Chinese ginger export declines because of shipping delays and rising shipping cost

Shipping costs have been rising for months and all around the world. One of the victims of this development is Chinese ginger export. Take the British market for example, although demand is rising, there are not enough shipping containers to transport export ginger and the ports are still trying to work away their backlog. The shipping cost consequently increased. The transport of one standard 40ft shipping container from China to Felixstowe in England used to cost around 1,700-1,800 USD per ton, but that price is now almost 11,000 USD per ton. That is more than 5 times the original cost. Relevant media report that the problems with rising shipping costs, container shortages, and other transportation problems may not be solved until the second half of 2021.

Overseas orders dwindle, not just because of the rising shipping cost, but also because of shipping delays. "Consider the same example, one container used to take around 35 days to reach Felixstowe from China, but now takes 50-60 days. This significantly raises the chance that ginger will spoil during transport. There is a risk that clients will complain about a decline in product quality. But the problem is not with exporters, but with backlogs in overseas ports. Other problems include a shortage of shipping containers available for transport to the European market. This is a result of the ongoing Covid-19 pandemic." This is according to Jason, sales manager at Anqiu Tailai Foods Co., Ltd.

Jason further explained: "Although the export market does not look good at the moment, data from recent years shows that this is unlikely to have any significant impact on the domestic market. The domestic market price of ginger is stable. And because there are some problems with product quality, there is a relative shortage of top-quality ginger, which means that the price of top-quality ginger is still rising."

For more information:

Jason - Sales manager

Anqiu Tailai Foods Co., Ltd.



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