Yiwu, Zhejiang is the world’s largest distribution center for Christmas supplies, with two-thirds of the world’s Christmas supplies coming from here.
According to CCTV Financial Daily, Yiwu International Trade City, the world’s largest “Christmas supplies factory”, has significantly advanced its Christmas ordering season this year. Usually August is the peak period for shipments, with shipments completed by the end of September and distribution completed in October. But this year, orders arrived early in February and March.
According to Ningbo Customs personnel, the export volume of Christmas supplies has gradually increased since May, and the export volume in the entire second quarter increased by nearly five percentage points compared with the same period last year.
The main reason why foreign trade companies have significantly advanced their procurement time is that freight rates continue to rise.
Container supply has always been relatively scarce. Now that the impact of the overseas epidemic has intensified, the probability of dock workers working is reduced, terminals are congested, and sailing suspensions occur from time to time. Since the third and fourth quarters of last year, there has been a shortage of shipping space and a hard-to-find situation. Now, not only has it not eased, but the shortage of transportation capacity has also intensified.
Large buyers issue year-end out-of-stock warning!
Currently, the world’s vast network of ports, container ships and inland shipping companies is cluttered, and shipping costs are skyrocketing. This is troubling news for retailers and shoppers alike.
The supply chain has become extremely unstable since the outbreak of the new coronavirus last year, and the situation will only get worse as the Delta variant strain expands around the world. Therefore, this shopping season, consumers need to be prepared for higher product prices and longer delivery times.
Some big buyers, including Adidas, Crocs, and Hasbro, even issued year-end out-of-stock warnings.
The Entertainer toy chain founder Gary Grant also said that the company has about 200 containers in stock in China, but cannot ship them over. This means that this year’s UK Christmas period stock shortages will be the worst ever, especially in the toy category.
The current situation of U.S. ports: It is currently out of control!
According to the latest news from foreign media, two iconic ports with global port congestion, the Port of Los Angeles and the Port of Long Beach on the West Coast of the United States, are both blocked again! The number of container ships queuing up outside the port waiting to berth has once again hit a new high!
Data show that the current port congestion has not only reached a new high since the epidemic, but even in 2002 and 2004, the ports of Los Angeles and Long Beach were Although the port blockade caused serious economic chaos during the 10-day and 8-day closures due to dockworkers’ strikes, the ship queue did not exceed 30 ships on both occasions. It is clear that the situation today is much more serious.
Data from the Port of Los Angeles in August shows that 90% of ships sailed directly to the anchorage and joined the berthing queue that waited for an average of 7.8 days!
Peter Sand, chief shipping economist at BIMCO, a global shipping organization, said that some companies are actively preparing for the few remaining inventories in preparation for the upcoming Black Friday and Christmas season. .
But now dockworkers at the Ports of Los Angeles and Long Beach are unable to transport containers on time, both in and out, due to reduced logistics efficiency due to excessive yard density.
A shortage of trailers and frames across the United States is also making wait times for boats longer. U.S. retailers are struggling with record low inventories, which could mean container shortages will worsen in the coming weeks.
“It’s very confusing now,” Niels Larsen, head of DSV’s North American sea and air business, recently told Danish Business Daily about the container market situation. Børsen admitted frankly: The current market is out of control!
Freight costs will remain high until 2022
According to forecasts from Moody’s Investor Service, ocean freight rates will remain at record highs this year.
In addition, shipping consultancy Sea-Intelligence also stated that the surge in container freight rates may continue until the spring of 2022. “The surge in container freight rates and the impact on container ships and container equipment The high demand situation is likely to continue until at least next spring.” Freight rates on U.S. routes may increase by another 25%.
Exporters can disclose information to buyers who have been reluctant to ship after placing an order. There is no need to wait any longer and ship the goods quickly. </p
