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Will Orders Come Back To China Again?

2021/08/06

Recently, the epidemic has rebounded in many places in China. Looking abroad, the epidemic is even more fierce. Many Asian countries continue to announce new cases dominated by the Delta strain. In the United States, nearly 200,000 new cases were diagnosed on July 31. The single-day case quantities confirmed a new high since February this year!

 

According to media reports in the US freight industry, they are deeply concerned about the supply in the US market in the next few months.

 

Because import demand in the United States is stronger than ever before, and inventories are painfully low. However, on the supply side, the risk of transportation volume is rising. Most US container imports are dependent on China and other parts of Asia, and now the Delta mutant virus is making a comeback in various countries.

 

Last year, there were two major drops in freight volumes across the Pacific, one time when China closed the city in the first quarter, another time when the United States closed the city in the second quarter.

 

Looking at the entire Asia now, the blockade in Southeast Asia has curbed production, and factories are also facing the same supply chain dilemma when purchasing materials and components. Whether it is an importing country or an exporting country, the threats are becoming more severe.

 

American freight media commented that important import destinations in the United States are now threatened by the variant epidemic, and market supply will once again face serious challenges.

 

The shortage of supplies in the United States and the shutdown of many countries in Southeast Asia have caused a "supply cut" crisis. Some media reported that the delivery of American furniture orders has been delayed for 9 to 12 months.

 

U.S. importers and consumers have high import demand for home furnishing products, but the problem of port congestion, delivery delays, and space shortages has become more serious, and the situation has not improved. U.S. retailers have also set a record for 30 years (since 1992) Minimum inventory record.

 

In this case, China has obvious advantages in replacing ASEAN countries in furniture products. Therefore, despite the impact of the epidemic on international logistics as well as port congestion, delivery delays, and space shortages, and still facing tariff issues, most of the orders may still return to China in the near future.

 

China has obvious advantages not only in furniture products. Actually China's domestic textile market is also relatively favorable. India, Vietnam, Bangladesh and other major textile countries have almost shut down their textile industries due to the outbreak of the epidemic. However, strict domestic epidemic prevention and control and a complete textile industry chain have made the stagnant textile orders of these countries and regions only transfer to our country. At present, some orders from India and other Southeast Asian countries have begun to return to China, and the number of orders brought by domestic textile, chemical and other industries will gradually increase.

 


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