The end of this year brings changes in the prices and availability of Tilapia and Basa. The raw material of both kinds of seafood is experiencing a difficult scenario.
When considering Tilapia, the problems lie at the source: China. The Asian country faces two major problems, ashortage of space on ships and restrictions on the electricity supply. On the one hand, maritime freight, as we have mentioned in previous articles, has increased in price since the beginning of the year. Now, in addition, there is no space in the ships even if the current values are assumed, something that is causing shipments to be delayed for several weeks and even months.
And this is not everything. The availability of Tilapia is also experiencing complications due to energy measures imposed by the Chinese government. The increase in the price of coal has caused the application of severe cuts in the electricity supply. Right now the production activity in many production plants has been reduced considerably, and some of them can only work 2 or 3 days a week. In addition, this is causing inflation in all sectors; in other words, a general increase in prices. In some cases, orders are being canceled because production capacity is lower and they must prioritize.
And there is an added difficulty: finding small-sized Tilapia is becoming more and more complicated. Thus, as a result of all this situation, the supply has been limited and, therefore, prices have risen again.
If we focus on the Basa or Pangasius, the two biggest problems that this seafood is facing are the shortage of space on the ships and the large-sized raw material. As in China, freight from Vietnam also increased in price and, moreover, there isno roomon the ships for the containers that are being produced –not to mention those that are on the waiting list–.
In addition, a Covid outbreak forced the country into a new lockdown that has lasted from 2 to 3 months depending on the area. For this reason, most factories stopped their activity but, since aquaculture had to keep the larvae and fish, Pangasius grew more than usual. The raw material available, therefore, is mainly large sizes.
To sum up, the current increase in demand and the difficulties in finding small-sized products has led to a further increase in prices in this case as well. And the outlook for the coming months is that prices will continue to rise, whereas at the same time it is more and more difficult to get a booking to board.
EASYFISH recommends to review your needs and planning the shipment schedule as soon as possible since it is essential to buy the products quickly.
At the same time, it is necessary to understand the problems that occur in these two origins, China and Vietnam, and try to find solutions together with the partners. In addition, it should be remembered that the prices of Tilapia and Basa will continue to rise until the Chinese New Year, and sea freights will remain equally high.