Rising shipping costs are one of the main concerns for importers and exporters in the international market. The worsening Covid-19 pandemic is already a disaster for importers and exporters, and its impact on transport costs makes the situation even worse. Christmas and New Year's are traditionally peak periods for sales, but this year is decidedly different.
Workers select garlic
Garlic processing factory
The impact of the rising shipping cost and the shipping container shortage is already apparent in the Chinese garlic export market. "The export price of Chinese garlic significantly increased because of the rising shipping cost. As a result, the overall export volume declined. This is on the one hand because the export price was already quite high, and buyers became even more careful when the price began to rise again. And on the other hand, the second lockdown in many European countries only increased the uncertainty in the European market. Some buyers prefer to wait and see what happens next." This is according to Mr. Lee of Pioneer Garlic Group.
Garlic processing factory
The garlic export price rapidly increased in the last 2-3 weeks, but the price is currently quite stable. The price even showed a slight decline. The falling export volume affected the confidence of traders with stock in storage. Some suppliers are so worried about future developments in the garlic market that they have begun to sell garlic in large volumes. They add to the overall supply volume in the market, which pulls down the export price.
Garlic processing factory
According to Mr. Lee, "although the order volume declined, the number of clients is more or less the same. Chinese garlic remains strong in the international market, whether in terms of price or export volume. We mainly export our garlic to the Middle East and Europe. Christmas is soon upon us, and we expect the garlic export volume to grow again. This year, however, the outbreak of Covid-19 has disturbed regular patterns. The overall export volume did not grow as much as we expected.
For more information:
Mr. Lee
Pioneer Garlic Group
Website: www.freshgarlic.cn
Tel.: +86 537 8772 726
Mobile: +86 155 6239 7099
E-mail: manager@freshgarlic.cn