General

Many unfavorable factors such as rising raw material prices, rising global freight rates, and poor transportation have affected the Christmas product exports of Chinese foreign trade companies. Many companies reported that this year’s Christmas export peak period is facing a situation of "business but no profit". At the regular press conference of the Ministry of Commerce held on August 26, the spokesperson Gao Feng analyzed the reasons for the export difficulties of Christmas products companies.

Gao Feng said that affected by factors such as the continuous spread of the global epidemic, rising prices of international bulk commodities, and structural imbalances in global transportation capacity, some raw material prices, high freight rates, and insufficient transportation capacity have been plagued by foreign trade companies. “Usually June-August is the peak season for Christmas supplies shipments. However, considering the risk of shipping detention this year, overseas customers generally place orders in advance through online viewing and signing of orders. Some orders have been shipped and completed earlier than in previous years. Delivery, and some orders are backlogged in domestic warehouses due to difficulties in booking space or high freight rates, putting pressure on business operations."

The global Christmas products are mainly supplied by China, and Yiwu acts as a "barometer" as an important export base for China. Statistics from Yiwu Bureau of Commerce show that in May, there were more foreign inquiries for various new Christmas pendants, Christmas stickers, Christmas decorations, etc. in Yiwu, and orders rose, but sales performed poorly compared to the same period last year. In July, sales of Christmas products began to slow down, and transactions were dominated by replenishment orders.

Yiwu commodities are generally shipped from Ningbo Port to North America, but since the beginning of the year, there have been serious ship jams in American ports. Yiwu Lugang Group also said that the problems of port congestion, delivery delays, and space shortages are becoming more serious. Gao Feng said that the Ministry of Commerce, in conjunction with many departments, has actively taken measures to increase container supply, increase shipping capacity, and strengthen international cooperation. Further study targeted measures, do a good job in stabilizing foreign trade and smooth international logistics, strengthen cooperation with various trading partners, and work together to cope with challenges. Shenzhen Yantian Port and Ningbo Port are both important ports for Chinese goods to go to sea. Affected by the epidemic, the two ports have been partially closed, which has a significant impact on the global supply chain. However, the latest news shows that the Meishan Wharf of Ningbo Port has been unblocked on August 25, and the overall recovery of the port will be just around the corner.