistical challenges.
On July 10th, shipping company Maersk confirmed that vessel Maersk Sentosa (operated by Maersk Line, Limited, a subsidiary of Maersk and operating US-flagged vessels) reported being targeted by a flying object in the northernmost part of the Gulf of Aden in the early morning hours of 9 July.
Due to ongoing threats, most shipping companies are still rerouting ships around the Cape of Good Hope. However, the risk zone has expanded, and attacks are reaching further offshore. This has forced vessels to lengthen their journey further, resulting in additional time and costs to get cargo to its destination.
The knock-on effects of the situation have included bottlenecks and vessel bunching, as well as delays and equipment and capacity shortages. Last month, Maersk estimated an industry wide capacity loss of 15-20% on the Far East to North Europe and Mediterranean market during Q2.
Brazil, although mostly spared from issues in the Red Sea, is also grappling with shipping delays.
In June, 62% of the 413 ships handling coffee in Brazil's main ports experienced delays or changes, resulting in the country failing to export 1.232 million bags of coffee. This situation prevented US$294.671 million from entering commercial transactions and caused losses of R$4.7 million to 30 exporter companies. The Port of Santos, the primary coffee export hub, accounted for 59% of these non-exports. Cecafé's technical director, Eduardo Heron, attributed these delays to infrastructure limitations and insufficient port space, emphasizing the need for dialogue to address these challenges and reduce logistical risks.
Alexis Rubinstein
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Daily coffee report


August 12 – Today’s focus is on inflation, with the July consumer price index data out this morning. We have this, and one more month of data, ahead of the next Federal Reserve meeting. Of course, headlines from the Middle East and the Black Sea wars also have an ongoing influence on the markets. Stock futures posted gains this morning, while the VIX traded just below 15. The dollar index traded near 99.7. Yields on 10-year Treasuries are trading near 4.66%, while yields on 2-year Treasuries are trading near 4.18%. WTI crude oil is trading near $83, while Brent trades near $88 per barrel. The grain and oilseed markets rebounded from yesterday’s losses ahead of today’s highly anticipated WASDE crop report that is due out at Noon Eastern Time.


Daily coffee report

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