Hebei province, one of the major pear production areas in China, already suffered from extreme weather conditions during the growing season. The production volume significantly declined. That is why the export price is much higher than last year. The high price already reduced the export volume of Chinese pears. On top of that, the Chinese yuan rose in value and the shipping cost increased too. These developments further stimulated the export price. The abnormally high export price has caused the export volume to drop. The export of Chinese pears to some countries declined by as much as 70%-80%. Developing countries in particular can not afford the rising price of Chinese pears. They have no other option but to halt their purchase orders.
The transport cost has been on the rise for several years now, but such an explosive growth as this year has seen is unprecedented. There are several reasons for this sudden rise, but the main factor is the Covid-19 pandemic. China is an important supplier for the international market and requires a large volume of shipping containers. Recently, however, the turnover in shipping containers has slowed down because cold storage containers require disinfection before they can be used again. This slows down the entire process and puts pressure on transport companies. Shipping containers are not easy to find these days. Another important cause for the rising price of transport is the need for shipping companies to make a profit under difficult circumstances.
"The current situation is extremely awkward for suppliers and exporters alike. Foreign buyers are forced to deal with high prices, but the market can not accommodate the sudden price surge. The only way exporters can sell their products is to keep the price low enough for buyers to afford, but this eats into their own profits. Exporters can not afford to keep lowering the prices either." This is according to Mr. Gavin Bian of Hebei Tianbo Trade Co., Ltd.
"Some exporters shift their attention to the domestic market, because overseas markets can no longer absorb their supply volumes. However, prices in the domestic market quickly drop as a result of excessive supply. Traders encounter difficulties no matter where they turn. We are relatively fortunate. Our sales conditions are not that bad. We maintain our share in the export market while we simultaneously expand our activities in the domestic market," said Mr. Gavin Bian.
For more information:
Mr. Gavin Bian
Hebei Tianbo Trade Co., Ltd.
Tel.: +86 135 8219 8678