There is a shortage of shipping containers and this drives the price of shipping up. Many Chinese honey pomelo exporters are gradually slowing down honey pomelo export because of this development. The honey pomelo season is expected to finish 5-6 weeks earlier than last year. Manager Wen, a spokesperson for Pinghe County Li Peng Fruit Industry Co., Ltd., recently talked about current conditions in the Chinese honey pomelo industry.
Manager Wen first mentioned the conditions in production areas and distribution networks: "The weather conditions were good in honey pomelo production areas in Fujian. The production volume and product quality are both great this year. The Pinghe honey pomelo are large on average and the supply volume is more than sufficient. However, the European market prefers small honey pomelo. That is why only a small portion of the honey pomelo were suitable for export to Europe.
"As for distribution, a shortage of shipping containers started in China in late October. Many Chinese ports had a severe shortage of refrigerated shipping containers for export. This disrupted the shipping industry as some traders had booked cargo space but could not get their hands on shipping containers. Furthermore, the transport cost for export to Europe increased by as much as four times in only a few months. Many Chinese honey pomelo exporters were forced to halt export because of these problems. We still have some fresh honey pomelo in our warehouse. If the shipping cost comes down to a reasonable level in January, then we will consider opening up again for the export market."
Many Chinese honey pomelo exporters already had to change their export strategy because the Russian government placed restrictions on Chinese citrus export to the Russian market. Many exporters shifted their attention to Europe instead.
"However, the competition for honey pomelo export to Europe was not as intense as some people expected. This is mainly because of the spread of Covid-19 in overseas markets. Some overseas buyers are hesitant to import, especially from new suppliers or small-scale suppliers. Larger companies with an established name and market influence continued exporting as usual," said manager Wen.
A growing number of overseas buyers prefer environmentally-friendly packaging. Chinese exporters have significantly reduced the amount of plastic used in honey pomelo packaging. "We eliminated the traditional plastic netting and plastic ribbon on the outside of the pomelo, and we only keep the plastic packaging that protects the fruit from insect pests and slows down deterioration. We have reduced the volume of plastic by 60%. I think that companies with the ability to optimize packaging are the companies that will stand out in the market," said manager Wen.
Pinghe County Li Peng Fruit Industry is established in the heart of the honey pomelo production area in Pinghe county. The company owns an orchard that covers an area of 120 hectares. The orchard is GAP certified. "We have worked hard and continue to work hard to improve product quality. We maintain strict standards in plantation management, harvesting, storage, and packaging. We are also investigating the possibilities in sustainable packaging. We want to use more environmentally friendly packaging material, while we continue to ensure that our fruit remains fresh."
For more information:
Wen Mindong - Manager
Pinghe County Li Peng Fruit Industry Co., Ltd.
Tel.: +86 592 5314 087
Tel.: +86 189 6511 5427