The Chinese market for imported seafood remains volatile, with “extreme delays” at ports, while costs have risen due to COVID-19 checks at customs, according to Robin Wang, the CEO of Shanghai-based seafood marketing agency SMH International.
“We are definitely seeing the costs being passed down the supply chain, down to the consumer. With varying levels of costs assessed per container by China’s different ports cost increases have of course varied as well,” Wang told SeafoodSource. “After a down year, companies are looking to stay operable and all are charging higher prices.”
China requires testing of each shipment of seafood, with the costs for nucleic acid testing and disinfections – which must be certified before imported seafood can be sold to Chinese consumers – often running USD 200 (EUR 170) per shipment, according to sources surveyed by SeafoodSource.
“China’s oversight of frozen products remains strong overall,” Wang said. “Many importers are still cautious and have a wait-and-see attitude. There are still many containers waiting to go through the requisite customs procedures, so while prices may be cheaper, the overall situation is still not yet ideal, with extreme delays.”
While China “continues to take positive steps” in managing the virus, “it may likely even take more time before they are significant changes to frozen imports,” according to Wang.
In Hong Kong, traditionally the biggest regional city market for seafood, “conditions are still difficult,” said Benjamin So, managing director at seafood import firm 178 Degrees, which focuses on products from New Zealand.
“Although demand is steady overall, what is challenging is the unpredictable fluctuations in purchasing behavior,” So told SeafoodSource. “We've chosen to keep prices steady, or in some cases raise them slightly to account for the increase in the New Zealand dollar and freight rates.”
Meanwhile, despite lowered tariff rates on certain imported seafood products – frozen salmon and crab saw their rates lowered from 7 percent to 5 percent beginning on 1 January – demand hasn’t picked up in mainland China, Wang said.
“We are always optimistic that lower duties will encourage importers to bring in more seafood,” he said. “However, we have not noticed any significant growth in imports for cod, pollock, salmon, nor received any strong indications of future product purchase.”
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