This is the first time that two-way air transport flights have been completely grounded since China and the United States began air travel in 1981. Once officially implemented, the cross-border logistics market will be affected, and Sino-US trade will be affected!
The United States suddenly announced the suspension of flights to China. Air freight is expected to rise and sea freight may be facing a big liquidation. Foreign trade exports are under pressure again!
It is reported that the U.S. Department of Transportation issued an order on the 3rd, announcing that it will suspend all scheduled passenger flights between China and the United States operated by Chinese airlines from June 16 to put pressure on China to allow U.S. airlines to The company has resumed flights to China.
▲ Chinese and American passenger planes may be completely grounded
This ban applies to China International China Airlines, Capital Airlines, China Eastern Airlines, China Southern Airlines, Hainan Airlines, Xiamen Airlines and many other Chinese airlines.
The above-mentioned order declares that the U.S. Department of Transportation will suspend all Chinese airlines from flying to and from the United States because the Chinese government “fails to allow U.S. carriers to implement scheduled passenger air services to and from China and cannot exercise the full content of bilateral rights.” of scheduled flight operations. The order will take effect on June 16, 2020.
▲Trump: Pay attention to the time, starting on June 16th!
According to the June flight plans previously released by Chinese airlines, the order will affect many routes including the Beijing-Los Angeles route operated by Air China, the Guangzhou-Los Angeles route operated by China Southern Airlines, and the Shanghai-New York route operated by China Eastern Airlines.
Reuters quoted U.S. officials and airline sources as saying that the Trump administration is planning to ban Chinese passenger flights to the United States starting in mid-June in order to pressure China to allow U.S. airlines to resume flights. The report pointed out that the relevant arrangements are scheduled to be announced on Wednesday and are regarded as “punishment” for China’s failure to comply with the existing flight agreement between China and the United States. According to sources, the so-called “punishment” measures are planned to take effect on June 16, but adjustments are still possible.
1. Air freight rates are rising, and sea freight may usher in a wider liquidation!
Since the outbreak of the epidemic, due to the large-scale grounding of air transport, the global air transport market, dominated by the belly holds of passenger aircraft, has basically come to a standstill. Charter freight rates have soared to unprecedented highs, with air freight rates of 130, 150 or even 180 per kilogram. , so outrageous that some freight forwarding companies are embarrassed to quote!
This time the United States suddenly announced a ban on Chinese flights to the United States, causing the air freight market that had hoped to recover to fall into the abyss again. Industry analysts believe that this This will inevitably increase the capacity pressure on the air transport market, and more passenger-to-cargo aircraft will fly to and from China-US routes. At the same time, it also amplifies the business demand for shipping.
▲The industry is bullish on freight rates
So once the flight ban is officially implemented, not only air freight rates It will rise again, and the originally tense US shipping line may also face rising freight rates and tight shipping space, and liquidation of warehouses is likely to intensify!
2. The situation has improved, but it is not optimistic!
The U.S. government had requested some time ago to open flights to Beijing and Shanghai, China, on June 1 Due to the high domestic virus epidemic data in the United States, direct flights to the three major cities of Chengdu and Chengdu will involve great risks of unpredictability if the flights are opened. However, considering the overall situation, the Chinese government ultimately did not agree to the U.S. request to open flights to China on June 1.
As a result, the U.S. government announced on June 3 that it would ban Chinese flights to the United States starting from June 16. It can be seen that the news that the United States issued a ban on Chinese flights to the United States is a response to China’s failure to promise to open flights to China’s three major cities on June 1. It seems to be a counterattack to China, but in fact it is just trying to find a way out for itself.
However, since the outbreak of the new crown epidemic, the Trump administration has taken the lead in issuing a “no-fly order” to China. On January 28, United Airlines suspended flights on February 1 due to “significant drop in demand”. As of February 28, there were many flights to China, but a number of cargo flights to China were still in operation. On January 31, the U.S. government banned the entry of most non-U.S. citizens who had been to China in the past 14 days and did not impose restrictions on Chinese flights. However, after February, major U.S. airlines voluntarily suspended all passenger flights to China.
In fact, what the U.S. Department of Transportation calls China’s failure to allow U.S. airlines to operate passenger routes to and from China refers to the “Five Ones” implemented by the Civil Aviation Administration of China since March 29. The policy is that one airline, one country, one route will fly once a week to prevent the spread of the coronavirus.
Since the policy requires that the international flight plan released on March 12 be used as the basis, and various U.S. airlines have previously suspended all China-U.S. flights, routes have not been restored. The relevant person in charge of the Transportation Department of the Civil Aviation Administration of China previously stated in response to reporters’ questions that the “Five Ones” policy is mainly to resolutely curb the high risk of imported epidemics.
After this incident came out, the Civil Aviation Administration of China issued a notice on June 4 stating that all foreign airlines not included in the “Phase 5” flight plan can choose an airline with receiving capabilities within the scope of the company’s operating license. The port city (the specific city list can be found on the official website of the Civil Aviation Administration) operates one international passenger route flight every week.
Since June 8, the Civil Aviation Administration, the Ministry of Foreign Affairs, the National Health Commission, the General Administration of Customs, the Immigration Bureau, etc. have jointly established a special flight mechanism based on the nucleic acid test results of passengers after landing on inbound flights. Implement circuit breakers and incentive measures for flights. On the premise that the risks are controllable and the receiving capabilities are in place, flights to some eligible countries can be moderately increased.
The United States announced that it will resume imposing 25% tariffs on some Chinese products from the 4th!
A few days ago, the Office of the United States Trade Representative issued a notice: Starting from June 4, more than 80% of the products in the fifth batch of products in the fifth batch of products excluded from additional tariffs (products in the 34 billion tariff exclusion list) will be restored. Add 25% tariff!
The majority of foreign trade companies, especially export companies focusing on the US market, need to pay special attention!
The original list of products excluded from the fifth batch of 34 billion tariffs totaled 89 items. This time, only 16 products have been extended their validity period, and 73 products have not been extended their validity period. In other words, the United States has decided to increase taxes on 82% of its products this time!
● Products that have received an extended validity period: Exclude the validity period from being extended to December 31, 2020;
●Products that have not received an extended validity period: they will be removed from the exclusion list after expiration on June 4, 2020, that is, they will be exempted from additional tariffs from July 6, 2018 to June 4, 2020, but an additional 25% tariff will resume from June 4, 2020. Companies exporting to the United States must be cautious in signing contracts with American customers after June 4.
▲USTR Notice Screenshot
Sino-US relations have deteriorated sharply, and foreign trade exports have once again pressure. Textile enterprises need to strengthen themselves!
The textile industry has always been China’s main export-earning industry and a pillar industry in our country. There are now clothes made in China all over the world. Even though there are more clothes made in Southeast Asian countries such as Vietnam and Indonesia, many of them are actually companies that have been transferred out of China, or are part of China’s clothing supply chain. However, many links in the domestic textile and apparel industry chain are still controlled by others.
Although we are a big country in the textile industry, we are not a powerful country in the textile industry
According to the value-added smile curve:
We are still in the lowest-profit and transparent production link, responsible for labor-intensive stages such as spinning, weaving, printing and dyeing, and garment manufacturing. In the technical aspects, such as the development of new fibers and fabrics, the development of functional printing and dyeing auxiliaries (anti-ultraviolet, waterproof), and the production of textile printing and dyeing machinery; in the marketing aspect, we lack well-known brands, and now every big shopping mall will have them High-quality and low-priced fast-selling clothing brands (HM, ZARA, Uniqlo, etc.). Although we are a major clothing production country, domestic fast-selling brands have not been established.
my country’s current textiles are mostly traditional labor-intensive products that lack technological added value, and most companies undertake OEM production of foreign brands.
After obtaining an order from abroad, production is carried out according to the prototype and texture requirements designed by the other party. It relies solely on my country’s labor cost advantage and has no technical added value at all. Affected by the global economic downturn, foreign customers have become more demanding in their import quotations in order to protect their own interests, which is increasingly squeezing our profits.
Foreign businessmen have a very clear understanding of the production links and production costs of Chinese textiles, such as how many raw materials each exported product requires, how many production processes there are, and what the unit price of each product is. Importers only add some profits to the cost of textile production and outsource it to Chinese textile companies for OEM production. Such low profits make it difficult for my country’s textile production companies.
However, our country’s textile companies still have to accept the extremely low-profit quotations from foreign companies, because the technical value-added of our country’s textiles is low and highly substitutable, and importers can find other manufacturers to produce on their behalf.
Now Sino-US relations have deteriorated sharply. Last year, trade frictions intensified. Until now, the United States is determined to block the development of China’s science and technology field. At the same time, just a few days ago, China’s textile industry, China Color Spinning Co., Ltd. The leading yarn company “Huafu Fashion” has also been added to the “Entity List” in the United States. This not only blocks the high-end manufacturing field, but also removes fuel from the bottom and burns the textile manufacturing industry. Chinese enterprises need to strengthen themselves, use technology and brands to break the blockade and win glory for the country! </p
