Is currency volatility now a bigger threat than freight cost for coffee import margins?
T
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Freight cost still hurts, but lately I hear more traders complain about exchange rate movement eating margin faster than shipping itself. A deal can look okay on booking day and much thinner before payment clears. Is FX volatility now a bigger threat than freight?
5 Replies
L
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For some lanes yes. Freight became more predictable than currency in some months.
V
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We feel this also. Sometimes freight not moving too much, but exchange rate already make landed cost change fast.
M
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Small importers suffer more because hedge options are limited.
M
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Yes, the logistics problem is visible, the FX problem is quieter but painful.
P
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It depends on payment timing too. Long gap between contract and settlement creates more pain now.
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