[Sea freight rates have doubled continuously or will affect the Christmas sales season]
Release date:[2021/8/26] Read a total of [396] time

Christmas in the world may be inseparable from Yiwu manufacturing.

   In the global Christmas products market, the Christmas products section of Zhejiang Yiwu International Trade City gathers hundreds of Christmas products merchants, and two-thirds of the world's Christmas products come from here. Yiwu is regarded as the world's largest "Christmas Supplies Factory".

Regarding the shipment situation of Yiwu Christmas products industry this year, on August 23, comprehensive interviews learned that since the third and fourth quarters after the epidemic last year, ocean freight rates have doubled continuously. There is a downturn.

   With the continued impact of the overseas epidemic and the shortage of global capacity, the supply rhythm has also been disrupted. According to Yiwu manufacturers, the supply and demand of Christmas products in the foreign trade business is out of balance this year, and shipments have been delayed. "This year’s shipment situation is quite special. At this point in time, Yiwu Christmas products manufacturers are rushing to produce at full capacity. Judging from the orders received this year, although the situation has returned to 70% before the epidemic, The final shipment situation is still to be determined. Because of the port closure and maritime congestion caused by the epidemic, manufacturers are relatively conservative in their shipments. At present, the shipment volume cannot be judged." Said Cai Qinliang, Secretary-General of the Christmas Products Industry Association of Yiwu, Zhejiang.

   Due to global freight backlogs, congestion, rising freight rates and other issues, many buyers may return empty-handed this Christmas shopping season. Manufacturers who have been operating in Yiwu for more than 10 years, what they call "entanglement" this year refers to the fact that profits have been greatly reduced under the pressure of "increased freight, raw materials, and labor", and profits have been further reduced. Under circumstances, companies have to "prefer not to do less," and maintain operations in a conservative manner. "The order came early, and now the goods are ready, but they can’t be shipped out. The forwarder company gave us feedback that there are no boxes. We also have to keep in touch with the forwarder company at the port every day, on the one hand, we can grasp the quotation in real time. The situation, on the one hand, understand the current level of terminal congestion and capacity shortage." Luo Youdong said. "From June of this year to October, this is our shipping period. I will take 1 to 10 shipping containers for each shipment, but this year’s goods, if I want to ship all of them, I have to Big loss."

   Currently, Christmas foreign traders are trying their best to absorb the pressure of falling profits, rising raw materials and labor caused by the epidemic. The biggest uncertain factor behind this is ocean freight. The epidemic has affected the transfer efficiency of containers. The transportation capacity has dropped sharply, and the freight rate has risen sharply. At this stage, the freight rate is the biggest shackle restricting my country's export growth.

Outbreaks of production capacity and mutated viruses will continue to affect the market

   At present, the supply and demand situation of both polyester and weaving is not optimistic. The demand for polyester is expected to be better than the demand for weaving, but at the same time, the inventory of polyester-weaving link will still show a downward shifting trend in the second half of the year.

First of all, weaving and texturing equipment will be newly added in 2021. At the same time, the production capacity concentration and bargaining power of the polyester link is much higher than that of the weaving and texturing link. By then, the polyester link can rely on the advantages of high concentration through joint quotation, control output, Promotions and other means urge downstream purchases, thereby shifting inventory downward.

  Furthermore, the demand for polyester and weaving in September, October and November last year recovered significantly, and the demand for weaving was in short supply, and the production and sales of polyester continued to be hot. Except that the increase in terminal orders is affected by factors such as the e-commerce peak seasons such as "Double Eleven" and "Double Twelfth", another important reason is that last year's weaving and texturing factories had large uncertainties for the second half of the year, and preparations were not prepared for low start-ups. Sufficient, so the market supply has entered a short-term shortage state under the surprise of terminal orders.

   On the other hand, during the same period last year, the production and supply of various industries in China basically returned to normal, and the situation of centralized stockpiling due to terminal concerns about the shortage of supply will no longer exist in recent years. At the same time, the price of raw material polyester polyester rebounded strongly this year, and there is no bottom-hunting in the terminal. The demand and procurement rhythm of the weaving link has slowed down significantly compared with last year. Finally, if the overseas epidemic recovers, due to labor cost dividends in Southeast Asia and other regions, the textile and apparel orders that have been returned to China for a short time will return to Southeast Asia.

Generally speaking, the market still has expectations for the next traditional peak season market. However, due to the high start-up and inventory status of weaving entering September, sufficient supply vs. peak season orders recovery, and overseas epidemic recovery orders return to Southeast Asia, then polyester-weaving Link profitability and inventory may be difficult to replicate the optimistic situation in the fourth quarter of last year.


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