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The shelves of American malls are empty! And China is “waiting for the boat to come in”! A serious crisis is breaking out in the global supply chain!

global supply chain 0

“The shelves are empty, Biden” has been a hot topic in the US recently. Americans who couldn’t buy goods went crazy @ President Biden. They even transplanted Biden himself!

On the contrary, China’s foreign trade enterprises, but there are mountains of goods, but want to all the inventory to the United States, but not as simple as imagined.

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Got the booking order, but do not know when the ship will come, the factory’s goods do not dare to box! At present, the phenomenon of lack of space is very serious, sometimes in order to timely delivery had to entrust freight forwarders to increase the price of the booking, therefore, the actual container offer on the market is generally higher than the official offer. Guangdong, one of the important work today is to “wait for the ship to come”, said the head of an enterprise.

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Global industry chain paralysis

An epidemic, so that the global industrial chain is nearly paralyzed, the production of a variety of consumer goods, industrial supplies, the burden falls on the shoulders of China, even if the main capacity of the routes are crowded in the U.S.-China route speed, but still difficult to relieve the U.S. port blockage, China’s export enterprises inventory backlog of the situation.

And when the supply chain across the Pacific becomes expensive and fragile for various reasons, the most headache for foreign trade enterprises is not the high freight price itself, but the risk of operation caused by the inventory backlog.

Global supply and demand mismatch

In fact, in front of the enterprise “wait for the ship to” problem, is actually a mismatch between supply and demand, foreign trade enterprises can not order containers, not the real picture of the goods. The current problem exposed in the U.S. and China routes is the entire global supply chain is a microcosm of the serious crisis!

Whether in the United States or Europe’s major ports, there are low efficiency, labor shortage problems. The current overseas demand for Chinese export commodities is still strong, so the future of China’s export container freight pivot or still high, which also put forward higher requirements for foreign trade enterprises to prevent risks and cost management capabilities.

Admittedly, affected by the epidemic, our foreign trade enterprises from the shutdown to full resumption of production, from the lack of orders to dare not take orders, from the exchange rate to the rise in raw material prices, in the face of the difficulties, they not only played a full game but also joined the freight rate surge, rush to order containers in the overtime. Now multiple pressures, for China’s foreign trade enterprises, are seeking a breakthrough through more refined management and R & D innovation, in addition to the current container stacking situation has improved, and this may be a positive signal. After the ship comes, perhaps it will be more worthy of looking forward to the future.

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Business Director at Shanghai Fumao Clothing Co.,LTD

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