Increased shipping costs and customs charges have also impacted palm oil demand.

12-Mar-2026 05:42 PM

Jakarta. Trade is also being monitored. Risks have increased for export shipments of soybean oil and sunflower oil from the United States, Latin America, and the Black Sea region. Similarly, problems have arisen in shipping palm oil from Indonesia and Malaysia to Africa and Europe/America.

Milling companies are refusing to sail their ships through the Strait of Hormuz, and insurance companies are also not insuring ships and their cargo.

While palm oil shipments from Indonesia to South Asia are not at risk as this sea route is currently completely safe for navigation, demand for palm oil in distant countries has weakened somewhat. As long as Iran's war with Israel and the United States continues, it seems unlikely that much will change.

Indonesia is the world's largest producer and exporter of palm oil. It exports large quantities of palm oil to many countries around the world. Indonesia is facing difficulties in shipping palm oil to Middle East Asia.

Last year, it shipped about 1.8 million tonnes of palm oil to countries in the region, accounting for about 5 percent of its total exports.