News Capsule: Palm oil export demand slows as freight, insurance costs rise
12-Mar-2026 12:09 PM
News Capsule: Palm oil export demand slows as freight, insurance costs rise
★ Palm oil export demand has slowed after the U.S.-Israel conflict with Iran pushed up freight and insurance costs. According to Indonesia’s palm oil producers’ association (GAPKI), shipping and insurance costs have increased by around 50% as vessels are taking longer routes and risk premiums have risen.
★ Indonesia, the world’s largest palm oil exporter, said new export orders have moderated while existing contracts are still being fulfilled.
★ Demand from major buyers such as India and China is also reported to be weak as edible oil stocks in both countries remain stable.
★ Rising palm oil prices have also reduced its price advantage over soyoil and sunflower oil, further affecting demand.