Cotton Prices Fell To Their Lowest Level Since 2009.

Prices fell to the lowest level in 5 years, and cotton farmers in southern Africa and faraway Texas states are complaining about cotton.

Life is very difficult.

In China, the price of cotton is less than 60 cents a pound this year due to various factors such as the support of the United States and Canada for large-scale cotton planting and so on since 2009.

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The economic environment of foreign countries has depressed the capital of many "fortune makers", which makes many foreign trade enterprises in Jiaxing, Zhejiang, tremble with fear.

Reporters recently learned from the China Export and Credit Insurance Corp Jiaxing office that in the first three quarters of this year, the number of reported cases and amounts of export enterprises in Jiaxing increased significantly, and garment enterprises accounted for a large part of them and became the hardest hit areas.

Why do garment enterprises report so much damage? In the face of such a situation, are there any good ways to avoid losses for garment exporters in Jiaxing?

In April this year, a clothing export enterprise from Tongxiang, Zhejiang was told that the fund of a fashion company with a global chain brand had been in trouble for five or six years. The payment of goods was temporarily unable to pay. At that time, Australian Corporation had already owed nearly $700 thousand of the business.

"The Australian buyer has many suppliers in China, and the total default amount should be more than a million dollars," the person in charge told reporters.

Our annual paction volume with this buyer accounts for 80% of the total export volume of our company. We feel that it will be safer to cooperate with the international famous brand enterprises. I didn't expect such a thing happened now. "

China trust insurance Jiaxing Office official told reporters, "after receiving the loss, the company first invited the Australian professional compensation agency to intervene to verify the buyer's business and the late repayment arrangements.

After coordination, the buyer promised to pay the company $50 thousand a month, but the buyer only paid a month's notice that he could not continue to pay because of a shortage of funds.

Due to the large amount of money involved, the company is also a small and medium-sized foreign trade company. After confirming the loss amount and insurance liability of the enterprise, the company makes a quick payment decision.

It took more than two months from the loss of report to the enterprise to get the indemnity, and the quick compensation has eased the pressure of enterprise funds to a large extent.

According to statistics, in the 1~9 months of this year, China's Jiaxing office has received 157 cases of reported losses from enterprises, and reported losses amounting to nearly 30 million US dollars, including 35 cases of clothing and about 5000000 dollars involved.

From a national perspective, the risk of exporting textile and clothing products to the European Union has increased significantly over the past years, for example, Britain, Germany and France have more than 2% risk.

The head of China's Jiaxing insurance office said that due to the particularity of the product structure and the way of settlement, the cost of debt default by foreign buyers was relatively low. In general, domestic export enterprises and foreign buyers adopted the T/T settlement method, that is, buyers would pay the balance after the goods were delivered.

And there is no clear agreement between the two sides on product quality inspection standards. In addition to buyers' default due to subjective and objective reasons, it is easy to cause foreign buyers to refuse payment on the grounds of quality problems.

China's Jiaxing insurance office recommends that garment exporters should increase export risk prediction and prevention. Besides paying close attention to the payment performance and operation conditions of buyers, it is also very important to do quality inspection before shipment. Exporters can ask buyers to send samples or check through third party inspection bodies, such as SGS and other international authoritative inspection bodies before shipment, or when they sign sales contracts, they should define quality standards and dispute settlement clauses, so as to prevent buyers from refusing payment on the grounds of quality problems.