RBD PKO Olein: November 2025 Logistical Headwinds and a 12% CIF Cost Inflation for Europe

The procurement of RBD Palm Kernel Olein (RBD PKOo) in November 2025 is less about price volatility at the source and more about the escalating cost of delivery. The global trade environment, burdened by logistical bottlenecks, is directly inflating the final cost for buyers. While the FOB Southeast Asia price is firm at USD 1,780/MT, the corresponding CIF Rotterdam/Europe price has jumped to approximately USD 2,010/MT. This near USD 230/MT differential underscores the significant impact of external costs. In global trade, having a partner who can smoothly connect the high-quality products of the East with the complex demand of the West is paramount, reflecting a continuous commitment to secure delivery and efficient supply management.

The Rising Cost of Global Transit

The primary driver of this inflation is the steep increase in global shipping rates. Freight charges on the vital Southeast Asia to Europe route have risen, adding approximately USD 10/MT to the cost since Q3, contributing an estimated 12% to the total CIF cost for November shipments. Geopolitical tensions continue to complicate transit, extending logistical lead times by an average of 5-7 days due to necessary diversions and increased insurance premiums. This forces manufacturers to re-evaluate their just-in-time inventory systems and hold higher safety stocks.

Regulatory Shifts and Market Re-routing

Beyond logistics, regulatory pressures are quietly rerouting trade flows. The anticipation of the EU Deforestation Regulation (EUDR) is already influencing procurement decisions, with compliance costs and risk aversion expected to reduce the volume of RBD PKO Olein exports to the EU by an estimated 10-15% in 2025 for non-compliant suppliers. This volume is being rapidly absorbed by robust Asian markets. For instance, the Solvent Extractors Association of India (SEA) reported a strong increase in overall edible oil imports for the prior month, ensuring firm regional demand for RBD PKOo for food and industrial usage. Successfully navigating these regulatory landscapes and price differentials requires real-time data and strategic sourcing, making the difference between securing the right feedstock at a sustainable cost or missing production targets entirely.

Sources:

1. Oleochemicals Asia: "Geopolitics and Trade Flows: The Impact on Palm Chemicals in 2025.": https://www.oleochemicalsasia.com/market-insights/tag/palm-chemicals 

2. Solvent Extractors Association of India (SEA): "Monthly Edible Oil Import Data: October-November 2025.": http://www.seaofindia.com/ 

3. Industry Logistics Platform (e.g., Drewry): "Container & Bulk Liquid Freight Rate Indices: Southeast Asia to Europe Q4 2025.": https://www.drewry.co.uk/supply-chain-advisors/supply-chain-insights