The global shipping shortage began to slightly improve in October. The shipping fees are stabilizing, and just in time for the start of the cherry season. Thomas Wang, spokesperson for Shenzhen Cool Chain Logistics Co., Ltd., recently shared his view on current trends in the global distribution of fruit and vegetables, as well as his predictions for the new cherry season.
Shipping fees are stabilizing
"The international shipping industry has been chaotic for more than a year now, but has recently begun to stabilize. The rise of shipping costs is now much smaller than before. Various shipping companies have already announced lower shipping fees. Moreover, the shortage of cargo space is not as serious as before," said Thomas.
"However, shipping speed is still very slow. That is one of the main challenges for the industry at the moment. Although the outbreak of Covid-19 is largely brought under control in China, across the globe there are still frequent recurring outbreaks of Covid-19. Many ports only allow ships in after strict inspections. A single ship can easily be delayed for 3-4 days in every port of call. And the delays cause uncertainties in shipping periods that in turn create backlogs in various ports. These backlogs are sometimes serious enough that containers have to remain on board until storage space on the docks opens up. Importers have no guarantee when their products arrive, and that has a huge impact on the import and export industries."
In China the outbreak of Covid-19 is largely under control. Conditions are improving. The customs agency assigned additional personnel to various ports and optimized the quarantine and inspection procedures. Although the rate of clearance at customs is not as fast as prior to the outbreak of Covid-19, conditions have much improved since last year.
The price of air-freighted cherries declined compared to last year The Chilean cherry season has begun. The first, small supply volumes arrived in China by airplane. "We have flown in some cherries as well. Last year the start of the cherry season coincided with the height of the pandemic. Prevention measures greatly affected air traffic last year, and so the price of air-freighted cherries was rather high. This year the cost price of air freight is relatively stable. And some importers already adapted to the high prices of last year."
Thomas also shared his predictions for this season from a distribution point of view. "The import volume of cherries was huge in the beginning of last year, but the cherry incident made them largely unmarketable. This year the conditions are better, and the outbreak of Covid-19 is largely under control in China, but not in Chile. Moreover, ports are still struggling with backlogs that affect fresh produce more than other import products. That is why Chinese importers remain careful. The import volume in the beginning of the season is not as large as last season."
"Chinese consumers became familiar with premium domestic fruit products during the pandemic. Domestic fruit does not have to pass through customs and therefore avoided many of the added problems during the pandemic. Suppliers were better able to guarantee delivery times. And consumers had plenty choice of high-quality, low-priced fruit. Import fruit suffered by comparison. But we are carefully optimistic for import cherries this season."
Shenzhen Cool Chain Logistics Co., Ltd.
Cool Chain Logistics is a distribution company specialized in global cold supply chain services for fresh produce. When asked about the advantages of Cool Chain Logistics, Thomas Wang replied, "we rely on a mature and well-developed global network to provide our clients with packaging, cold supply chain management, fumigation, overland transport, customs clearance, international sea freight and air freight, as well as administrative support for import such as quota applications and customs clearance documents.
"We also offer exporters our national network of distribution points to provide our clients with storage space, refrigerated overland transport, product collection, customs clearance, international sea freight and air freight, and cold supply chain management. In addition, Cool Chain Logistics also offers clients comprehensive services for purchasing agents, retail agents, and trade agents, as well as comprehensive information services for importers and exporters."
For more information:
Mr. Thomas Wang
Shenzhen Cool Chain Logistics Co., Ltd
Tel.: +86 13924653925
E-mail: thomas@coolchainlogistics.com