CHICAGO, July 5, 2022 /PRNewswire/ — "Lysine is essential for animal health, yet the product, which is primarily manufactured in China, has remained in short supply across North America since this pandemic started in 2020,’ observed Gary Rain, President of Anitrition Biotech, a lysine distributor in Chicago.
There seems to have been little improvement in this situation. As a result of China’s zero-Covid lockdowns since March of 2022, hundreds of container ships have remained in the area around Shanghai Port. In the US, port congestion in Long Beach and Tacoma has continued into this year, which exacerbates the lysine shortage across North America.
"A client ordered one container load of lysine from China and the shipment was scheduled for February 2022; unfortunately, the container arrived at Chicago in the middle of June," said Lincoln Hugh, President of All Miles Transport, which has been shipping lysine from Asia for American importers.
However, there is a positive trend. According to Mr. Hugh, Chinese lysine manufacturers and exporters began to shorten supply chains in September of 2021, including warehousing of the product in the US. "In April 2022, the first shipment of lysine arrived in Foreign Trade Zone #271 in Savannah, IL, aimed at supplying midwest animal feed manufacturers," as Mr Hugh noted.
More recently, Chinese lysine exporters and manufacturers have begun to build lysine inventory in Chicago. In June alone, Anitrition Biotech received container loads of three famous Chinese brands: Golden Corn, Fufeng and BBCA. "We store these brands in our climate-controlled warehouse in Libertyville, IL, and we can readily ship out any of the three brands to our customers in America and Canada," said Mr Rain.
"We have started building lysine inventories in Chicago, and the news has been circulating in China’s lysine industry. We have state-of-the-art warehousing facilities, capable of handling both 25-kg bags and one-ton tote bags. Our climate-controlled warehouse also ensures the product’s quality during long-term storage. We received requests from Chinese lysine manufacturers and distributors for additional warehousing capacity. Polifar Group, for instance, requests us to stock 500 tons of lysine in Chicago by the end of 2022," says Mr Rain.
Chicago offers unmatched advantages as an Asian lysine wholesale center. Trucks from Chicago can reach most parts of the midwestern states within half a day. "As gas prices are soaring, we are also arranging rail transportation for long-distance (800+ miles) delivery," said Mr Hugh. Another of Chicago’s advantages, as Mr Hugh observes, is that it is only a half-day drive to Winnipeg, in the Canadian province of Manitoba, where animal feed manufacturers abound.
Building inventories in Chicago and then delivering the product to American customers involves a greater cost compared with shipping the product to US consumers directly from Asia. "Yet as international shipments often remain unreliable, supply chain robustness has become a major concern for American corporate executives. That is the primary reason we build lysine inventories in Chicago," observed Mr Rain.
SOURCE Anitrition Biotech