Pepper Exports to China Expected to Surge in Early 2025

According to statistics from the Vietnam Pepper and Spice Association, transport companies achieved positive results in October 2024. Specifically, export services successfully shipped 18,493 tons of various types of pepper, generating a total revenue of $120.2 million. Notably, logistics companies are actively providing international transport services to major markets, with the United States leading the way at 5,128 tons, accounting for 27.7% of total exports. Other significant markets include Hong Kong, the UAE, the Netherlands, and Germany.

Pepper Exports Earn $1.1 Billion in First 10 Months of 2024

By the end of October 2024, sea freight services supported the export of a total of 219,387 tons of pepper, including 193,892 tons of black pepper and 25,495 tons of white pepper. Freight forwarders played a crucial role in achieving a total export turnover exceeding $1.1 billion. Although container shipping volume decreased slightly by 1.9% compared to the same period last year, a sharp rise in export prices led to an impressive 48% increase in revenue. This demonstrates the effectiveness of optimizing sea freight rates and international shipping services.

In the export-import sector, major players like Olam Vietnam, Phuc Sinh, and Nedspice Vietnam are leading the market. Olam Vietnam, in particular, effectively utilized transport services to export 23,160 tons, capturing 10.6% of the market share and achieving a 51.1% growth compared to the same period last year. This growth reflects the efficiency of combining domestic container shipping with international transport services.

Notably, Q3 2024 saw significant shifts in export market structure. Transport companies reported robust growth in the Americas, with market share increasing from 27.63% to 39.23%. In contrast, international shipments to Asia dropped from 41.76% to 28.66%, primarily due to a decline in the Chinese market. Nonetheless, export-import services maintained positive growth across most continents, supported by favorable pricing.

In the near term, experts anticipate that logistics operations may face challenges due to limited domestic supply and the slow recovery of demand from China. However, early 2025 is expected to be more promising, with Chinese demand projected to increase sharply. Transport companies should prepare logistics solutions to meet market needs and optimize costs to provide affordable yet high-quality shipping services. With the anticipated recovery in Chinese demand, Vietnam’s logistics and export sectors have substantial opportunities to expand their presence and strengthen their position in the global market.