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[The market is highly involved and the textile industry is operating at low profits]
Release date:[2024/5/9] Read a total of[77]time

It's hard to find a warehouse, and it's hard to reserve it two weeks in advance.

This wave of price increases has surprised many people. This off-season for foreign trade in the traditional sense is not too "light". It's obviously the off-season, why did the price increase? Some shipping companies are in tight supply, and it is even "hard to find a cabin"?


"Departing from Qingdao Port and shipping to western South America, the freight has increased so much, it has increased by US$500 in one week!" A Qingdao freight agent told reporters. Every day, he stares at the Internet to grab cabins and keeps checking the cabinets, one price a day. Sometimes after booking a space, the flight is postponed, and then the price increases, and the space has to be rebooked. "Still can't get a cabin, all cabins are 'exploded'."

A Yiwu freight forwarder told reporters that the year before was originally the peak season and freight rates had risen. His customers were thinking about shipping after the new year. However, the new year has begun and the price has not been lower. Some leading shipping companies have "initiated price increases" one after another, and can receive several price increase notices within a day.

However, this price increase does not apply to all routes, but mainly to routes in North America, South America, and the Red Sea. Many prices have increased by 500 to 2,000 US dollars, and some routes have increased by nearly 70%. "This price increase rate is a bit behind the pace."

Affected by the Red Sea incident, ships taking European routes still have to go around the Cape of Good Hope in Africa. Space on some routes is very tight. If you book a container for mid-May two weeks in advance, you may not be able to get it.


Facing the double test of cost and delivery time

Against the backdrop of a high degree of market involution, the textile industry at this stage has long been operating at a low profit. Even in the foreign trade industry, profits have dropped a lot. The continuous rise in shipping costs in the short term is bound to further increase the rigid costs of textile foreign trade companies and compress profits.

But on the other hand, even if profits are reduced, it is better than losing money due to breach of contract. Now, because the two main arteries of global shipping are blocked, the available shipping space in the market is already tight. Even if we receive several price increase notices in a day, As long as the goods can be shipped in time, you still have to pay extra.

In the long run, the Red Sea crisis is not over yet, overseas demand is picking up, there are geopolitical conflicts in the Middle East, and there are many comprehensive factors. It is expected that freight rates will still be easy to rise but difficult to fall in the future. In the end, consumers in developed countries in Europe and the United States will pay for these high shipping costs, which may further aggravate their inflation and continue to undermine their purchasing power.

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