Indonesia’s B50 biodiesel mandate to put pressure on vegoil freight rates through 2027

AI Summary

Indonesia's B50 biodiesel mandate is expected to increase pressure on vegetable oil freight rates through 2027, following record highs in April 2026 triggered by US-Iran conflict-related supply disruptions. Though rates have declined from peaks, they remain elevated compared to pre-conflict periods.

Vegoil freight rates on key routes surged to record highs in April 2026, following supply disruptions caused by the US—Iran conflict. Although rates have retreated from their peak, mirroring the decline in product tanker earnings amid weaker demand, they remain above pre-conflict levels. The implementation of Indonesia’s B50 biodiesel mandate is expected to squeeze the ...