Last week, the US Department of Commerce announced the final anti-dumping and countervailing duties on imported shrimp, Ecuador became the biggest winner, the total tax rate dropped from 13.47 percent to 3.78 percent, and India's shrimp tax rate as high as 5.77 percent.

For the US market, the risk of uncertainty is basically lifted, Ecuador has regained its absolute import competitive advantage, and demand is expected to grow further.

Between 2019 and 2021, U.S. imports of shrimp products increased by 28% to nearly 1 billion pounds per year, with both retail and restaurant demand expanding. Then entered three consecutive years of recession, the market oversupply, 2021 to 2023 imports fell 12%, as of August this year, the cumulative import decline is still 5%.

Ecuador is the only country to have seen an increase in import trade over the past two years, at an annual rate of 12%. Amid rising interest rates and oversupply, U.S. businesses have kept inventories as low as possible in the past two years, reluctant to take on too much risk.

The current US inventory is at a low level, and the announcement of the double reverse tax rate does not mean that the US market has completely reversed. The seafood importing industry is different from other food sectors in that the U.S. seafood consumer market is extremely dependent on imports, and any supply chain challenge can bring significant volatility to the market.

Today, the US wholesale market has formed a bullish tone, rising prices will be the main theme for some time, after the double reverse tax rate landing, the annual supply gap is expected to be covered, importers are willing to buy on the rise. However, the cost of container transportation in North America is still high, and the cost of cold storage is relatively high, and the financial pressure on importers has not been completely alleviated.

Last week, Ecuadorian headless white shrimp in shell were sold in the US wholesale market at the following prices: 21-25 heads /lb at $4.15/lb, 31-35 heads at $3.75/lb; The price of the head with the shell is $2.95/lb for 40-50 heads and 2.80/lb for 50-60 heads.