Overseas market demand remained high, garlic export volume was not affected

The cost of short distance shipping in Asia has increased nearly five times, and the cost of routes between Asia and Europe has increased by 20%

In the past month, the soaring shipping charges have made export enterprises miserable.


The new garlic has been planted for about a month, and the planting area has been reduced, but the estimated output depends on the weather conditions in the next two months. If garlic production is reduced by freezing in winter, the price of garlic may rise in the later stage. But prices should not change significantly for at least the next two months.

inner_news_normal_garlic_20201122_01In terms of export, in recent months, the distribution of shipping containers in the world is seriously uneven, especially in the Asian shipping market. In addition to ship delays, the shortage of containers in Shanghai, Ningbo, Qingdao and Lianyungang has intensified in the past week, resulting in chaos in booking. It is understood that the reason why some ships are not fully loaded when they leave Chinese ports is not because of insufficient cargo, but because the number of available refrigerated containers, especially 40 ft refrigerators, is not large.


This situation has led to a series of problems. Some exporters are hard to book shipping space, but can not see containers or be informed of temporary price increases. Even if the sailing time is normal, but the cargo will be crushed in the transit port. As a result, importers in overseas markets cannot receive goods on time. For example, three months ago, the shipping cost of less than 10 days from Qingdao to Malaysia’s port of baang was about $600 per container, but recently it has risen to $3200, which is almost the same as the cost of a 40 day long voyage from Qingdao to St. Petersburg. Shipping costs at other popular ports in Southeast Asia have also doubled in the short term. Comparatively speaking, the increase of routes to Europe is still in the normal range, which is about 20% higher than usual. It is generally believed that the shortage of containers is due to the reduction of import volume under the condition of flat export volume from China to overseas, which leads to the failure of refrigerators to return. At present, some of the larger shipping companies are not in short supply, especially in some smaller ones.

The increase of sea freight has little effect on garlic suppliers, but it increases the cost of importers. In the past, the export to Southeast Asian countries was mainly CIF, but now most companies in the industry dare not quote the price including freight to customers, and they have changed to fob. Judging from our order quantity, the overseas market demand has not decreased, and the local market has gradually accepted higher prices. According to industry sources, the second wave of public crisis has had a great impact on the shipping industry. Container shortages will continue in the coming months. But we, at present, the shipping price has been ridiculously high, and there is not much room for increase.

Henan linglufeng Trading Co., Ltd. is specialized in the export of agricultural products. In addition to garlic, the company’s main products include ginger, lemon, chestnut, lemon, apple, etc. The annual export volume of the company is about 600 containers.

Post time: Nov-22-2020