The market is no longer “hard to find a cargo” but faces “fewer orders”
Previously, some international trade companies reported that they were facing problems such as rising shipping rates, and a lack of containers and cargo. On August 29, the spokesperson said that according to the reports, the freight rates of some popular routes have dropped, and the container shipping market is no longer “hard to find”. A recent survey of more than 500 companies showed that the main difficulties facing companies are slow logistics, high costs, and few orders. 56% of the companies said that the price of raw materials and logistics costs are high. For example, although the freight rate of shipping routes has fallen in the short term, it is still at a high level in the medium and long term; 62.5% of the companies said that the orders are unstable, with more short orders and small orders, and less long and large orders. The demands of enterprises mainly focus on maintaining the stability and smoothness of international and domestic logistics, implementing bailout and assistance policies, and facilitating cross-border personnel exchanges.
A spokesman said: During the survey, we also noticed some positive factors. In the past three months, as the Covid-19 has been effectively controlled, especially with the accelerated implementation of the national economic stabilization policy, foreign trade imports and exports have stabilized and rebounded, and business expectations and confidence are gradually improving. Recently, CCPIT has also taken a series of measures to stabilize foreign trade.
In the first seven months of this year, 906 factual certificates of the COVID-19 were issued to 426 companies, instructing companies to reduce or exempt liability for breach of contract in accordance with the law, involving an amount of US$3.653 billion, effectively helping companies stabilize customers and keep orders.
Fewer orders are the main difficulty for enterprises
According to the results of a questionnaire carried out by the China Council for the Promotion of International Trade, the majority of enterprises believe that they are currently facing difficulties with fewer orders!
As the high temperature eases, the balance between power supply and demand is good for production recovery, and the manufacturing PMI may rebound slightly in September. However, overseas replenishment is coming to an end, especially the real estate, electronics, and other industries that are strongly related to China’s exports have already declined, and the decline in external demand will drag down the PMI in the fourth quarter.
