Orders have been delayed, canceled, and balance payments have not been received… The foreign trade industry has completely entered a cold winter.
However, there are even worse things: foreign traders climb mountains and wades, cross mountains and ridges, and take expensive rides Plane, just to get back the 1 million goods from the bankrupt customer.
Large customers also went bankrupt! Millions of orders are processed into a mystery! At 12 noon on March 30, Yang Hao was on his way to Ningbo Airport, trying to leave the country for Sweden.
He is the person in charge of Ounuo Leather Co., Ltd. in Dongyang City, Zhejiang Province. He has been engaged in the foreign trade industry with his father for 7 years. During this “retrograde”, Yang Hao did not do anything else but to recover the losses in his business.
Yang Hao told reporters that last week, he received a call from the logistics company and learned that a batch of the company’s goods arriving at the Swedish port could not be sent to the customer because the customer company had Bankruptcy.
“This batch of goods must be shipped back. These more than 200,000 packages have already cost me 1 million yuan in funds.” Although I have no idea what to do with the goods after they are shipped back. , Yang Hao also has no clear plans for the time being.
Yang Hao is not an exception. Under the influence of the international epidemic, domestic foreign trade companies have generally been affected. Within a few days, orders have been greatly reduced, logistics has been blocked, and foreign trade people have responded in a hurry.
On March 26, Zhao Xiaodong, general manager of Shanghai Litai Import and Export Co., Ltd. of Oriental International Group, told reporters that if the fight against the epidemic was a game, the domestic epidemic would be in the first half, while the international epidemic would be in the second half. , foreign trade companies were deeply affected by the trend in the first and second half of the epidemic.
“In the first half, we rushed to resume work, and customers asked us when we could deliver goods. In the second half, many customers’ stores were closed and orders were cancelled. We chased after Customers ask if they can receive the goods on time.” Zhao Xiaodong said.
In the context of globalization, one move affects the whole body. The continued fermentation of the epidemic in the country where the customer is located has triggered a chain reaction in the domestic and foreign trade industry.
I want to cry but have no tears! All orders are suspended!
The textile and garment industry was the first to be affected.
“Except for those that are ready for shipment immediately (those that have been finished and have been sent to the warehouse), there are also those that have not been sent to the warehouse, those that are still being made, and those that have been painted but have not yet started. Everything has stopped.” Yang Guomin, general manager of Shanghai Jiaxin Silk Import and Export Co., Ltd., told reporters on March 26.
According to him, the news came unexpectedly. On March 25, the arrival of customer emails stopped everything in full swing.
“After today, we will no longer ship goods, whether by air or sea.” Yang Guomin said.
Tianyancha information shows that Shanghai Jiaxin Silk Import and Export Co., Ltd. is 49% controlled by Jiaxin Silk (002404.SZ), and clothing is its main product. Yang Guomin revealed that the company’s main customers include internationally renowned brands such as ZARA and MASSIMO DUTTI.
Confirmed orders are canceled directly
Zhao Xiaodong revealed that customers started canceling orders in early March. “As of now, our affected orders amount to 70 million to 80 million US dollars. Among them, more than 40 million US dollars of directly canceled orders, and 15 million US dollars of orders affected by delayed shipments, involving more than 60% of customers.”
Not only the textile industry has been hit hard. On March 26, employees of a foreign trade company in Jiangyin that specializes in exporting construction steel plates and other metal products told reporters that some customers have made it clear their willingness to delay order shipments.
The capital chain also affects the whole body.
“Many orders have already been produced, many finished products are already in the production process, and the initial investment has also been reduced. Once cancelled, it will be very difficult for us to recover the losses. .” Zhao Xiaodong also said that delayed delivery will also affect the payment of the final payment.
According to his disclosure, major customers used to pay 45-60 days after shipment, but now they require payment within 120 days. “With delayed payments, we are worried about what will happen if the customer goes bankrupt, and we also need to bear more financial pressure.”
What a bad “luck”! The high shipping costs are hard to swallow!
Orders that have not yet been affected may also face bad luck.
Yang Hao said that the company still has orders for shipment. “I want to sell the goods quickly before the customer notifies me. I’m afraid that in a few days, the customer will…”��rejected it. ”
However, the cost of shipping freight that Yang Hao was accustomed to in the past has not only increased, but also is becoming uncontrollable.
“For shipping to the United States, the warehouse used to be able to load 70%-80%, but now it can only load 30%-40%. This ship must have lost money in the past. “On March 29, Shen Minrong, chairman of Shanghai Jiasu Logistics Co., Ltd., revealed to reporters.
“A lot of goods have been declared for customs and the containers have been loaded. So far, It’s stuck at the port and has not been shipped out. ” Shen Minrong said that this may be because the customer suddenly said that he could not accept the shipment, or the other party’s port may be closed.
If the goods are stranded at the port, you still need to pay Additional warehousing costs at the port. This makes foreign trade operators walk on thin ice every day.
In order to expedite the delivery of goods to customers, Yang Hao turned to air transportation. “I don’t either If you want to make money, just lose less. “Yang Hao said.
But the price of air freight has also skyrocketed.
Shen Minrong Shen Minrong said that during the epidemic, many air freight flights were reduced, and it was common for air freight prices to rise to three or four times the usual price.
Taking the current air freight to the United States airport as an example, Shen Minrong revealed , the previous price was more than 20 yuan per kilogram, but now it has risen to more than 50 yuan, and “door-to-door international express delivery has risen to more than 70 yuan.”
Even if you can accept the high price Prices, air freight positions have become difficult to find.
“Nowadays, air freight shipments are mainly medical supplies, and our kind of goods need to be ordered. You can’t leave until you reach the location. Yang Hao said.
On March 27, Yang Daqing, a special researcher of the China Society of Logistics, said that after the global outbreak of the epidemic, markets such as Europe and the United States closed customs and implemented traffic control, which made our country originally The international air cargo market with insufficient transportation resources is even more tense. “China is currently the world’s largest exporter of masks and other anti-epidemic materials, so the demand for air cargo has surged.”
Yang Daqing He also said that China’s international commercial parcel air transport is highly dependent on European and American air express companies such as FedEx, DHL, and UPS. As the epidemic in the United States and Europe escalates and the industrial chain is affected, it also affects the stable operations of European and American air cargo companies.
Go against the trend! Only together can we save ourselves!
International freight forwarding companies have always been hailed as the sunshine and rain in the foreign trade industry Table, Shen Minrong said that so far, the company’s orders have dropped by 50%.
The General Administration of Customs released “China’s foreign trade import and export in the first two months”, data show , China’s trade in goods in the first two months fell by 9.6% compared with the same period last year; of which exports were 2.04 trillion yuan, a year-on-year decrease of 15.9%.
Even large foreign trade companies are also predicting that Assess the possible impact on itself.
Zhao Xiaodong believes that if the global epidemic can be controlled in April, the impact on the company for the whole year may be 1/3. “Even if the epidemic is controlled, Without control, the subsequent impact will continue. Clothing has a cycle. It requires sampling, confirmation, planning and ordering, and implementation of production. It takes several months to go back and forth. ”
“If it cannot be controlled in April, the business throughout the year will be affected. ” Zhao Xiaodong added to reporters.
Currently, the foreign trade industry is actively responding to this crisis.
Yang Hao said that due to its The seasonality of our main product, leather bags, is not obvious, so we are working hard to revitalize cash flow to cope with the business after the epidemic. “To be honest, the biggest problem now is that we have a lot of money. We don’t have to worry about selling the goods, but we are afraid that the capital turnover will not be enough, and then there will be I didn’t have money to buy raw materials for the order. “
In order to revitalize cash flow, Yang Guomin is actively collecting payments from customers. “Currently we are asking customers to recover all payments from the end of last year to February. Our billing period is generally within 45-90 days. ”
Some companies have plans to switch to the domestic market. “I used to only do foreign trade, but now I am planning to switch to domestic sales to survive this cold winter period. Online delivery of goods is currently booming. I am looking for some internet celebrities to try to bring goods, and I am also making orders through Alibaba. Yang Hao said.
Zhao Xiaodong also said that he is currently looking for new business channels and trying to transfer orders to areas where the impact is not that big.
National policy support follows.
On March 26, Liu Changyu, the second-level inspector of the Foreign Trade Department of the Ministry of Commerce, stated that the Ministry of Commerce will closely Pay attention to the challenges brought by the global spread of the epidemic, actively promote the resumption of work and production of foreign trade companies in an orderly manner, ensure the production and export of important companies and key products, support companies to proactively secure orders through online negotiations, online exhibitions, etc., and work with other countries to ensure the openness of the global supply chain , stable and safe, and make every effort to stabilize the fundamental foreign market.
Local governments have also introduced relevant policies.
On March 24, The Shanghai Municipal Commerce Commission, China Construction Bank Shanghai Branch, and China Export and Credit Insurance Corporation Shanghai Branch jointly issued a notice on “Work on Serving Foreign Trade Small and Medium-sized Enterprises to Strengthen Export Credit Policy Financing”. China Construction Bank provided the first tranche of RMB 10 billion in special credit The quota will focus on supporting Shanghai’s foreign trade small and medium-sized enterprises with an export volume of less than 30 million US dollars to resume work, production and market, strengthen insurance policy financing, and help foreign trade companies overcome the adverse impact of the epidemic.</p
