Shipping costs temporarily stop rising, but that will not affect the market in the short term

Export price of Chinese garlic rose by 45% compared to last year

"Cold storage garlic entered the market in September. The overall price was stable for most of the month, but started to rise around Mid-Autumn Festival [21 September, 2021]. The ratio of cold storage garlic in the garlic market continues to grow every day. There is more than enough garlic in storage. The overall export price of Chinese garlic increased by 45%, primarily due to rising shipping costs." This is according to Ms. Annie Chen of Jining Fenduni Foodstuff Co., Ltd.

Many buyers delay purchasing garlic because of the rising shipping cost. They hope the price will fall, and then they will start buying their garlic. This phenomenon is so widespread that some garlic processing factories have had to return their processed garlic products to cold storage until orders can be shipped. This puts a lot of pressure on storage facilities. When products stay in storage for a long time, there is a growing risk that buyers cancel their orders. This will undoubtedly affect the export volume of Chinese garlic.


The sky-high prices of shipping grow more serious every day, and some countries have begun thinking about supervision of the industry. Many major shipping companies chose to freeze their prices in the middle of September. But 'frozen prices' only apply to the base price, not to surcharges, and the additional costs have gradually turned into the heaviest burden for traders.

For most traders the temporary freeze of shipping costs will have no short-term impact on the market. Furthermore, the situation has become so uncertain that most exporters are unable to provide accurate prices, and that, of course, raises the risks of export trade.

According to Ms. Annie Chen: "The price increase of shipping costs is much higher than the price increase of export garlic. Compared to last year the export price rose by 45%. Even though shipping companies announced a price freeze, the situation has not stabilized, but only grown worse. Moreover, cabin space is difficult to secure as there is a shortage of shipping containers. This problem will not be solved before the end of this year. In addition, poor weather conditions may affect the last stage of the garlic planting season, which will push the price up. In other words, clients would be better off ordering sooner rather than later."

For more information:

Ms. Annie Chen - Sales Manager

Jining Fenduni Foodstuff Co., Ltd.

Skype: fenduni5 

WhatsApp: + 86 18678710377 

WeChat: + 86 18678710377 

Viber: + 86 18678710377 




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