Foreign Trade People Have No Choice But To Go Retrograde: The Goods Arrived, But The Customers Went Bankrupt.

At 12 noon on March 30th, Yang Hao was on his way to Ningbo airport, trying to leave for Sweden.

He is the head of the Dongyang no o Leather Co., Ltd. in Zhejiang Province, and has been engaged in the foreign trade industry for 7 years with his parents. This "retrograde" Yang Hao did nothing else to save his business losses.

Yang Hao told the times weekly reporter that he received a telephone call from a logistics company last week and learned that a shipment of goods arriving at the Swedish port could not continue to be sent to the customer because the client company had already gone bankrupt.

"The goods must be shipped back. These about 200000 bags have already reduced my capital of 1 million yuan." Although there is no definite plan for how to deal with the return of goods, Yang Hao has no definite plan for the time being.

Yang Hao is not alone. Under the influence of the international epidemic situation, domestic and foreign trade enterprises are generally under attack. Within a few days, orders are greatly reduced and logistics is blocked. Foreign trade people rush to deal with it.

In March 26th, Zhao Xiaodong, general manager of Orient International Group Shanghai Li Tai Import and Export Co., Ltd. (hereinafter referred to as "Li Tai Import and export") told the times weekly reporter that if the epidemic is a competition, the domestic epidemic is the first half, while the international epidemic is the second half, and the foreign trade enterprises are deeply affected by the trend of the second half of the epidemic.

"In the first half, we resumed our work and asked when we could deliver the goods. The second half became a lot of customers. All the stores were closed, and the orders were cancelled. We chased our customers and asked if they could pick up the goods on time. Zhao Xiaodong said.

Under the background of globalization, the continuous fermentation of the epidemic situation in the customers' country has triggered the chain reaction of the domestic foreign trade industry.

All orders are suspended.

The textile and garment industry is the first to be affected.

"Except for the goods that are ready for delivery immediately, no warehouse delivery, still doing, and materials have not been started yet, all of them have stopped." In March 26th, Yang Guomin, general manager of Shanghai Jiaxin silk import and Export Co., Ltd., told the times weekly reporter.

According to him, the news came to a surprise. In March 25th, the arrival of customer mail stopped everything in full swing.

"After today, we will not deliver the goods by air or sea." Yang Guomin said.

Information from the sky shows that Shanghai Jiaxin silk import and Export Co., Ltd. is controlled by 002404.SZ, 49% of which is mainly garments. Yang Guomin revealed that the main customers of the company are ZARA, MASSIMO, DUTTI and other international famous brands.

Another order is cancelled directly.

Zhao Xiaodong disclosed that in the early March, customers continued to cancel orders. "As of now, we are affected by orders of 70 million US $80 million. Among them, $about 40000000 was directly canceled, and orders for delayed shipment were $15 million, involving more than 60% customers.

Not only has the textile industry been hit hard. In March 26th, a staff member of a foreign trade company specializing in building steel plates and other metal products exported to Jiangyin told the times weekly that some customers had made clear the intention to delay order shipment.

The capital chain also takes the lead and moves the whole body.

"Many orders have already started production, many of the finished products are already in the production process, and the early investment is also going on. Once the cancellation is made, it is very difficult for us to recover the losses." Zhao Xiaodong also said that the delay in delivery would also affect the payment of the final payment.

According to its disclosure, large customers had been paying 45 to 60 days after shipment, and now there is a request for payment of 120 days. "Delayed payment, we are worried that if the customer fails, we should also bear more financial pressure."

High freight charges

Orders that have not yet been affected may also face a "bad luck".

Yang Hao told the times weekly reporter that the company still has orders for shipment. "I want to get rid of the goods before the customers have notified them, for fear that customers will refuse them in a few days."

But Yang Hao used to use the way of shipping not only cost increases, but also is becoming uncontrollable.

"Shipping to the United States, the warehouse can be loaded to 70% to 80%, and now only 30% to 40%, the ship was lost in the past." In March 29th, Shen Minrong, chairman of Shanghai Jia speed Logistics Co., Ltd. disclosed to the times weekly reporter.

"A lot of goods have been closed, and the containers have been installed. Up to now, they have not been shipped out at the ports." Shen Minrong said that this may be because the original said that it could be shipped, customers suddenly said that they could not receive, or that the other side of the port may be closed.

The cargo still needs to pay additional port storage charges when the goods remain in port. This allows foreign trade operators to walk on thin ice every day.

In order to rush the goods to the customer's hand, Yang Hao chose to fly by air instead. "I don't want to make money either." Yang Hao said.

But the price of air freight is soaring.

Shen Minrong told the times weekly reporter that during the epidemic, many air transport flights were reduced, and air freight prices rose to three or four times that of normal times.

Take the airport airfreight to the United States as an example, Shen Minrong disclosed that the previous price was more than 20 yuan per kilogram, and now it has risen to more than 50 yuan. "Door to door international express has risen to more than 70 yuan."

Even if we can accept the high price, the position of the air freight will start to be difficult.

"Now the air transportation is mainly based on medical materials, and we need to arrange all the goods in order to get there." Yang Hao said.

In March 27th, Yang Daqing, a special researcher of the China logistics society, told the times weekly reporter that after the outbreak of the global outbreak, markets such as Europe and the United States closed customs and made traffic control, which made China's international air cargo market less intense in terms of transport capacity even more tense. "China is currently the largest exporter of the largest masks and other epidemic prevention materials in the world, and therefore the demand for air cargo surges".

Yang Daqing also said that China's international commercial parcel airlift is highly dependent on FedEx, DHL, UPS and other European and American air express companies. With the escalation of the US and European epidemic and the impact of the industrial chain, it also affects the stable operation of European and American air cargo enterprises.

Active bailout

International freight forwarders have always been praised as a barometer of the foreign trade industry. Shen Minrong said that as of now, the company's orders have fallen by 50%.

In March 7th, the General Administration of Customs issued the "first 2 months of China's foreign trade import and export 4 trillion and 120 billion yuan", the data show that China's first two months of trade in goods than the same period last year dropped 9.6%, of which exports were 2 trillion and 40 billion yuan, down 15.9% over the same period last year.

Even large foreign trade companies are forecasting their possible impact.

Zhao Xiaodong believes that if the global epidemic can be controlled in April, the company may be affected by 1/3 throughout the year. "If the epidemic is controlled, the subsequent impact will continue. The clothing is cyclical. It needs proofing, confirmation, planning to place orders to implement production. It will take several months to come and go."

"If we can't control it in April, the whole year's business will be affected." Zhao Xiaodong added to the times weekly reporter.

At present, the foreign trade industry is actively addressing this crisis.

Yang Hao said that because its main product bag is not seasonal, it is making efforts to revitalize cash flow to cope with the business after the outbreak. "To tell you the truth, the biggest problem now is to put pressure on the money, and the goods are not to be sold, for fear that the capital will not flow, and I will not have the money to buy the raw materials if I have orders again."

In order to revitalize cash flow, Yang Guomin is actively collecting money from customers. "At present, we are asking our customers to collect the money from the end of last year to February. Our accounts are usually within 45 to 90 days.

Some enterprises have plans to fight for the domestic market. "I used to be a foreign trade only now, but now I am ready to switch to domestic sales, and through this winter period, the goods on the Internet are booming now. I am trying to find some net red to try to bring goods, and also to make a list through Alibaba." Yang Hao said.

Zhao Xiaodong also said that at present, he is looking for new business channels to try to transfer orders to areas that are not so influential.

Support for national policies ensues.

On March 26th, Liu Changyu, two inspector of the Ministry of foreign trade of the Ministry of Commerce, said that the Ministry of Commerce will pay close attention to the challenges brought by the global spread of the epidemic, actively and orderly promote the resumption of production and production of foreign trade enterprises, protect the export of important enterprises and key products, and support enterprises to take orders actively through online negotiations and online exhibitions. Safety, and strive to stabilize the basic disk.

Local policies have also been promulgated.

In March 24th, the Shanghai Municipal Commerce Commission, China Construction Bank Shanghai branch and China Export and Credit Insurance Corp Shanghai branch jointly launched the notice on strengthening the export credit guarantee financing for SMEs in the service trade, and the CCB provided the first 10 billion yuan special credit line, focusing on Shanghai's foreign trade SMEs under 30 million dollars. The industry will resume work, resume production and resume market, strengthen policy financing, and help foreign trade enterprises overcome the adverse effects of the epidemic.