Since the beginning of last year, the global container freight prices continue to climb, part of the shipping line container market price soared to more than 10 times. Yiwu, Zhejiang province, is an important concentration of China’s foreign trade commodity export, every year there are a large number of foreign merchants to purchase here, the drastic change of container freight price has a huge impact on Yiwu commodity export.
As for freight rates, experts analyze that they are now easing, and the worst supply and demand shortage has passed, and there should be a gradual decline. Container freight is rising, the most affected are low value-added goods, because the profit margin is small, these goods can not bear the high freight price, so many overseas buyers suspend orders, and some low value goods orders are postponed or refused to receive goods. Due to the impact of the epidemic, many international merchants have difficulty in traveling, and the passenger flow in the city is not as good as before, leading to a significant decline in the order volume of many stores this year. Container freight rate is high, the main reason or demand for space. And the high freight leads to overseas buyers to reduce the enthusiasm of the order or even temporary rejection of the order.
In this case, the inventory of many small commodity enterprises in Zhejiang Yiwu is seriously overstocked, and the company’s cash flow situation is deteriorating.