Tilapia is in short supply,the Red Sea crisis could worsen the supply situation

From the end of 2023, China's tilapia supply faced a crisis of shipping in the Red Sea and a shortage of raw material supply.

China's tilapia industry had long faced raw material shortages. From December 2023, supplies of tilapia in southern China was becoming tight. At present, most enterprises in Hainan are unable to accept more orders. The situation in Guangdong could be even more severe. Especially as temperatures have dropped sharply recently, continued cold winter weather is likely to affect raw material supplies in the first half of next year.

At present, the price of tilapia is still high, and the price of 500-800g of tilapia in Hainan is still more than 10.00 yuan ($1.40)/kg, reaching 10.40 yuan/kg as of December 18. Some customers have begun to acknowledge the reality of rising raw material costs, and most tilapia factories had orders to guarantee business operations until the Lunar New Year on February ,10th.

Still, exporters will face another challenge: the international shipping crisis in the Red Sea lanes. Houthi militants in Yemen have stepped up attacks on commercial vessels transiting the Red Sea and Suez Canal in recent weeks in response to Israel's continued bombardment of Gaza. Oil tankers and cargo ships have been targeted by drone and missile attacks launched from Yemen, and while in most cases causing minimal damage, the threat alone has brought trade routes through the Red Sea to a near standstill. At least four international shipping companies, including German shipping company Herokt and Denmark's Maersk Line Group, have announced they are suspending operations in the Red Sea.

Despite the maritime transport challenges, orders in Europe and the Middle East have not been affected.