A lot has happened in just one week!
European and American stocks fell, crude oil fell, shipping rates fell, futures and spot prices fell together, and even the “epidemic” and “power control” winds are endless… This year’s off-season is probably the most difficult and unforgettable year for textiles. Bar!
This year’s market conditions are indeed extraordinary! After all, it is not ordinary for the market to be so bleak! No wonder many bosses have completely resigned themselves to giving up July and August to prepare for the Golden Nine and Silver Ten!
Epidemic + power control is imminent! Jiangsu is in dire straits!
Recently, the epidemic has appeared again in Shanghai, Jiangsu, Anhui, Guangdong and other regions! And Jiangsu is particularly difficult!
Without further ado, let’s take a look at the two notices, one about “power control” and the other about “prevention and control”. This directly blocks our work and life from the source!
I have to say that July and August every year always seem to be troubled! There are so many things going on in Yao Mozi, basically inseparable from electricity, wind, rain, and now we have to add the two great gods of the epidemic and crude oil!
We all know what we went through last summer because of the electricity problem! Nowadays, foreign countries have also begun to enter the stage of “electricity shortage” and “gas shortage”!
Although the domestic situation has been guaranteed in advance and there will be no public power rationing, since this summer, high electricity loads in various provinces, cities and regions have set records! It is not difficult to predict that various provinces and cities will introduce various measures to control the total electricity consumption! Such as price increase! For example, agree on the total amount of electricity used! For example… various methods!
Sea freight is greatly reduced! The shipment wave is coming! Some dropped below $7,000!
In 2021, container shortages, cargo outages, and freight prices will increase significantly around the world. This year can be described as the most prosperous year for shipping in the past 50 years. On popular routes between China and the United States, container freight rates once climbed to US$20,000 per TEU, and freight rates were even as high as the value of a single container.
In 2022, as the global logistics supply chain recovers, sky-high sea freight rates begin to gradually loosen, and freight rates on popular routes generally fall by 30 to 40% year-on-year. The freight rate between the US and the West has dropped to US$7,000 from around US$13,000 before the Spring Festival. Shanghai’s export container freight index has also fallen from a high level, falling by more than 17% during the year.
Meanwhile, across the Pacific, spot rates are falling rapidly as demand softens.
The recent Baltic Freight Index (FBX) shows that freight rates from Asia to the US West Coast fell 15% to US$7,599 per 40 feet, while freight rates from the East Coast fell 13% to US$10,113 per 40 feet. Since the beginning of April, eastbound freight rates have fallen by about 50%, and the rate of decline is expected to continue to accelerate.
The new Shifex index released by the Shifl supply chain freight platform reflects the collapse of short-term transpacific freight rates, with its U.S. West Coast segment falling below $7,000 this week, averaging $6,521 per 40 feet.
With the recent sharp drop in sea freight rates, my country’s foreign trade logistics companies have also felt the impact of market changes.
According to a Shanghai logistics company, with the resumption of work and production at the Shanghai port, the company’s order volume has doubled recently, and customers across the country are rushing to book recent shipping schedules and shipping spaces. Different from the shortage of containers and cabins in 2021, most routes can now book cabins about a week in advance.
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