Just as the industry was already grappling with raw material tightness and cost pressures, a new disruption has emerged: major shipping lines including MSC, SITC, and Maersk have officially classified coconut shell charcoal as Dangerous Goods (UN1361, IMDG Class 4.2). This means that all related cargo – especially those bound for activated carbon production – will now face higher compliance, storage, and shipping costs.
Immediate Impact: stricter packaging and documentation, DG-qualified carriers and ports, longer booking times, and significantly higher logistics costs across the supply chain.
Why the Reclassification Matters
Coconut shell charcoal’s reactive carbon composition makes it prone to self-heating if ventilation is poor. Under IMDG rules, it now falls under “self-heating substances”, requiring hazardous cargo protocols such as:
- Special packaging to prevent heat buildup and spontaneous combustion;
- Qualified DG carriers and dedicated storage areas at ports;
- Detailed declarations, MSDS, and self-heating test reports;
- Higher handling, inspection, and insurance costs.
Multiple Pressures on the Supply Chain
The reclassification comes amid an already strained market. Southeast Asia – the main source of coconut shells – has seen severe weather, reduced harvests, and tighter export policies. The ongoing Red Sea crisis continues to inflate freight costs and extend transit times. At the same time, container requirements such as aluminum lining have become mandatory for some carriers, adding roughly RMB 2,500 per container in packaging costs.
According to industry data, coconut shell charcoal prices have more than doubled since late 2024. High-grade gold recovery activated carbon has already surpassed USD 3,500 per ton, and continues to rise due to strong global demand.
Cost Transmission Across the Industry
Rising costs are spreading from upstream raw materials to downstream users:
- Upstream suppliers face higher compliance, warehousing, and export declaration expenses.
- Activated carbon manufacturers bear increased production and safety costs.
- End users such as gold mining, water purification, and air filtration companies are absorbing pass-through price hikes.
With supply tightening and regulatory burdens increasing, many factories are operating below capacity, struggling to secure enough charcoal feedstock for stable output.
Market Outlook: Higher Prices, Longer Lead Times
The combination of DG transport regulations, raw material scarcity, and surging demand indicates that coconut-based activated carbon prices will remain on an upward trajectory through late 2025 and early 2026. Shipping delays, booking difficulties, and elevated freight surcharges will likely continue.
HANYAN’s Recommendation: Secure Supply Early
For customers relying on coconut-based activated carbon – especially for gold recovery applications – the window to lock in stable pricing is closing fast. We strongly recommend confirming purchase orders as early as possible to secure allocation, manage logistics risk, and stabilize cost expectations.
Conclusion
This is not an isolated incident – it’s part of a broader global tightening in supply, logistics, and safety governance. As one of the industry’s specialized, refined, featured, and original “Little Giant” enterprises, HANYAN Activated Carbon continues to monitor policy and shipping developments closely, ensuring timely updates and reliable supply to global partners.
Related reading: Coconut-Based Activated Carbon · Gold Recovery Activated Carbon · Raw Material Strategy
Article Keywords: coconut shell charcoal, dangerous goods, activated carbon, coconut-based activated carbon, gold recovery activated carbon, IMDG Class 4.2, UN1361, hazardous cargo, activated carbon supplier
