Recently, the editor met a friend who is engaged in international shipping. There were a lot of news related to shipping some time ago. Freight rates sometimes rise and sometimes fall. There are all kinds of news in an endless stream. The editor is also confused about this, so it happens to be related to the news. Friends talked about it.
In just one year, prosperity turned into decline
Friends said that shipping prices have been falling this year and started to rebound during the National Day. The main reason is that shipping companies built too many ships in the past few years. Now there is a serious imbalance between supply and demand. Prices are getting lower and lower, and profits are getting lower and lower. Thin. In the end, shipping companies were forced to scrap the ships, and freight rates began to rise.
This reminds the editor of a piece of news I saw at the beginning of this year, saying that because shipping is so popular in 2021, the crew members of shipping companies were given more than 40-month year-end bonuses at the end of the year, which aroused a burst of envy, and then all shipping companies Work hard to build new ships.
As a result, despite the global economic downturn this year, shipping capacity has increased dramatically, and shipping companies have all rolled up. Calculating carefully, it has only been two years since the shipping industry went from skyrocketing profits and frantically expanding shipping capacity to being forced to scrap ships. The situation it faces is indeed the opposite.
When I was in middle school, I took a politics class and talked about economic laws. During the Great Depression in 1933, American farmers would rather dump the milk than sell it at a lower price. On the one hand, it is because the price of energy has increased, and freight may be more expensive than the selling price; on the other hand, because demand has shrunk, the market has collapsed.
The textile industry shares the same fate
The involution of the textile industry this year is actually only half as big as that of the shipping industry. Although it is not as exaggerated as “pouring milk”, production reductions are already very common.
The expansion of weaving capacity started around 2018, and for polyester, it started around 2019. However, after the global COVID-19 pandemic, the overall demand for textiles in the market has shrunk. Although China has the advantages of the entire industrial chain, and its manufacturing and exports are top students globally, it cannot completely offset the impact of economic laws. The overcapacity situation still makes textile people very painful.
Starting last week, the price of polyester filament began to fall sharply, and it is still falling this week. In more than a week, the price of polyester filament has dropped by nearly 1,000 yuan/ton, almost reaching the lowest point of polyester price this year. The main reason for this is The reason is that the market is bearish on future market conditions.
Due to their small individual size, weaving enterprises have lower average risk resistance capabilities. Especially in this year’s market situation, the strategy adopted is more conservative. Therefore, as long as the price of upstream raw materials dares to increase, the downstream weaving industry will dare to immediately reduce production. It is obvious that weaving companies have more holidays this year than in the past few years. In previous years, holidays such as National Day were the busiest times for textile companies, and there were basically few companies taking holidays. This year, companies have all seven days off. Not uncommon either. There are also weekends. In previous years, we didn’t hear much about factories suspending production, but this year many companies also have holidays. After all, suspending production doesn’t sound good, but since the goods cannot be sold, there is no other way to reduce production capacity as much as possible. There are even rumors that some poorly managed textile companies in the market will take a holiday from now on.
Judging from the loom operating rate, it can be clearly seen that compared with the same period in previous years, the loom operating rate of various major clusters in Jiangsu and Zhejiang has declined this year compared with previous years, and operations have begun to be reduced now.
Editorial
In two years, the shipping industry has gone from prosperity to decline. The same is true for the textile industry. The market was still in full swing in 2018, but it will be deserted in 2022. Although the epidemic is the reason, disorderly expansion is also an important factor.
But on the other hand, misfortunes are where blessings depend, blessings are where misfortunes lie, and the ups and downs are constantly changing. As long as textile companies can persist, I believe things will get better one day.
</p
