Chinese seafood export situation due to the pandemic in July is not very optimistic, Ocean Treasure summary the situation for August.
China has the biggest market for tilapia. And also the fish ban is over recently, so for red shrimp, pink shrimp, squid, mackerel and other sea caught fish, the raw material will be sufficient soon. Still, the biggest problem for China is the freight cost and the potential orders (the orders that waiting for the freight cost stable and price stable before)
Raw material for a tilapia price increase so fast
For farm fish, especially tilapia, currently raw material from Hainan 9.2 RMB/kg, from Guangdong 9.5 RMB/kg, but after typhoon and over-harvesting, the fish in this couple of days becoming much less and shortage, so the prediction is price may go up to 9.8-10.2 /kg by 6.5%-7.3% increase only for the raw material, which never has been there for this fish.
Orders are increasing due to the peak season, some clients can’t wait for more
Many long-term or big orders from the USA recently comes back because they can’t wait for the freight and raw material prices to go down, they must purchase now for the peak season_ Christmas. If they don’t order now, they can’t catch the season profits. At this point, the other market will be in big competition with the USA demand. This could affect the final price of the products.
Freight cost keeps increasing for all the market
In August, the freight cost will have another 2000$ increase for most of the shipping line. Hot shipping lines need to book the container one month in advance. But still, we even need to bid for the container, and the price is super high.
August prices predict level:
To the USA now is averagely 15000$-21000$ for the west, 18000$-23000$ for the east. Hot ports like LA and Miami, even over incredibly 30000$
To EMP now is averagely 17000$-22000$
To Africa now is averagely 14000$
The pandemic situation in China now is hard to predict
Since the outbreak in Nanjing for the Delta Variant, China starts the restriction in some areas. Some new cases have been found in other provinces, and this might affect some seafood processing plants because if more cases are found, there might be another lockdown coming especially for the frozen food section. And this could be a big problem for the exporting market.