The price of domestic bananas recently increased at a steady pace, and the price of imported bananas suddenly increased by 20%. What happened?
First reason: peak consumption
Consumption goes through the roof in overseas markets during the season of Thanksgiving, Black Friday, and Christmas. China does not lag behind when it comes to import in the season of Double Eleven [November 11th], Double Twelve [December 12th], and New Year. Importers hurriedly accumulate stock.
Second reason: oil price increase
As the oil price increases, so does the cost price of transport. This year the oil price increased by as much as 35%, which means that transport became more expensive, and thus the price of import products like bananas also increased.
The increased oil price increased the cost price in transport for international shipping companies and domestic flights alike, and companies are pressured to shift that cost to maintain their profit margin. A representative of Maersk stated that a new oil surcharge will come into effect on January 1st, 2019.
In sum, increased transport cost also increased the price of import products, which was exacerbated by peak consumption. The price of bananas is likely to increase even further in the near future.