Shanghai’s port is set to return to normal in July following the recent COVID-19 related lockdown of the city, according to Landy Chow, the head of Siam Canadian’s China office.
Shanghai’s port has been disrupted since April, when the Chinese government decided to implement lockdowns in it and 22 other Chinese cities. The port, while operational, was facing severe interruptions due to limited manpower and increased inspections. The lockdowns also caused the postponement of SIAL Shanghai, a business-to-business food and beverage fair typically held in May.
Those lockdowns, however, have lifted, and Chow told SeafoodSource the backlog should be clearing.
“There is a big impact on the import and export,” Chow said. “However, Shanghai closure was lifted on 1 June, people are saying that the backlog due to the closure should be cleared in one month, so Shanghai port should return to normal in early July.”
The lockdown had impacts on imports and exports, but it is difficult to assess to what degree, Chow said. In addition, even though the lockdown has been lifted, some countries are still blacklisted.
“China has blacklisted a lot of factories from Ecuador and India, factories from these two countries are not confident to ship to China, that has an even bigger impact on shrimp import to China,” Chow said.
Seafood sales have overall picked up, according to SMH International CEO Robin Wang told SeafoodSource.
“Products have been selling at supermarket retailers and more often through online platforms, including through supermarket apps, specialty and third-party retailers, and catering institutions,” Wang said. “Shanghai port has resumed full operations so seafood, as well as other foodstuffs, including fruit and meat are seeing more circulation in the city.”
Even with the resumption of normal operation at the port, many goods will still be going elsewhere in China.
“In terms of frozen seafood specifically, the majority will be going to Dalian or Qingdao,” Wang said. “In the short term, there should be more seafood variety and quantities in the offline space for Shanghai.”
Wang said predicting what China’s seafood market – and imports – will look like for the rest of the year is “difficult.”
“Looking at the rest of the year, it will be difficult to say how seafood imports will be,” Wang told SeafoodSource. "Flare ups this year have made it difficult for businesses to obtain an accurate reading on seafood demand, so many have been on the conservative side. However, the government is working hard to launch favorable business policies and provide promotions to incentivize consumer spending, hoping to drive positive growth for the year. With the summer months coming, and domestic tourism already showing growth during the recent May and June holidays there is a lot of momentum and potential for HRI sector growth.”
Photo courtesy of Patrick Foto/Shutterstock
