GWM China Fruit Import Update: Blueberries, Week 53/2015

Again the most notable event has been another large arrival of Chilean cherries, Santa Ines had a more significant impact on the market compared to Santa Rita entirely due to supply, volumes onboard were 3x larger. Supply is not expected to decrease in the next 4 weeks as exporters rush to meet the build-up of Chinese New Year demand. Although both buyers and sellers focus is on Chilean produce there has been increasing arrivals of Peruvian Red Globe, which have been followed by limited seedless from South Africa and dwindling Red Globe from the U.S.

Blueberry prices continued to decrease in week 53 with increased air-freight affecting the east of China while the first containers of sea-freight pushed prices downwards in both Guangzhou and Shanghai. Air-freight prices in the east and south of China were in constant flux with Shanghai market starting at a lower price level compared to Guangzhou. Generally high quality air-freight priced similarly to the same quality sea-freight, although most air-freight has been said to have a better firmness. Opportunistic exporters of air-freight will need to factor in the addition logistics costs to see if it is worthwhile to risk additional departures.

Good quality blueberry air-freight in Shanghai by the start of week 53 was at between ¥180-190 (1.5kg) while Guangzhou was asking in the range ¥200-210 (1.5kg). By the end of the weekend once sea-freight had been opened in both markets good quality blueberries showing well covered bloom, sound firmness and consistent colour asked between ¥150-160 (1.5kg) in Shanghai and slightly higher at ¥150-170 (1.5kg) in Guangzhou. Some problematic arrivals could already be found priced at ¥100 (1.5kg).

Till week 52 blueberry airfreight was up 88% at 733k cartons being sent to China. Sea-freight on the other hand is markedly down to date at 1 million cartons till week 53 which is a decrease of 59% year on year. Once departures in week 53 are fully updated it will likely narrow the gap. An increase of airfreight supply to Shanghai market (also surrounding areas) impacted price level in weeks 52/53 from the short lived higher prices of week 51.

Image source: Pixabay