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    Exporters Pour Bitter Water: There Is No Industry Worse Than Foreign Trade.

    2020/3/30 14:01:00 2

    Epidemic SituationForeign TradeExport

    With the peak of the new crown pneumonia epidemic in China, the workers who started to restrict the resumption of work began to return to work. Li Xingqian, director of the foreign trade division of the Ministry of Commerce, recently released the key foreign trade enterprises in 19 provinces and cities to reach a rate of re employment or close to 100%. From the closure of the city to the release of the seal and the gradual resumption of work, the epidemic in China is breathtaking.

    However, the owners of foreign trade enterprises that have just begun to usher in the dawn have been attacked again because of the aggravation of the epidemic abroad. With the gradual closure of various ports, the berthing operations of the maritime ports are blocked, and the cost of the air service suspension is soaring, resulting in the global supply chain being blocked, and the overseas demand is being frozen. It can be answered without work.

    Freight forwarding brother: can not afford to transport

    Even more afraid of not being transported.

    According to past experience, the boss of a small freight forwarder in Shenzhen, old ox, should frequent frequent factories and warehouses at the moment. In accordance with the needs of customers, the goods will be repackaged into warehouses and sent abroad through different channels.

    With the rapid spread of the epidemic in the international market, the freight forwarders were also pressed the "pause button" as the intermediate link to complete the cargo transportation.

    "Can not afford to, can not afford to transport, can not afford to..." When interviewed by reporters, the old cow used three "unable to afford" to explain the current dilemma of freight forwarders.

    "Now is not the goods can not be collected, the cost is so high that the goods are sent out without making money or even losing money. Who will deliver the goods?" Old cow said, "before the European cargo, 3-4 days of air freight, you can complete the signing, the price is 30 yuan / kg, now the time is extended to 8-10 days, the price will be 55 yuan / kg, the same to the United States, the transport time doubled, the price doubled."

    "Unless you can really afford it, hurry up." For wait-and-see foreign trade enterprises, old cow gave the reason for such a proposal, that is, transport prices are still rising.

    "In March 25th, the price of logistics has just been raised, only three days later, and new price rises were announced. In April 5th, prices in Europe and the United States rose by almost 20 yuan / kg." Old cow smiles bitterly.

    In fact, in addition to the increase in transport unit price, the additional cost of warehousing and surcharge is also increasing the overall cost of freight transportation. "Now every day there are a lot of international flights canceled, exports like squeezing toothpaste, slowly and gradually, goods can not be shipped out can only backlog warehouses, logistics can not afford to, can only add additional storage fee." Old cow said, "now surcharge is also rising, anyway, everything is going up."

    However, this is not the most serious. Compared with the price increase, the old cow is most afraid of returning the order. "If the goods are sent out, if the local express is unable to deliver, or no person can sign for it, the goods will be automatically returned, which means that you have to pay for the goods to be shipped back to the country from abroad." Old cow said, "unless the goods are worth a lot of money, they will only be able to apply for destruction in the local area. This is also a cost." So we have to be cautious about receiving goods now. "

    "The epidemic has just finished in the first half, and the second half of the second half is abroad. We are looking at the whole stadium." At the end of the interview, the old cow is also expecting the epidemic to pass quickly, so that everyone can get back to normal. "Before the domestic turn for the better in March, we expect to be restored to normal by the end of April. Now it is so serious abroad that it will be normal after June to get back to normal."

    "Freight forwarding industry is like this, see the day to eat." Old cow sighs. The dust of the age falls on a person's head, a mountain.

    Clothing wholesale boss:

    Cancellation of order, no job recovery

    Chen Wen's clothing store is located in the South Oil clothing wholesale market of Shenzhen. In the past 1 and February, it was the peak season in the shops, because spring clothes in Shenzhen occupy a place in China. Clothing owners everywhere will come to the store to book the new spring in advance, but the new crown has changed everything. Since February, Chen Wen has not received an order, and the overseas customers who had been contacted have not yet done so.

    Zheng boss, who is also in the wholesale market of South oil, reluctantly told reporters that "the epidemic has hit us too hard." My cash flow is negative now. In order to be able to sustain it, some of our businesses went to the property department for rent reduction some time ago. I even went to spend 300 thousand yuan on loans. At the end of last year, several European orders were cancelled. Up to now, no new orders have been received. There are no customers in the shop, so we can only go through the stock by Taobao live, and the employees are dismissed, leaving me with another partner.

    When interviewed by the South oil wholesale clothing market, reporters met a Vietnamese clothing wholesaler. He said that although Vietnam's clothing industry has cost advantages, he chose to pick up goods in Shenzhen in recent years, because Shenzhen's design is relatively new and its fabrics are also superior. However, this time he did not worry about the order, because his spread of the epidemic will be more uncertain about the economic impact.

    Chen Wen said, wholesale clothing has a strong seasonal character, after the spring season, will be linked to a few months of the off-season. Under the pressure of rent, she is going to close the shop and leave.

    Sungang's foreign trade clothing market is another large foreign trade clothing market in Shenzhen. When reporters interviewed, Miss Chen was moving goods, she told reporters that recently several major clothing export enterprises took the initiative to contact, hoping to replace some surplus goods "foreign trade to domestic sales".

    Huang Hui (alias) is engaged in the clothing textile trade profession, she tells the reporter, many factories both do the foreign trade list, also makes the domestic single. Most European and American customers whose clothing trade companies serve have suspended or cancelled orders. "Now that overseas has become a new center of the epidemic, the export goods are seriously hampered, the local clothing consumption market is sluggish, and orders are falling sharply. Especially now that the consumption market in Europe and the United States is in the doldrums, customers have become cautious and have cancelled or postponed orders for 3-6 months. Huang said, "70% of the European and American customers have this situation. The company is planning to hold some online docking meetings to see if we can ship more."

    Liu boss of a textile enterprise from Humen town of Dongguan is facing the same problem. He told reporters reluctantly, "although there has been a resumption of work, there are still some cloth and dyeing links in the cooperative supplier. The existing inventory can only meet 40% of the capacity, and it will take time to get back to normal operation." At present, inventory can only guarantee that the order has been signed at the end of last year, and now it is afraid to sign new orders. Once it is signed, there is no way to ensure that the normal delivery is delivered on time. It is necessary to compensate for those who fail to protect the upstream materials, and the clothes are in season.

    Foton industries, one of the world's largest producers of cylindrical knitted fabrics, has not been spared. Recently, Futian industries cancelled 4500 tons of orders a day. The reporter told Futian industries that Zheng Huixian, a company's securities representative, told reporters that "the rumor is not true, but under the influence of the epidemic, the supply chain of the entire textile and garment industry has been greatly affected." The division is now trying to alleviate the current predicament.

    Wedding Shop shopkeeper: big loss

    Put hope in the second half of the year

    "In 2020, there was no industry worse than foreign trade. In February, we were desperately trying to prove to our guests that we were" good "and did not affect business. In March, we kept checking with the guests," are you all right? " Do you want to continue? Is it still available? " Chiang Kai Shek, a sales manager of a coffee machine exporter in Shenzhen, told reporters.

    "The largest coffee machine distributor in Greece has ordered us to cancel the $300 thousand coffee machine a year ago. At present, our upstream businesses are unable to deliver on time due to insufficient supply of raw materials. We expected that they would be able to deliver the goods in March 10th. At the moment, it will be good to deliver in June. We are still negotiating with the other side whether we can postpone the delivery or not, otherwise we will have a great impact on the company's performance this year. Miss Jiang said.

    To tell the truth, now the resumption of work will add more cost pressure to enterprises. The developed countries such as Europe and the United States are the biggest buyers. There are more production and no new orders. The consumption demand has been reduced. From the start up to now, we have only received 3 very small orders, the order volume has been reduced by at least 90% compared with the past, and the customers have also attached the requirement to distribute a certain amount of masks. But with the spread of the epidemic and the high cost of freight, it is not worthwhile to do so. "

    When the new crown pneumonia continues to spread, European countries have taken measures to control the flow of personnel, and even launched a "strong drug" for customs clearance. International freight capacity has shrunk, and air freight charges have skyrocketed, making foreign trade enterprises even worse. Miss Chiang said that the goods sent to Germany during the off-season air freight were priced at $2 / kg for more than 1 tons of goods. But this week, flying from Beijing to Frankfurt, the price of 1 tons or more of the goods to the customers is 7.4 dollars / kg, up nearly 4 times, and the price of goods flying from Shanghai is higher and the price of 1 tons or more is 9 dollars / kg.

    Miss Yip, who is the wife of the wedding dress, has a stall at the two floor of the good hundred years international wedding dress exchange center near the two palace of Guangzhou. She told reporters: "in the past, after the new year, it was also a peak period for ordering, but now the order is 0, really not a single one." Miss Ye sighed, "there is no order, but we have to pay the wages of the workers. The conservative estimate is that hundreds of thousands of losses have been lost in the first half of the year. I have to put my hopes in the second half. "

    Most of the businesses in the wedding dress business are walking on two legs. As for the sales of domestic products and foreign trade, Miss Ye's shop is early, so they have dealt with foreign customers very early, especially in Southeast Asia, which has trained some fixed customers, the basic order price is $200-300, 30-50 pieces are ordered, and some parts of Europe and America are scattered. 。 "It was planned to invest more resources and continue to develop overseas customers on the Internet with the help of some new media."

    According to the American wedding and Dance Industry Association, 80% of western style dresses are produced in China. At present, there are thousands of foreign wedding dresses in China. These manufacturers are mainly concentrated in the vicinity of Guangzhou, Guangdong and Suzhou. With the outbreak of outbreaks of various countries, more and more areas of the country were locked up, and air transport was also halted. The wedding party was basically abolished.

    In March 25th, the announcement of advanced optics was tentatively scheduled to stop production and stop production in March 27th. It is expected to stop for 6-9 months. According to the official website of advanced optical company, the company is a wholly foreign-owned enterprise established in 2012. It focuses on R & D, production and operation of various types of optical lenses, and receives customized glasses. The company has more than 200 employees, with an annual capacity of more than one million. As of 2019, 8 million orders have been accumulated.

    On the afternoon of March 28th, the reporter came to the door of Hai Da Da Industrial Park, where advanced optics was located, and a security guard carried out temperature detection for the personnel entering the industrial park. He told reporters that there are many companies in the park, advanced optics products are exported to foreign countries, there is no domestic order, although the announcement did not explicitly declare the company bankrupt, but it is hard to restore the vitality. "They have almost finished all these two days, and today they seem to have two people in the executive office. A few days ago, community workers came to know the situation. The epidemic is so serious that it is very difficult for the company to get better. The security guard said that not only advanced optics, but also the performance of the company in the industrial park has been affected by the new crown pneumonia epidemic, and even the security work is not as busy as before.

    Production enterprises: new single sharp reduction

    The next two months may be the most difficult.

    Shanghai nal industrial Limited by Share Ltd, mainly engaged in digital inkjet printing materials research and development, production and sales. Yang Jiantang, deputy general manager of nal stock, told reporters that "the production and shipment of our company are still normal. The production of stock export orders can basically be arranged to the end of April this year, but the new order is a big problem, and the decline is really fierce."

    Yang Jiantang said frankly, when communicating with peers, we all have similar concerns about the sudden decline in overseas orders.

    "For our enterprises, the price fluctuation of upstream raw materials is relatively large, for example, the price of PVC resin powder has been affected by the global oil price slump and has seen a rare decline. On the one hand, the production cost of enterprises will decline, and the prices of finished products will not be significantly reduced; however, if the inventory is relatively large, there will also be a risk of falling prices. Yang Jiantang said.

    As a major province of foreign trade enterprises, the foreign trade enterprises in Jiangsu and Zhejiang provinces are also affected by the epidemic. Jiaxing, Zhejiang, a mold production enterprise responsible for Wei Wei (pseudonym) told reporters, "our company's production and personnel turnover is normal, has completely resumed work, but the most troublesome is the overseas sales business, because most countries are" locked up ", the East and West can not get out of life, but the industry that they are engaged in is not as strong as clothing and textiles seasonality. The cancellation of the order is not obvious and there is no loss, but the new order is not optimistic.

    Dawei revealed that more than 80% of the Precision Moulds manufactured by the company were exported to developed countries such as Europe and the United States. Now the air transportation is almost stagnant, and shipping can go out a little. But shipments in India and Sri Lanka are even more difficult.

    Reporters learned from DHL officials in March 27th that at present, the intercontinental network of DHL express, including the three major international hub of Cincinnati (America), Leipzig (Europe) and China Hongkong (Asia Pacific region), has been fully operational. In order to contain the spread of the epidemic, the government of India announced 21 days of nationwide closure of the city in March 24th. Until April 14th, other travel, work and travel restrictions were restricted to shops, hospitals, pharmacies, gas stations, telecommunications and postal services, and other necessary life support services such as food distribution. India prohibits all international commercial flights from entering, and domestic commercial flights are grounded. In this case, apart from a few sites designated by the local government as necessary services, DHL has suspended the dispatch and storage services in India.

    In addition to the impact of freight transport, foreign trade enterprises are facing the problem of exchange rate fluctuations. Yang Jiantang admitted to reporters, "at present, besides the impact of the epidemic itself, it is more important that the US dollar is too strong for some time, and many developing countries have depreciated. For example, the depreciation rate of Brazil Real and South African rand on the US dollar has reached 10%-15% for a time, so that even if the customer pays 20% deposit, the other side will be ready to cancel the order at any time as the exchange rate changes. "

    "We are trying to solve the problem. Taking nal shares as an example, the company should not try to reduce layoffs or reduce wages. At the same time, the use of foreign demand order "gap period" to increase domestic demand, because domestic epidemic gradually improved, in terms of advertising consumables, it is estimated that there will be a wave of new consumption demand. 6, July, overseas epidemic situation should also be obviously controlled. Considering the shortage situation, the whole industry is expected to usher in a new round of demand. The key is to see the continuation of "closing the country" and "sealing the country" in overseas markets. Yang Jiantang said.

    Exhibition company: extension or cancellation

    Affect a large area

    For foreign trade enterprises, orders are life, and a large number of new orders come from various kinds of exhibitions every year.

    Taking into account the high risk of overseas entry, the 127th spring fair, which was scheduled to be held in Guangzhou in April 15th this year, was halted. This is the first delay since the establishment of the Canton Fair. The Canton Fair is an important platform for China's foreign trade and opening to the outside world. It is known as China's barometer. It is also China's most comprehensive, international trade event with the longest history, the highest level, the largest scale, the most commodity variety, the largest number of purchasers and the most widely distributed country.

    "The annual exhibitors are about 2.5-2.6 million. The total turnover of the Canton Fair in the two quarter of spring and autumn in 2019 is about 59 billion 18 million US dollars. The survey shows that the average volume of turnover reached by the exhibitors through the Canton Fair is 24%, and the proportion of the total turnover after the meeting is 79.9%, and the trend is increasing gradually. A staff member responsible for the foreign trade meeting of the Guangzhou news center told reporters.

    So, in the case of the cancellation of the Canton Fair, the orders received by domestic and foreign trade enterprises this year will be greatly reduced. Miss Xia, director of the Sales Department of a toy export enterprise in Dongguan, told reporters that "80% of our company's orders are from the Canton Fair. Many old customers will come. The two Canton Fair is the most important platform for our export orders throughout the year. We have prepared many new products from the third quarter of last year to prepare for the spring fair this year, if the Canton Fair is postponed. Our orders will also be greatly reduced. This year is really too difficult for us. "

    "The amount of orders we received through the Canton Fair in the past accounted for about 70% of the total annual orders. We are doing carpet business. Customers need to see products, see objects, and see pictures on the Internet will be chromatic aberration. Therefore, every year the Canton Fair will become the largest source of flat orders in the company's annual orders. Customers will only place orders when they see objects, so the risk of buying them is much smaller. Most of our customers come from the Middle East and Europe, but these areas are seriously affected by the epidemic, and we don't know whether the company can sustain them. " Shenzhen Sungang Industrial Zone engaged in carpet export business Xiaoya (a pseudonym) told reporters.

    With the cancellation of the Canton Fair, more and more international exhibitions have been postponed or cancelled since this month. Especially, many trade exhibitions held in Italy are important platforms for China's foreign trade enterprises to connect with European customers.

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