General

The black swan epidemic is still spreading, and many foreign trade enterprises are facing the problems of cancellation or delay of orders, difficulty in developing new customers, soaring ocean freight, and sharp decrease in profits, especially small and medium-sized foreign trade enterprises.

In 2022, just as foreign traders are carrying heavy pressure to prepare to go against the trend and ride the waves, another heavy bomb will fall - the conflict between Russia and Ukraine, which have close trade relations with China, will escalate, and the foreign trade circle will face unprecedented risks and challenges. What are the impacts on foreign trade enterprises under this current situation? How should enterprises respond?

1、 How much does the conflict between Russia and Ukraine affect foreign trade?

As the largest manufacturing country in the world, China will have a great impact on foreign trade enterprises after the escalation of the Russian Ukrainian conflict.

1. Exchange rate fluctuations

Many countries have excluded some Russian banks from the SWIFT payment system and imposed restrictive measures on the Russian Central Bank. After the western countries imposed financial sanctions, the Russian ruble fell sharply against the US dollar, once dropping nearly 30% to the lowest point in history, and non US currencies such as the euro also fell sharply, which greatly affected the profit margin of Chinese exporters.

2. Logistics affected

With the deterioration of the situation in Russia and Ukraine, it has a great impact on logistics. Maersk, Mediterranean Shipping, Dafei and other shipping companies decided not to call at Ukrainian ports and stopped accepting new bookings to and from Ukraine. Russia has also closed its airspace in areas bordering Ukraine, affecting air cargo.

3. Sea freight soared

The problem of rising ocean freight and difficulty in finding a container has not been completely solved. As the conflict between Russia and Ukraine escalates, the sea freight price may fluctuate more violently. According to statistics, 10.5% of the 1.89 million sailors in the world are Russian, and the other 4% are Ukrainian. When Ukraine entered the wartime state, the problem of "shortage of personnel" may occur at any time in global shipping, which will greatly affect the shipping price and ultimately affect the supply chain and commodity prices.

Under the current situation of the escalation of the epidemic situation and the conflict between Russia and Ukraine, foreign traders may have to fight against inflation while maintaining profits in 2022, and go through a new cycle between costs and sales. It is not only the conflict between Russia and Ukraine that makes people think, but the subsequent complex and volatile international situation will still have a chain reaction.

Foreign trade enterprises must stand on the world economic stage with more than one foot. They should not only focus on the trade chain of one country, but also try to turn their eyes to Southeast Asian RCEP countries and African countries. These emerging market economies have obvious advantages, and with the support of global policies, economic growth is expected to continue to improve. In addition, while developing new markets, we should also revitalize the stock customers of enterprises and increase the probability of signing orders. We will implement the policy of "walking on two legs" and move forward in parallel in order to reduce the impact of the overall environment on foreign trade enterprises.

2、 How should foreign trade enterprises cope? How to obtain customers accurately and how to conduct intelligent marketing?

The turbulence of the international situation has led to a decline in the economic environment. For foreign traders, it is still a great challenge to capture business opportunities and capture customers. When foreign traders stand at the historical node of 2022, they can clearly feel that a new era is coming, and the world pattern and national strategy are undergoing historic changes. Especially under the influence of the epidemic situation and the international situation, the old business model of foreign trade enterprises has encountered a bottleneck in development.

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The conflict between Russia and Ukraine, which has attracted global attention, is escalating step by step. The epidemic is also spreading. The foreign trade market environment is becoming more volatile. Where are the outlets and opportunities for foreign trade enterprises?

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