Despite the impact of the COVID-19 pandemic on global supply chains and international trade, Chinese consumer demand for lobsters is "still strong". According to the 2021 Lobster Industry Report released by Global Trade Service Platform Tridge, China's lobster imports exceeded US$1.3 billion in 2020. According to foreign media reports, in the first 11 months of 2021, the United States alone exported more than 6 million kilograms of lobster to China, an increase of about 6% over the same period last year.
China's import demand for live lobster continues to rise
Recently, John Sackton, an industry analyst and founder of Seafood News, a North American seafood industry news network, told Red Star News that China's live lobster imports last year accounted for about 60% to 70% of all live lobster exports in North America, which is about twice as large as the entire European region. In recent years, lobster has become a popular delicacy during Chinese Chinese New Year's Eve meals. On the eve of the Spring Festival in 2022, Sackton expects lobster consumption to enter the peak season, and Chinese consumer demand for lobster "will be as strong as last year, or even higher."
Bill Bruce, business manager at The Lobster Co. in Maine, said the pandemic has made it harder to ship live lobster overseas, and despite the difficulties, "we're ready, we've recruited enough employees, and Lobster exporters in Maine are stepping up their supply for the Chinese New Year."
Approximately 6% increase over the same period last year
China's demand for U.S. lobster has not decreased
According to reports, in the past decade, the consumption level of Chinese people has been increasing day by day, and the demand for lobster imports has "grown exponentially". On the one hand, with the increasingly close international economic and trade exchanges, the rapid development of China's cold chain logistics and the continuous acceleration of the process of national customs clearance integration, Chinese consumers can conveniently purchase live lobsters from channels such as retail supermarkets and e-commerce platforms. On the other hand, there is a saying that the cooked lobster is a red color symbolizing "prosperity", especially during the Spring Festival, which is loved by Chinese consumers.
As consumption levels have increased, China's demand for imported lobsters has continued to be strong during the pandemic
Currently, China mainly imports lobster from the Atlantic coastal provinces of the U.S. states of Maine and Canada. According to the surging news, since 2012, the Supply of American Crayfish (i.e. Boston Lobster) began to exceed demand, resulting in a sharp decline in north American lobster prices, and during this period, the shortage of Australian shrimp fry began to reduce production. Since then, the proportion of lobster imports from Canada and the United States in China has continued to rise. According to statistics, in the five years from 2012 to 2016, Canadian lobster exports to China increased by about 298%. The United States shipped more than $140 million of lobsters to China in 2017 and 2018.
As of July 2021, China's imports of American lobster have exceeded the average of 2020 and five years (According to Tridge)
"In the years leading up to COVID-19, Boston lobsters were relatively cheaper than Australian lobsters. And Boston lobster is sold in supermarkets and restaurants, online shopping platforms will be delivered to the home through express delivery, and more and more people are starting to buy lobster from North America. Sackton introduced to Red Star News. It is reported that in 2019, more than 95% of the products of Australia's lobster export industry were sold to the Chinese market, especially in western Australia, where the Chinese consumer market accounted for about 98% of its average annual catch. However, since October 2020, after a series of australian imports have been found to violate inspection and quarantine requirements, in order to protect the health and safety of consumers, the mainland has begun to conduct stricter customs inspections for lobster imported from Australia.
Since 2020, lobster from North America has gradually become the "main force" on the table of Chinese consumers, and the solid demand in the Chinese market has even allowed the north American lobster export industry to withstand the environmental problems of lobster fishing and the impact of the new crown epidemic. The 2021 Lobster Industry Report shows that since the outbreak of the new crown virus, the multinational catering industry has been affected by the epidemic, and the commercial export value of almost all lobsters has declined, except for live rock lobster (Live Rock Lobster). The data shows that in 2020, China's live rock lobster import market share exceeded 90%. By 2021, the lobster export industry in North America has seen a significant recovery due to the reopening of the catering industry and the still strong retail demand in the Chinese market. While exports are down from their all-time highs in 2018, they are well above $100 million.
John Sackton, an industry analyst and founder of Seafood News, a North American seafood industry news network
According to statistics, in the first 11 months of 2021, the United States alone exported more than 6 million kilograms of lobster to China, an increase of about 6% over the same period last year. According to data from SEABRIDGE MARKETING, from January to October 2021, China's live Boston lobster imports increased by 89.1% year-on-year, of which imports from the United States increased by 210.9% year-on-year and imports from Canada increased by 71.7%. For the upcoming Chinese New Year, Sackton told Red Star News that lobster consumption in the Chinese market is expected to be as strong or slightly higher as during the 2021 Spring Festival, and "there are signs that this will be a peak season for lobster sales."
Staff shortages, transportation problems
North American lobsters have to overcome difficulties in Chinese New Year's Eve dinner table
However, North American lobsters will have to overcome many difficulties to reach the Chinese New Year's Eve table in Chinese New Year's Eve, China. The Food and Agriculture Organization of the United Nations (FAO) notes that the key problem facing lobster fishing in Maine this year is the lack of bait. Fishermen usually sink lobster cages filled with bait to the bottom of the fishery, and herring is the preferred bait in this area. However, the herring catch quota has been reduced to 4.8 tonnes, compared to 17.7 tonnes in 2019. Because herring catches can't meet the needs of shrimp bait, Maine fishermen have had to look for alternative bait materials. On the other hand, the recent winter storm sweeping through the eastern region of the United States has made the supply chain crisis in the United States even worse. In order to smoothly send live lobsters to China thousands of kilometers away, fishermen in North America must catch lobsters in the cold waters of the Atlantic Ocean. Christan Porter, head of the Maine Fishermen's Association, said bad weather this year has made fishermen's situation more difficult than in previous years.
Fishermen usually sink lobster cages filled with bait to the bottom of the fishery grounds
In addition to fishing difficulties, the COVID-19 pandemic has had a huge impact on the processing and transportation of seafood in North America. Canada is the largest lobster processor and exporter, and some of the lobster caught by U.S. lobster fishermen in New England will also be shipped to Canada for processing and export. However, Sackton told Red Star News: "The serious problem with the COVID-19 pandemic is that some lobster processing plants cannot operate at full capacity, either because employees are sick and face the risk of temporary closure, or because the cost of quarantine for overseas workers is too high to recruit enough workers." ”
Mike Turkistas, chief executive of Truefoods, a food exporter in Massachusetts, said shippers had to turn to shippers for a lack of air cargo due to many flight groundings, and exports of food and seafood had to turn to shippers. At the same time, the shortage of truck drivers in the United States has also made transportation problems a "bottleneck" that is difficult to solve in the supply chain crisis. The American Freight Forwarders Association predicted in October 2021 that the shortage of truck drivers in the country has reached an all-time high of 80,000.
Demand for refrigerated or refrigerated truck transportation this winter has "remained hot" and even has an upward trend
"Not only has covid-19 caused serious losses to shipping companies, but the shortage of truck drivers has also made transportation costs higher and higher throughout the United States." "Many drivers have their own trucks and charge for miles traveled, and they recently had to wait 8 hours in crowded warehouses to get paid," Sackton noted. As a result, many drivers quit their jobs to do other, higher-paying jobs. These logistical obstacles have stuffed sand on the gears of the international seafood trade. ”
Sackton added that due to epidemic prevention and safety measures, customs clearance and inspection and quarantine regulations for food and seafood are becoming increasingly stringent, and many lobster exporters are taking more measures to catch up with the "peak sales season" of the Chinese New Year. Sackton also told Red Star News: "The biggest change in transportation measures this year is that lobster exporters in North America are starting to ship to different airports across China. If a city slows down seafood imports because of strict inspection regulations, it may opt for airport entry in another city. ”
Lobster exporters in Maine say they are stepping up their supply for the Chinese New Year
FreightWaves, a North American freight intelligence firm, noted last week that in this "traditional off-season" of refrigerated trucking, demand for refrigerated or refrigerated truck transportation has "remained hot" this winter, and even has an upward trend. Bill Bruce, business manager at the Maine Lobster Company, said the outbreak has further made it harder to ship live lobster overseas, "the transportation of the past few years has always been lucky, but this time we are ready, we have recruited enough employees", Maine lobster exporters are stepping up to supply for the Chinese New Year.
Red Star News reporter Wang Yalin Intern reporter Hu Yiling
Edited by Guo Yu
(Download Red Star News, there are prizes for the newspaper!) ）