China’s national power cut policy hits the production of the seafood industry so hard and it seems china seafood exporter is having a long break. Many of the factories can only afford half of the production. This low production condition is relevantly affecting the freight.
According to the Freightos Baltic Global Container Index (FBX), just after the power cut, the freight rate from Asia to the West Coast of the United States dropped to US$16,153 per feu last Thursday, a decrease of US$3,029 from 7 days ago. During the same period, from Asia to the east coast of the United States, it fell by US$3,523 to US$18,711 per feu.
After the golden week, today, the price starts to increase a bit after the significant drop a week ago. Asia-US West Coast prices increased 4% to $16,749/FEU. Asia-US East Coast prices also climbed 4% to $19,429/FEU.
It could be good news for China Seafood exporter.
Tilapia situation from China Seafood Exporter
For tilapia raw material and production situation, the factories are facing big issues for workers. With the current power cut, many workers can not have enough volume to process (The worker’s salaries are counted by production volume), which means they earn less than before. Many of them quit and find new jobs. China factories now hold around two-thirds of their workers. Still, some of them keep reducing the number of workers. The early shipment for tilapia is at the beginning of December. And for the size, the small size is quite limited.
High demand will last, unit price will increase
The Demand from the USA and EU are still solid. There is no signal that the strong demand for logistics will loosen. According to the general situation, the unit price of the seafood products will gradually increase while the freight will also increase but slightly uptrend. This whole process will at least last till the end of the 2022 new year. Ocean Treasure as a leading seafood exporter in China, we see that the market is still very active.