Swimming crab supply may become scarce in the second half of the year

According to the National Oceanic and Atmospheric Administration (NOAA), the U.S. imported a total of 12,092 tons of pike crab from January to May, up 25% year-on-year; and the import price rose month by month, from $11.36/lb in January to $11.83/lb in May.

Indonesia is the largest supplier of pike crab to the U.S., with sales accounting for 48% of total U.S. imports in the first five months; the Philippines ranked third, with sales of 1,242 tons in the first five months, up 100% year-on-year; and Venezuela ranked second, with sales of 1,242 tons, up 5% year-on-year.

U.S. importer JJ McDonnell of Maryland reported that recent limited production of Venezuelan pike has led to a significant price increase.

According to UB data from July 23, Venezuelan wholesale prices for fresh blue crab meat rose to $26.00-$26.75/lb, up 65-70% y/y. A 90-day ban on fishing in Venezuela starting August 15 could lead to a sustained decline in U.S. stocks and continued price increases.

Swimming Crab supply in the U.S. market is tight in the second half of the year, while Indonesia's supply increased sharply in the first half of the year and may slow down in the second half of the year. Indonesian pike production is related to rainy season conditions.

China is currently in the middle of the fishing season and pike crab fishing will start in mid-August, meaning that the first batch of products will not be sent out until the end of August at the earliest. On the other hand, Vietnam's season has just started and the first shipments have already been loaded.

JJ McDonnell said that U.S. importers are also facing other challenges, such as the continued rise in shipping costs. Since the second quarter of this year, the cost of sea freight doubled, and longer delays. In this case, importers are usually reluctant to hold too much inventory, but if the inventory is less than 60 days, they may also encounter out-of-stock problems.