“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.” The information comes from the office of Jining Fenduni Foodstuff Co., Ltd., Ms. Annie Chen.
The rising shipping costs have caused many buyers to delay purchasing garlic. They are hoping the price will drop so they can buy their garlic. Several garlic processing factories have had to return processed garlic to cold storage until orders can be filled. Storage facilities are put under great pressure because of this. The risk of buyers cancelling their orders grows when products are stored for a long time. The volume of Chinese garlic exported will undoubtedly decrease as a result.
Shipping prices continue to rise, and some nations are considering regulation of the industry. The shipping industry chose to freeze its prices mid-September. “Freezed prices” apply only to the base price, not to surcharges, and this “additional cost” has slowly become the most burdensome part of trading.
The temporary freeze of shipping costs won’t have a significant effect on the market in the short term for most traders. Additionally, due to the uncertainty, most exporters are unable to offer accurate prices, something that poses a risk to export trade.
“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.” Ms. Annie Chen continued.
For more information:
Ms. Annie Chen – Sales Manager
Jining Fenduni Foodstuff Co., Ltd.
Skype: fenduni5
WhatsApp: + 86 18678710377
WeChat: + 86 18678710377
Viber: + 86 18678710377
E-mail: annie@china-garlic.com
Website: www.garlics.com
Website: www.china-garlic.com
