Rising shipping costs and the appreciation of the Chinese yuan both had an impact on the export conditions of many Chinese agricultural products. In the last few weeks the price of Chinese ginger came down. Mr. Wang Junjie, Sales manager at Jining Shangzhuo Food Co., Ltd., recently talked about current conditions in the ginger export market.
"The price of Chinese ginger has shown a downward trend in the last two weeks. The current FOB price of ginger shipped from Qingdao to Rotterdam is around 1,260 USD per ton. Although the price is coming down, overseas buyers are still not actively placing orders. Apart from some demand in the Middle East, there is very little response from Europe and North America," said manager Wang.
"The main reason for this situation is the rising shipping cost. The fee of Maersk containers increased by 3,000 USD. And many ports across the world experience backlogs that further add to the uncertainty in this industry. Shipping containers often arrive late, sometimes as much as 10-15 days. And there is a shortage of labor. All of these factors slow down the movement of products, add to backlogs, and increase delays," said manager Wang. "In addition, the price of Brazilian and Thai ginger is very low this season, which has a serious impact on the competitive market position of Chinese ginger."
As for garlic, China enjoyed an abundant harvest this year. Production volume and product quality are both ideal. The average size of Chinese garlic is rather large this year. Nearly 20% of the production volume falls within the 4.5#-5.0# range. However, the price has been rather low since the season began in May. The current price of 10-kg mesh bags full of garlic shipped from Qingdao to Rotterdam is around 978-1,084 USD per ton. Still, the spread of Covid-19 is not yet brought under control in all overseas markets and some countries still implement lockdown measures that slow down garlic trade. The market is still weak and importers are not very active.
Jining Shangzhuo Food is an export company specialized in garlic, ginger, and onions. The company has an annual export volume of more than 2,000 shipping containers.
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Mr. Wang Junjie
Jining Shangzhuo Food Co., Ltd.